For now, opening a food stall in India is not a cakewalk, but it is sweet. The Food Safety and Standards Authority of India (FSSAI) clearance is certainly one of the essential prerequisites. Be it a small home kitchen or a big factory, you need to understand the difference between the FSSAI license and FSSAI registration for the well-being of your business, and so that you don’t have to run after the law.

In this article, we will explain the main distinctions to help you decide which one fits your food business needs.

What is FSSAI Registration?

FSSAI Registration is a basic food safety license which is mandatory for small-scale food business operatorsFBOs. It is suitable for Startup, Small Retailer, Home-Based Food Seller, Minor Vendor and Stall Holder.

  • Businesses that typically require FSSAI registration include:

  • Home-based food businesses

  • Small retailers and hawkers

  • Food stall operators

  • Small cottage industries  can also be included in these.

  • Businesses that turn over up to ₹12 lakh per year

After the approval, a 14- digit registration number is issued to the business, which is to be printed on the food packages.

The difference in this class of registration is a small food establishment that is registered under the Food Safety and Standards Act, and it will have really basic hygiene and safety for small food businesses.

What is an FSSAI License?

The necessity of an FSSAI license for food businesses on a large and medium scale is non-negotiable. It is more comprehensive than basic registration and involves stricter compliance and documentation.

There are two types of FSSAI licenses:

  • State License: Applicable for annual turnover of business from ₹12lakhs to ₹20crores.

  • Central License: When the turnover of business is more than 20 crores, or if it is a multi-state business, or engaged in importing or exporting of food or dealing with government agencies.

Businesses That Require an FSSAI Licence?

  • Food manufacturers and processors

  • Large restaurants and chains

  • Exporters and importers

  • Large warehouses and distributors

  • Food sellers on e-commerce

The application process for the license is document-intensive, with details of food safety management systems along with premises ownership proof.

Key Differences Between FSSAI & FSSAI LICENSE

Here are the main differences for every food entrepreneur:

1. Eligibility Criteria: 

  • FSSAI registration is for small-scale businesses with a turnover of up to ₹12 lakh. The FSSAI license is for the large scale and medium businesses with a turnover of above ₹12 lakhs.

2. Scale of Operations

  • Registration suits small or local operations.

  • A license is required for larger, multi-state, or export-oriented operations.

3. Documentation

  • Registration requires minimal paperwork.

  • A license requires detailed documents, including identity proof, address proof, business constitution documents, and safety management plans.

4. Government Fees

  • Registration fees are lower.

  • License fees are higher depending on the category (state or central).

5. Compliance Requirements

  • Registration required basic hygiene, but compliance with hygiene was not too strict at the shelter. Formal sanctions necessitate more rigorous inspections and governmental supervision.

Why FSSAI Approval is Important

Obtaining FSSAI registration or a license is not just a legal formality—it builds trust. Customers today are more aware of food safety standards. Displaying your FSSAI number on a product reassures customers that your​​​​ business is under the purview of the government.

Non-compliance may lead to heavy fines, closure of business, or even legal proceedings. So, selecting the right kind of approval at the outset avoids wasting  time, money, and legal hassles.

How to Select the Appropriate? Consider the factors below to select either FSSAI registration or an FSSAI licence :

  • Your annual turnover

  • Nature and scale of operations

  • Expansion plans

  • Whether you operate in multiple states

If you are just beginning on a small scale, then FSSAI registration will be good enough. But then, if you wish to grow down the track or scale quickly, getting the right licence - from the start - could be a case of "don't shut up shop to get licensed/registered/etc." later on.

📌Also read What the FSSAI License  and its uses is the FBO Industry  

Conclusion

Every food business in India should be aware of the difference between FSSAI registration and an FSSAI license. Both FSSAI license and registration are mandatory, but at different levels of business. Choosing the correct category not only fulfils the legal obligation but also enhances brand credibility.

After assessing your eligibility properly, apply for relevant FSSAI registration or license to start or grow a food business with confidence and the means to comply with the law.