OVERVIEW OF FSSAI LICENSE FEE FOR RESTAURANTS IN INDIA
The Food Safety and Standards Authority of India (FSSAI) regulates food businesses in India in accordance with the guidelines of the Food Safety and Standards Act, 2006. For restaurants, the FSSAI is not only a legal requirement, but more of an assurance for customers that the food you serve is of a certain hygienic quality and is safe for consumption. The FSSAI license fee varies from operator to operator and is related to the type of license, scale of establishment and the annual turnover.
Restaurants, as a category, stratify into three main categories: staggeringly small numbers (Small eateries), medium-sized sit-down diners (Mid-sized restaurants) and chain/franchise operations (Large Medium, Large). Each of them is liable to its own classification. Small, local restaurants or chicken dizi setups may commence with a basic registration based on their concept, while larger restaurants and establishments that service multiple states are permitted to apply for a central license or a state license.
The licensing fee of each different license type is reasonable for the amount of capital that small businesses have to get off the ground and to maintain. In addition, the fee structure is very proportional to the amount of food or drink the business is permitted to handle. For instance, a small restaurant with a small turnover will pay a fraction of its monthly outgo, compared to large operators like a multi-chain franchise license. This dynamic fee scale assists compliance while also allowing every food business to apply and abide by the standard food safety practices. The fee structure is fair for every business and also ensures a level of regulatory necessity.
TYPES OF FSSAI LICENSES FOR RESTAURANTS IN INDIA
In India, whichever type of restaurant you operate, you are required to get either an FSSAI registration or an FSSAI license. Your annual turnover and the size of your food operation determine which type of FSSAI registration or license you will need (FSSAI, 2021). There are three types in total, these are:
FSSAI Basic Registration – is for very small food businesses with a turnover of ?12 Lakhs. Street food vendors or small cafes, or local restaurants would typically start with this registration. The process is easy, the fee is close to nothing, and the registration is valid between 1 to 5 years.
FSSAI State License – A state license is for restaurants with an annual turnover between ?12 Lakhs and ?20 Crores. This would include mid-sized restaurants, popular restaurants, and standalone fine dining establishments. The application process, the documentation are more rigid than a basic registration. The documentation needed covers chef background, kitchen hygiene, equipment used, employee information, etc.
FSSAI Central License - The FSSAI central license is for large restaurants or chains that are anything more than ?20 crores in turnover or an establishment with multiple outlets within states. Large restaurants or chains that are importing/exporting food also require a central license.
Each license helps ensure a restaurant keeps safe, hygienic, and quality food. Selecting the right license type is extremely important, as failing to comply may lead to penalties or closure of the establishment.
FSSAI LICENSE FEE STRUCTURE FOR RESTAURANTS IN INDIA
The most important thing to keep in mind regarding the FSSAI license fee for restaurants is that there is no single fee. What you pay will be determined by the type of license you choose and the duration of the license. FSSAI licenses can be valid for a duration of up to 1-5 years. The FSSAI license fees will generally break down into the following categories applicable throughout India:
FSSAI Basic Registration: ?100. This is well-suited to the very smallest of restaurants or food stalls with a turnover of less than ?12 lakhs annually.
FSSAI State License: ?2,000 to ?5,000. This is dependent on the size and category of the restaurant, not to be confused with the basic registration. Standalone restaurants and mid-level restaurants should fall under this licensure category with fees comparable to others operating in your region.
FSSAI Central License: ?7,500. This applies to larger-sized businesses or any chain or restaurant with a legal presence in more than one state or a turnover of greater than ?20 crores.
The restaurant's total license fee does not include professional fees pertaining to those transactions that incurred costs. Should the restaurant owners hire someone like a consultant or agent(s), they can charge the restaurant for preparing filing paperwork to apply for the FSSAI. A restaurant applying for an FSSAI license would be authorised, depending on the length of the license, to operate as long as the fee is paid. Otherwise, the FSSAI licenses have to be renewed before the license expires to mitigate penalties.
The tiered FSSAI fee structure creates a fair environment, ensuring that small-scale restaurants do not face significant fees, while larger businesses pay a higher fee comparatively. This makes it practical for every business to comply with respective authorisations, thereby facilitating uniformity for food safety regulations within all sectors of the restaurant industry in India.
WHY RESTAURANTS MUST HAVE AN FSSAI LICENSE?
An FSSAI license is not just a legal formality but is also vital to the restaurant in India. First and foremost, it provides the guarantee that there is food safety, hygiene, and processes in place. Food quality is a main area of concern for customers in today’s competitive food culture, and the FSSAI license should be displayed on all packaging, in menus, and advertisements to build consumer confidence and the reputation of the restaurant.
Secondly, operating without an FSSAI license is illegal and can lead to heavy fines, closure notices, and even criminal liability. The Food Safety and Standards Act, 2006, compels all businesses involved with food to have licensing regardless of size, and non-compliance can lead to lost expansion opportunities, as one food aggregator platform, such as Swiggy or Zomato, is very vocal about requiring licensed businesses for listing.
The license itself provides several doorways in terms of growth. These can include accessing loans from banks, partnerships and collaborations with local/regional brands. The license can show stakeholders and investors that the restaurant/business adheres to norms and puts emphasis on safety.
Ultimately, an FSSAI license is not just about compliance for legal purposes but also about the restaurant creating value in its offerings, ensuring safety and building trust.
CONCLUSION
The FSSAI license fee for restaurants in India will be affordable without compromising on accountability to the end consumer. Small eateries may only have basic registration at a low fee. Larger restaurants or chain restaurants comply with more reasonable fees as they are larger businesses. The FSSAI license is required regardless of whether it is basic, state or central, to legally operate, comply with obligations presented to customers, and create a perception of legitimacy.
The FSSAI license ensures that you are being legally responsible to your customers and yourself. It enables customers to know a restaurant is compliant with the national food safety standards, which has an impact on guest loyalty and success. Customers are becoming increasingly educated about what food quality means in terms of eating out (or otherwise), and you even have a direct and indirect non-competitive advantage in displaying your FSSAI credentials and license.
Compliance is also working correctly; non-compliance has many consequences, including monetary penalties, forced closure and damage to credibility. All restaurants, large and small, should be responsible and see the value in FSSAI registration as an investment, not a cost. Upon start-up, could you imagine the simple action of having an FSSAI registration making the difference between being a little restaurant and being a reputable food brand in India's advancing food environment?
Want to get a FSSAI LICENSE for your food business? eStartIndia will help you get FSSAI LICENSE for your food business as per your requirements at a very affordable cost.
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