FSSAI Licence and Registration: A Compliance Guide for Startups, Cloud Kitchens and E-commerce Sellers

By Advocate Tarun Choudhury, Supreme Court of India | 25 Years of Legal Experience | Updated: 10 November 2026

India’s food industry is undergoing a remarkable transformation. From home-based food entrepreneurs and cloud kitchens to packaged food startups, online grocery businesses and direct-to-consumer food brands, technology has made it possible to launch a food business with relatively modest investment.

A founder can develop a product, establish a brand, create an online ordering platform and begin receiving orders without necessarily maintaining a traditional restaurant or retail establishment.

But there is one aspect of starting a food business that should never be postponed: regulatory compliance.

In my 25 years of legal practice, I have repeatedly seen how businesses concentrate on commercial expansion while treating statutory compliance as an administrative formality. That approach can prove expensive. A business may have an excellent product, a growing customer base and substantial investment behind it, yet find itself exposed to regulatory proceedings because it overlooked a basic statutory requirement.

One such requirement is obtaining the appropriate FSSAI Licence and Registration.

The Food Safety and Standards Act, 2006, establishes a licensing and registration framework for food businesses operating in India. However, the regulatory position underwent significant changes in 2026. The turnover thresholds were substantially revised, perpetual validity was introduced, and the eligibility framework was expanded through the Food Safety and Standards Authority of India (FSSAI).

These changes are particularly relevant to startups, cloud kitchens, home-based food businesses, manufacturers, marketplace sellers and businesses selling food through their own websites or applications.

This article examines the applicable legal provisions, explains which category of FSSAI authorisation a business requires, identifies common compliance mistakes and discusses the legal consequences of operating without the required licence or registration.

Also Read: Food Sample Failed FSSAI Lab Test? Legal Remedies & 30-Day Appeal

1. Why FSSAI Licence and Registration Is a Legal Requirement

The starting point is Section 31 of the Food Safety and Standards Act, 2006.

Section 31(1) provides that no person shall commence or carry on any food business except under a licence. Section 31(2), however, creates an exception for specified petty food businesses, which are required to register themselves with the appropriate authority rather than obtain an ordinary licence.

The distinction is important. Registration is not an exemption from the law. It is a simplified statutory compliance route for businesses falling within the prescribed category.

The expression food business is also considerably wider than many entrepreneurs appreciate. Section 3(1)(n) of the Act encompasses activities relating to the manufacture, processing, packaging, storage, transportation, distribution and sale of food.

Consequently, the licensing framework is not confined to restaurants, hotels or conventional food manufacturers.

It can extend to:

• Home-based food entrepreneurs.
• Cloud kitchens and dark kitchens.
• Packaged food manufacturers.
• Bakery and confectionery businesses.
• Online grocery businesses.
• Food delivery and e-commerce operators.
• Food importers and distributors.
• Warehouses and food storage facilities.
• Businesses selling food through their own websites or mobile applications.

The relevant question is not whether the business operates from a commercial shop. It is whether the activity falls within the statutory definition of a food business and which authorisation category applies.

2. What Changed in FSSAI Regulations in 2026?

Several important regulatory developments took place during 2026. Businesses relying on older compliance articles should be particularly careful because the earlier turnover thresholds have been superseded.

A. Amendment Regulations Dated 10 March 2026

The Food Safety and Standards (Licensing and Registration of Food Businesses) Amendment Regulations, 2026, notified on 10 March 2026, introduced important changes to the licensing framework.

The reforms include:

• Perpetual validity of FSSAI licences and registrations, subject to suspension, cancellation or surrender.
• Deemed registration for eligible street food vendors already registered under the Street Vendors (Protection of Livelihood and Regulation of Street Vending) Act, 2014.
• A risk-based inspection and food safety audit framework.
• Authority for FSSAI to specify turnover thresholds and other eligibility criteria for different food businesses.
• Deemed suspension in specified circumstances involving non-payment of annual fees or failure to submit applicable returns.

B. FSSAI Order Dated 13 March 2026: Revised Turnover Thresholds

Following the amendment, FSSAI issued an implementation order dated 13 March 2026, bearing File No. RCD-01002/1/2021-Regulatory-FSSAI-Part(1), I/36087/2026.

The revised turnover thresholds became effective on 1 April 2026.

The previous registration ceiling of ₹12 lakh was increased to ₹1.5 crore. Similarly, the upper threshold for a State Licence was increased to ₹50 crore.

This is a substantial change for small and medium-sized food businesses.

C. Further Amendment Dated 23 June 2026

An additional amendment, notified on 23 June 2026, modified certain operational compliance requirements under the Licensing and Registration Regulations.

Among other things, it rationalised the requirements concerning daily production and raw-material records and the application of First In First Out (FIFO) and First Expire First Out (FEFO) stock rotation practices.

The amended provisions distinguish between manufacturing and non-manufacturing food businesses. Certain record-keeping requirements now apply specifically to manufacturing businesses, while the revised FIFO/FEFO provision provides an exemption for retailers.

This development is relevant because a business should not automatically assume that every regulatory obligation applicable to a manufacturer also applies to a retailer or other non-manufacturing operator.

At the same time, the amendment does not eliminate the general obligation to maintain appropriate food safety, hygiene and traceability standards.

Revised FSSAI Turnover Thresholds From 1 April 2026

Category	Earlier Threshold	Revised Threshold	Application Form
Basic Registration	Up to ₹12 lakh	Up to ₹1.5 crore	Form A
State Licence	Above ₹12 lakh up to ₹20 crore	Above ₹1.5 crore up to ₹50 crore	Form B
Central Licence	Above ₹20 crore	Above ₹50 crore	Form B

Important: These are the general turnover thresholds. They must not be applied mechanically. Certain activities require a Central Licence irrespective of turnover, while other activities have specific eligibility conditions.

3. Which FSSAI Licence Applies to Your Business?

This is probably the most important question for anyone entering the food industry.

Many entrepreneurs assume that turnover alone determines the applicable licence. That assumption is incomplete.

FSSAI considers the nature of the business, its activities, turnover and the applicable kind-of-business eligibility criteria. The official FoSCoS eligibility framework must therefore be examined before selecting the application category.

A. Basic FSSAI Registration

Basic Registration is generally intended for eligible petty food business operators falling within the applicable turnover threshold of ₹1.5 crore.

It may be relevant to:

• Small food retailers.
• Eligible home-based food businesses.
• Small-scale food manufacturers.
• Petty food vendors.
• Small food establishments falling within the prescribed eligibility category.

The application is ordinarily made through Form A.

However, a business cannot claim Basic Registration merely because its turnover is below ₹1.5 crore. If its particular activity requires a State or Central Licence, that activity-specific requirement takes precedence.

B. State FSSAI Licence

A State Licence generally applies to eligible food businesses with annual turnover exceeding ₹1.5 crore but not exceeding ₹50 crore.

This category may cover restaurants, food manufacturers, processors and other eligible establishments operating within the applicable State-level licensing framework.

Businesses must examine the relevant kind-of-business classification and premises requirements before applying.

C. Central FSSAI Licence

A Central Licence generally applies to eligible businesses with turnover exceeding ₹50 crore.

However, several activities require a Central Licence irrespective of turnover.

The FoSCoS eligibility framework identifies categories such as e-commerce food businesses and importers among the activities requiring Central licensing without a turnover restriction.

Other specified categories include certain export-oriented units, merchant exporters, proprietary food manufacturers, manufacturers of specified health supplements and nutraceuticals, and certain specialised food businesses.

Therefore, a startup with annual turnover of only ₹20 lakh may nevertheless require a Central Licence if its activity falls within a category for which Central licensing is mandatory.

This is precisely why checking the activity-specific eligibility criteria is essential.

4. FSSAI Licence for Food Startups and Manufacturers

Consider an entrepreneur launching a packaged food brand selling sauces, bakery products, snacks, ready-to-eat meals or traditional Indian food products.

The founder may initially operate from a small production facility, employ a handful of workers and sell through retailers or online marketplaces.

The first legal question is whether the business is manufacturing, processing, repacking, relabelling or merely trading in food products.

These activities are not interchangeable for licensing purposes.

For example, a business manufacturing its own packaged snacks is legally different from a retailer purchasing finished products from another manufacturer and reselling them.

The entrepreneur should examine the following:

• Whether the business is manufacturing or processing food.
• Whether the food product falls under a specialised category.
• Whether the product is proprietary food, a nutraceutical or another specially regulated product.
• Whether the business operates from one or multiple premises.
• Whether its turnover places it within the registration, State or Central category.
• Whether the products will also be sold through e-commerce channels.

A manufacturer of an ordinary packaged food product may qualify for the general turnover-based framework. However, certain proprietary food and specialised product categories attract separate Central Licence requirements.

Practical legal advice: Do not complete the licensing application before finalising the product classification. An incorrect declaration about the nature of the product or the activity being undertaken can create regulatory complications later.

5. FSSAI Licence for Cloud Kitchens: What Every Founder Should Know

Cloud kitchens have become an important part of India’s food economy. They operate without conventional dining facilities and generally receive orders through websites, mobile applications or food delivery aggregators.

The absence of a dining area does not remove the business from the FSSAI regulatory framework.

A cloud kitchen prepares, handles, stores and sells food. It must therefore obtain the appropriate registration or licence for its activities.

A. Which Licence Does a Cloud Kitchen Require?

For an eligible cloud kitchen falling within the ordinary restaurant or food-service classification, the general turnover framework is:

Annual Turnover	General Licensing Category
Up to ₹1.5 crore	Basic Registration
Above ₹1.5 crore up to ₹50 crore	State Licence
Above ₹50 crore	Central Licence

The actual classification must be verified against the nature of the kitchen’s activities and the current FoSCoS eligibility criteria.

B. Does Every Cloud Kitchen Need a Separate Licence?

Yes, the premises question requires particular attention.

Suppose a food brand operates three kitchens:

• One in Kolkata.
• One in Mumbai.
• One in Bengaluru.

The fact that all three kitchens operate under one brand does not automatically permit the business to operate all three premises under one location-specific authorisation.

Each physical food business premises must be appropriately covered by the relevant FSSAI authorisation.

At the same time, the applicable turnover category must be assessed with reference to the legal entity and its aggregate business operations, rather than artificially treating every outlet as an independent business merely because it has a separate address.

The distinction is between the turnover assessment and the premises-specific authorisation requirement.

C. Can Multiple Food Brands Operate From One Kitchen?

Yes, multiple brands may operate from one physical kitchen, subject to the applicable licensing conditions.

However, the licence must accurately reflect the food business activities being undertaken. The declared categories of food and the nature of operations must correspond with actual activities.

For instance, a kitchen licensed only for a particular food-service activity should not casually assume that it can also undertake unrelated manufacturing, repacking or processing activities without examining whether a modification or additional authorisation is necessary.

D. Does a Home-Based Cloud Kitchen Need FSSAI Registration?

Yes.

Operating from a residential property does not automatically exempt a food business from FSSAI requirements.

If a person regularly prepares and sells food as a business, the activity may fall within the statutory framework.

The applicable registration or licence will depend on the nature of the business, turnover and eligibility conditions.

6. FSSAI Licence for E-commerce Food Sellers: An Important Legal Distinction

This is one of the most important areas of compliance for modern food entrepreneurs.

Consider three different business models:

1. A food manufacturer selling products through an independent retail network.
2. A food business selling products through an online marketplace.
3. A food business selling products through its own website or mobile application.

These arrangements may involve different regulatory responsibilities.

A. E-commerce Is a Separate Kind of Business

The FoSCoS kind-of-business eligibility framework describes e-commerce as the buying and selling of goods or services through the internet, including commercial transactions facilitated through digital networks.

Importantly, the official eligibility framework identifies e-commerce as a category with no restriction on turnover threshold and specifies a Central Licence.

This means that the ordinary turnover-based registration and State Licence thresholds cannot simply be applied to an activity classified as e-commerce.

A food business carrying out e-commerce activities must examine whether it requires the additional e-commerce Central Licence, even when its turnover is comparatively small.

B. Sellers Operating Through Amazon, Other Marketplaces or Delivery Platforms

A common misunderstanding among small food entrepreneurs is that the marketplace’s FSSAI licence automatically covers every seller listed on its platform.

That is not a safe legal assumption.

The platform operator and the individual food business operator have distinct responsibilities.

The marketplace must comply with the obligations applicable to its own e-commerce food business operations. The individual seller must also hold the authorisation required for its own food business activities.

Where the seller’s activities fall within the FoSCoS e-commerce category, the Central Licence requirement must also be examined.

A manufacturer selling through a marketplace should therefore not assume that the marketplace’s licence replaces its own manufacturing or other applicable food business authorisation.

C. What If You Sell Food Only Through Your Own Website?

This question is particularly relevant to direct-to-consumer food startups.

Some entrepreneurs believe that operating their own website rather than using a third-party marketplace makes them ordinary food retailers.

However, the official FoSCoS eligibility description of e-commerce is broad and expressly covers buying and selling through the internet.

Accordingly, a business selling food through its own website or mobile application should examine the e-commerce Central Licence requirement rather than assume that its low turnover permits Basic Registration alone.

The actual legal classification should be checked against the current FoSCoS criteria and the precise business arrangement.

D. Important E-commerce Compliance Obligations

• Obtain the applicable FSSAI authorisation for the business activities.
• Display the appropriate FSSAI licence or registration number wherever required.
• Ensure that the information displayed on online listings is accurate.
• Maintain appropriate product and supplier records.
• Ensure that food products comply with applicable labelling and display requirements.
• Check the authorisation requirements applicable to warehouses and fulfilment facilities.
• Examine the additional requirements applicable to e-commerce food business operators.

Online visibility does not reduce statutory responsibility. In fact, the digital nature of the transaction can introduce additional compliance obligations.

7. Nine Common FSSAI Compliance Mistakes That Can Put a Food Business at Risk

In regulatory matters, the difficulty often does not arise because the law is particularly complicated. It arises because businesses select the wrong category, overlook an obligation or fail to update their compliance position after expansion.

Mistake 1: Using Outdated Turnover Thresholds

Several online articles continue to quote the earlier registration ceiling of ₹12 lakh and the earlier Central Licence threshold of ₹20 crore.

These figures are no longer the applicable general turnover thresholds for new applications from 1 April 2026.

Using an outdated guide can result in an incorrect application and unnecessary compliance expenditure.

Mistake 2: Selecting the Wrong Kind of Business

A manufacturer, retailer, restaurant operator and e-commerce food business do not necessarily fall under the same licensing category.

For example, a business manufacturing packaged food should not describe itself merely as a retailer because its products are eventually sold to consumers.

The declared business activity must reflect the actual operations.

Mistake 3: Using One Location’s Licence for Multiple Kitchens

A licence issued for one premises should not be treated as blanket authorisation for every other kitchen or warehouse operated by the business.

Businesses expanding into additional cities must examine the licensing requirements for every additional premises.

Mistake 4: Ignoring the E-commerce Central Licence Requirement

Food businesses selling through their own websites or applications sometimes assume that a small turnover permits Basic Registration.

However, the FoSCoS eligibility framework identifies e-commerce as a separate Central Licence category without a turnover restriction.

This is an important distinction that should be resolved before the online business goes live.

Mistake 5: Assuming Perpetual Validity Means No Further Payments

The 2026 reforms introduced perpetual validity for licences and registrations.

However, perpetual validity does not mean that a food business can ignore its continuing obligations.

Regulation 2.1.7(2), as substituted by the 2026 amendment, provides for deemed suspension where the operator fails to pay the annual licence or registration fee or fails to submit an applicable return by the due date.

The suspension is revoked upon payment of the outstanding fee or submission of the return, together with the applicable penalty, as prescribed.

Importantly, the business must not carry out food business activities during the suspension period.

Mistake 6: Treating the Licence as a Substitute for Hygiene Compliance

Obtaining an FSSAI licence is only one part of the compliance framework.

The applicable hygiene and sanitary requirements under Schedule 4 of the Licensing and Registration Regulations continue to apply.

Businesses should maintain appropriate systems for:

• Personal hygiene and employee practices.
• Safe drinking water and water quality.
• Pest control.
• Storage and temperature management.
• Prevention of cross-contamination.
• Cleaning and sanitation.
• Food handling and processing.
• Appropriate records and traceability.

Food safety is an ongoing statutory responsibility, not an exercise completed on the date the licence is issued.

Mistake 7: Failing to Display the FSSAI Number

The applicable licence or registration number must be displayed in the manner prescribed by the regulations and relevant directions.

Depending on the business model, this may include the premises, invoices, bills, food packaging and online listings.

Businesses should not assume that displaying a number on one platform automatically satisfies every other applicable display requirement.

Mistake 8: Failing to Update the Licence After Expansion

A business that starts with one kitchen may eventually expand into several cities.

It may also introduce new food products, begin manufacturing, establish warehouses or start selling through an independent e-commerce platform.

Such developments can change its licensing obligations.

Every significant expansion should trigger a fresh review of the existing authorisation, declared activities and premises.

Mistake 9: Assuming the Delivery Platform’s Licence Covers the Kitchen

A restaurant or cloud kitchen listed on a food delivery platform remains an independent food business operator.

The platform’s licence does not automatically authorise the kitchen to manufacture, prepare or sell food.

The kitchen must maintain its own appropriate authorisation.

8. Penalties for Operating Without an FSSAI Licence or Registration

For a business owner, this is perhaps the most commercially significant part of the legal framework.

What happens when a food business starts operations without obtaining the required FSSAI licence or registration?

The principal statutory provision is Section 63 of the Food Safety and Standards Act, 2006.

A. Section 63: Carrying on a Food Business Without a Licence

Section 63 addresses persons or food business operators who are required to obtain a licence but manufacture, sell, store, distribute or import food without the required licence.

Originally, the provision contemplated imprisonment for a term extending to six months and a fine extending to ₹5 lakh.

However, the legal position subsequently changed.

The Jan Vishwas (Amendment of Provisions) Act, 2023 amended Section 63 by replacing the earlier punishment with a monetary penalty that may extend to ₹10 lakh.

The relevant amendment came into force on 7 November 2023 through Government Notification S.O. 4834(E).

Accordingly, the applicable Section 63 provision no longer contains the earlier imprisonment term for the offence of carrying on a food business without a licence.

Legal distinction: This does not mean that every offence under the Food Safety and Standards Act has been decriminalised. Other offences, particularly those involving unsafe food, can attract separate and more serious consequences.

B. What Happens If a Petty Food Business Operates Without Registration?

Section 31(2) exempts specified petty food businesses from the ordinary licensing requirement but expressly requires them to register.

The registration requirement is therefore a statutory obligation, not an optional formality.

Section 63 expressly refers to persons exempted under Section 31(2), and its application to a petty operator who has failed to register must be examined in light of the precise statutory wording and applicable enforcement provisions.

It would be incorrect to assume that a petty food business can operate without any authorisation merely because it has a small turnover.

C. Other Important Penalty Provisions

Operating without a licence may not be the only contravention discovered during a regulatory inspection.

Depending on the facts, other provisions of the Act may also become relevant.

Section	Nature of Contravention	Statutory Exposure
Section 52	Misbranded food	Penalty up to ₹3 lakh
Section 53	Misleading advertisement	Penalty up to ₹10 lakh
Section 55	Failure to comply with directions of a Food Safety Officer	Penalty up to ₹2 lakh
Section 56	Unhygienic or unsanitary processing or manufacturing	Penalty up to ₹1 lakh
Section 58	Contraventions for which no specific penalty is provided	Penalty up to ₹2 lakh
Section 61	False information	Penalty up to ₹10 lakh
Section 63	Carrying on food business without required licence	Penalty up to ₹10 lakh

The applicable provision depends on the actual contravention. These penalties should not be treated as automatic additions to a Section 63 penalty in every case.

D. What If the Food Is Also Unsafe?

There is an important distinction between operating without a licence and selling unsafe food.

Section 59 of the Food Safety and Standards Act addresses the manufacture, storage, sale or distribution of unsafe food.

Depending on the consequences, unsafe food can attract imprisonment and monetary punishment under the applicable statutory provisions.

Therefore, a business owner should never interpret the amendment to Section 63 as a general immunity from criminal liability under food safety legislation.

E. Improvement Notices, Suspension and Cancellation

Section 32 empowers the Designated Officer to issue an improvement notice where the relevant statutory conditions are satisfied.

The notice may require the food business operator to take specified corrective measures within the prescribed period.

Failure to comply can lead to suspension or cancellation of the licence, subject to the statutory procedure.

These regulatory consequences can be commercially damaging even where the business has not faced a substantial monetary penalty.

F. Can Directors and Company Officers Be Personally Liable?

Yes, in appropriate circumstances.

Section 66 of the Food Safety and Standards Act deals with offences committed by companies.

Where a company commits an offence, persons who were in charge of and responsible for the conduct of its business may be exposed to liability, subject to the statutory requirements and available defences.

A director or officer may also face liability where the offence is proved to have occurred with their consent or connivance, or is attributable to their neglect.

Corporate structure is therefore not an automatic shield against regulatory responsibility.

9. Can a Food Business Start While the FSSAI Application Is Pending?

This question deserves careful consideration because Section 31 contains an important statutory proviso.

In specified circumstances, where an application for a licence has been made and the licence has neither been issued nor the application rejected within two months, the applicant may commence the food business after the expiry of that period.

The provision also restricts the authority from subsequently refusing the licence in the circumstances covered by the proviso, although an improvement notice may still be issued where the statutory conditions are met.

However, this provision must not be misunderstood.

It does not permit a business to begin operating immediately after submitting an application. Nor should it be treated as an automatic exemption from every other applicable requirement.

The applicant must establish that the precise statutory conditions have been satisfied.

From a practical standpoint, obtaining the appropriate authorisation before the first commercial sale remains the safer approach.

10. Perpetual Validity of FSSAI Licences: What Businesses Must Continue Doing

One of the most significant changes introduced in 2026 is perpetual validity.

Under the amended Regulation 2.1.7, a licence or registration certificate remains valid unless it is suspended, cancelled or surrendered.

This removes the earlier requirement for periodic renewal.

However, the following obligations continue:

• Payment of the applicable annual licence or registration fee.
• Submission of applicable statutory returns.
• Compliance with hygiene and sanitary requirements.
• Maintenance of relevant business and food safety records.
• Compliance with licence conditions.
• Obtaining appropriate modifications when business activities change.

Most importantly, failure to pay the applicable annual fee or submit an applicable return by the due date can result in deemed suspension.

During suspension, the operator cannot carry out food business activities.

Therefore, every food business should maintain a compliance calendar even though its licence no longer requires periodic renewal.

11. FSSAI Compliance Checklist Before Launching a Food Business

Before accepting the first order, a founder should examine the following matters.

Compliance Area	Action Required
Business classification	Identify the correct kind of food business.
Turnover	Calculate the relevant annual turnover.
Licence category	Determine whether registration, State Licence or Central Licence applies.
Premises	Identify every kitchen, manufacturing unit, warehouse and applicable storage facility.
Product classification	Check whether the food product falls under a specialised regulatory category.
Application	Submit the appropriate Form A or Form B through FoSCoS, as applicable.
Hygiene	Establish the required Schedule 4 hygiene and sanitary systems.
Online sales	Examine the additional e-commerce licensing and display obligations.
Packaging and labels	Ensure compliance with applicable labelling and display regulations.
Continuing compliance	Maintain annual fee, return and statutory compliance reminders.

The application and eligibility information is available through the official Food Safety Compliance System (FoSCoS).

12. Why Legal Compliance Should Precede Commercial Expansion

There is a broader business lesson here.

Entrepreneurs often view licensing as an expense that can be postponed until the business becomes profitable. That is a short-term commercial calculation which may produce long-term legal difficulties.

Consider a startup that has developed a successful packaged food brand. It has secured distribution arrangements, attracted investors and begun selling through multiple online channels.

Six months later, a regulatory inspection reveals that the business selected an incorrect licensing category and failed to obtain the authorisation required for its online operations.

The consequences may extend beyond the immediate penalty.

The company may have to address regulatory notices, correct its licensing structure, modify its operations and deal with questions from investors, distributors and commercial partners.

In a competitive market, regulatory uncertainty can become a serious commercial disadvantage.

A properly structured FSSAI compliance framework, on the other hand, provides greater operational certainty and makes future expansion easier to manage.

It is particularly important for businesses planning to raise investment, enter franchise arrangements, supply institutional buyers or expand across multiple States.

13. Frequently Asked Questions About FSSAI Licence and Registration

1. Is FSSAI Registration Mandatory for a Home-Based Food Business?

Yes. A home-based food business is not automatically exempt from FSSAI requirements. It must obtain the appropriate registration or licence based on its activities and eligibility.

2. What Is the FSSAI Registration Turnover Limit in 2026?

For applications made from 1 April 2026, the general Basic Registration threshold is annual turnover up to ₹1.5 crore, subject to the applicable activity-specific eligibility criteria.

3. What Is the Turnover Limit for an FSSAI State Licence?

The general State Licence category applies to eligible businesses with turnover above ₹1.5 crore and up to ₹50 crore.

4. When Is a Central FSSAI Licence Required?

A Central Licence generally applies to businesses with turnover exceeding ₹50 crore. Certain specified activities, including e-commerce, also require a Central Licence irrespective of turnover.

5. Does Every Cloud Kitchen Need a Separate FSSAI Licence?

Each physical food business premises must be appropriately authorised. A business operating several kitchens cannot automatically use one premises-specific authorisation for every location.

6. Does a Food Seller on an Online Marketplace Need Its Own FSSAI Licence?

Yes. The platform’s licence does not replace the seller’s own food business authorisation. The seller must also examine whether its activities fall within the e-commerce Central Licence category.

7. Does Selling Food Through Your Own Website Require a Central Licence?

The FoSCoS eligibility framework identifies e-commerce as a Central Licence category without a turnover restriction. A business selling food through its own website or application should examine this requirement before commencing online sales.

8. Are FSSAI Licences Now Valid Permanently?

Yes. Under the 2026 amendment, licences and registrations have perpetual validity unless suspended, cancelled or surrendered. Annual fees and applicable returns must nevertheless be complied with.

9. What Is the Penalty for Operating Without an FSSAI Licence?

Section 63 of the Food Safety and Standards Act, 2006, as amended, provides for a monetary penalty which may extend to ₹10 lakh.

10. Can a Person Be Sent to Jail for Operating Without an FSSAI Licence?

The imprisonment provision formerly contained in Section 63 was removed through the Jan Vishwas (Amendment of Provisions) Act, 2023. However, separate offences involving unsafe food and other statutory violations may still attract imprisonment.

11. Does Perpetual Validity Mean That No Annual Fee Is Payable?

No. The amended regulations retain annual fee obligations. Non-payment can result in deemed suspension of the licence or registration.

12. Can I Start a Food Business While My FSSAI Application Is Pending?

Section 31 contains a limited two-month proviso under specified circumstances. It is not permission to start operations immediately after submitting an application. The statutory conditions must be satisfied before relying on it.

14. Conclusion: FSSAI Compliance Is a Business Foundation, Not an Administrative Formality

The 2026 reforms have substantially simplified the FSSAI licensing framework for many small and medium-sized food businesses. The increase in the Basic Registration threshold to ₹1.5 crore and the introduction of perpetual validity are significant developments.

However, simplification should not be confused with exemption.

Businesses must still identify the correct kind of food business, select the appropriate authorisation, comply with activity-specific Central Licence requirements, obtain the necessary authorisations for their premises and maintain continuing food safety obligations.

For startups, cloud kitchens and e-commerce sellers, the most important lesson is that the licensing question must be answered before commercial operations begin.

A successful food business is not built merely on a good recipe, an attractive brand or a successful online marketing strategy. It must also rest on a sound legal and regulatory foundation.

In my experience, preventive legal compliance is invariably more sensible than attempting to repair regulatory mistakes after a business has expanded.

Launching a Food Business? Don’t Risk Your Business on a Licensing Mistake!

Whether you are launching a food startup, operating a cloud kitchen, manufacturing packaged food or selling through Amazon and other e-commerce platforms, getting your FSSAI Licence and Registration right from the beginning is essential.

An incorrect licence category, an unregistered premises or a missed compliance requirement can expose your business to regulatory action and penalties of up to ₹10 lakh under Section 63 of the Food Safety and Standards Act, 2006.

Don’t wait for a regulatory notice to discover a compliance problem. Get your legal position examined before you start accepting orders or expand your operations.

Speak Directly with Adv. Tarun Choudhury

Supreme Court Advocate | 25+ Years of Legal Experience

Get professional legal guidance on:

• Choosing the correct FSSAI Registration, State Licence or Central Licence.
• FSSAI compliance for startups and food manufacturers.
• Licensing requirements for cloud kitchens and multiple outlets.
• FSSAI Central Licence requirements for e-commerce food sellers.
• Regulatory notices, penalties and food business compliance risks.

Protect your food business. Get the licensing right before you go live.

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Adv. Tarun Choudhury
Supreme Court Advocate
25+ Years of Legal Experience
LegalServiceIndia.com

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Legal Sources and Statutory References

1. Food Safety and Standards Act, 2006, particularly Sections 3(1)(n), 31, 32, 52, 53, 55, 56, 58, 59, 61, 63, 64, 66 and 77.
2. Food Safety and Standards (Licensing and Registration of Food Businesses) Regulations, 2011, as amended.
3. Food Safety and Standards (Licensing and Registration of Food Businesses) Amendment Regulations, 2026, Gazette Notification dated 10 March 2026.
4. FSSAI Order dated 13 March 2026, File No. RCD-01002/1/2021-Regulatory-FSSAI-Part(1), I/36087/2026, concerning revised turnover thresholds effective 1 April 2026.
5. FSSAI FAQs dated 27 March 2026 concerning perpetual validity, migration and revised turnover thresholds.
6. Food Safety and Standards (Licensing and Registration of Food Businesses) Second Amendment Regulations, 2026, Gazette Notification dated 23 June 2026.
7. Jan Vishwas (Amendment of Provisions) Act, 2023, Act 18 of 2023, and Ministry of Health and Family Welfare Notification S.O. 4834(E), dated 7 November 2023.
8. FoSCoS: Official Kind of Business Eligibility Criteria.

Disclaimer: This article is intended for general informational and educational purposes and does not constitute legal advice. The applicable FSSAI requirements may differ depending on the nature of the food business, product classification, premises and commercial arrangements. Businesses should verify the current FoSCoS eligibility criteria and applicable notifications before commencing operations.

Key Takeaways: FSSAI Licence and Registration in 2026

• FSSAI registration or licensing is mandatory: Every Food Business Operator (FBO) must obtain the appropriate FSSAI registration or licence before commencing food business operations, as required under Section 31 of the Food Safety and Standards Act, 2006.
• New turnover thresholds apply from 1 April 2026: The revised framework provides for Basic Registration for businesses with annual turnover up to ₹1.5 crore, State Licence for turnover above ₹1.5 crore up to ₹50 crore, and Central Licence for turnover exceeding ₹50 crore, subject to applicable activity-based requirements.
• Business activity matters as much as turnover: Certain businesses may require a Central FSSAI Licence because of the nature of their activities, even if their turnover is below the general threshold. E-commerce food businesses and other specified categories should check the applicable licensing requirements.
• Cloud kitchens must comply with FSSAI requirements: A cloud kitchen cannot avoid food safety registration or licensing merely because it has no dine-in facility. The applicable licence depends on its business activity, scale and operational structure.
• Multiple outlets may require separate compliance: Food businesses operating from multiple premises must examine the licensing requirements applicable to each location and their overall business operations.
• FSSAI compliance continues after obtaining the licence: Food Business Operators must maintain prescribed records, follow food safety and hygiene standards, and comply with applicable storage, stock rotation and operational requirements.
• Non-compliance can result in serious penalties: Operating without the required licence or violating food safety requirements can expose a business to prosecution, financial penalties and regulatory action.
• Choose the correct licence before starting operations: Selecting the wrong category, overlooking activity-specific requirements or failing to update licensing details can create avoidable compliance risks.
• Startups and online food sellers should review their obligations early: Food startups, manufacturers, cloud kitchens, restaurants and e-commerce sellers should assess their FSSAI requirements before launching or expanding their operations.

Bottom Line: FSSAI registration and licensing are not merely formalities. They are essential elements of lawful food business operations in India. Understanding the applicable licence category, turnover threshold and activity-specific requirements can help businesses avoid regulatory complications and build a compliant food business.

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