What Happens If a Business Operates Without FSSAI Registration in India?
Introduction
In India, the food industry is one of the most rapidly growing sectors, and with this growth comes a strong need for safety and regulation. The FSSAI Licence Registration in India is a mandatory requirement for all food business operators (FBOs) under the Food Safety and Standards Authority of India (FSSAI). Whether you run a restaurant, a packaged food company, or a small home-based catering service, obtaining FSSAI Registration is essential to ensure compliance with food safety laws.
But what happens if a business operates without an FSSAI licence? Let’s explore the serious legal, financial, and reputational consequences of non-compliance.
What Is FSSAI Licence Registration in India?
The FSSAI Licence Registration in India is governed by the Food Safety and Standards Act, 2006, which ensures that all food products meet safety and quality standards before reaching consumers.
Every food business — from manufacturers and distributors to retailers and exporters — must obtain FSSAI registration or licence depending on their business size and turnover.
Types of FSSAI Licences:
Basic FSSAI Registration – For small food businesses with an annual turnover below ₹12 lakh.
State FSSAI Licence – For medium-sized businesses with a turnover between ₹12 lakh and ₹20 crore.
Central FSSAI Licence – For large-scale businesses or those involved in import/export with a turnover above ₹20 crore.
Legal Requirement Under FSSAI Act
As per Section 31(1) of the Food Safety and Standards Act, 2006, no person shall commence or carry on any food business without obtaining an FSSAI registration or licence. This means that operating without one is a direct violation of the law.
The FSSAI ensures that food businesses adhere to safety norms to protect public health. Hence, registration acts as a guarantee that the products are safe for consumption.
Consequences of Operating Without FSSAI Registration
1. Legal Penalties and Fines
Operating a food business without a valid FSSAI Registration can lead to severe penalties. Under Section 63 of the FSSAI Act, any person or entity found running a food business without registration may face:
Imprisonment up to 6 months, and
A fine of up to ₹5 lakh.
The authorities can also seize or shut down the business premises if the violation continues.
2. Business Closure
The Food Safety Officers (FSOs) have the right to inspect any food business. If they find that a company is operating without an FSSAI licence, they can immediately issue a prohibition order, leading to temporary or permanent closure until compliance is achieved.
3. Product Seizure and Recall
Without a valid FSSAI licence, food products are considered unauthorized and unsafe for sale. The authorities may seize such products or order their recall from the market, causing massive losses to the business.
4. Damage to Brand Reputation
In today’s digital era, reputation is everything. Consumers increasingly trust brands that display their FSSAI licence number on packaging and marketing materials. Operating without registration can lead to loss of credibility, negative publicity, and reduced consumer trust, which can take years to rebuild.
5. Ineligibility for Business Expansion
Without an FSSAI Licence Registration in India, a business cannot apply for government tenders, export licences, or even partnerships with major retailers and food delivery platforms like Zomato or Swiggy. This limits the business’s ability to grow and expand.
Benefits of Having FSSAI Registration
While the penalties for non-compliance are severe, obtaining an FSSAI licence comes with multiple benefits:
Consumer Trust: Displays commitment to quality and safety.
Legal Protection: Ensures smooth operations without fear of penalties.
Business Growth: Helps in expanding across states or exporting products abroad.
Brand Value: Enhances your brand’s credibility and visibility in the market.
How to Obtain FSSAI Licence Registration in India
The process of getting FSSAI Registration is simple and can be done online through the official FSSAI portal.
Steps to Apply:
Determine the type of licence (Basic, State, or Central) based on turnover and business scale.
Submit Form A or B on the FSSAI portal.
Upload required documents, including identity proof, business address proof, and food category details.
Pay the applicable fee.
Await inspection (if required) and issuance of the registration certificate with your 14-digit FSSAI number.
Conclusion
Operating a food business without FSSAI Licence Registration in India is not just illegal—it’s risky and harmful to your brand’s credibility. Non-compliance can lead to hefty fines, imprisonment, and business shutdowns.
To safeguard your business and build consumer trust, ensure that you obtain the appropriate FSSAI Registration before starting operations. Compliance not only helps you avoid legal trouble but also opens the door to greater opportunities in India’s booming food industry.
