Selling Homemade Cakes or Other Food items Without having a License or Registration? Beware! 

Are you selling homemade cakes or other food items without having a license or registration? Beware! 

Although this COVID-19 induced pandemic has severely impacted almost every well-established business,  it has, on the other hand, opened doors to many other small-scale and home-based businesses, one among which is a homemade food venture.

The first few weeks of the lockdown saw many women leveraging this opportunity to sell home-cooked food, while others have now attained enough motivation to be the next in the race by selling cakes, breads, diwali and karwachauth hampers and the list is endless. Most of the women however are unaware of its know-how and the required documentation, hence, if you’re one among them, the following information is for you.

For opening up your first ever homemade food venture, you need to complete the registration process (explained below) and get a license to sell any home-cooked food. This is following the Food Safety and Standards Authority of India, aka FSSAI directive, every food unit needs to be licensed and registered by the State Food Safety Department (SFSD). This law has been in force since August 5, 2011, but it was not until this pandemic that more and more people realized it and came to know about the fallouts of infringing it.

As a result of this, the State Food Safety Department has already carried out over 2,300 registrations since March for setting up such businesses, mostly owned by women. Despite this, many other such units are operating either without a license or registration. There are also some instances where people don’t even know about this law, and they end up questioning the food inspecting officers about the need for licensing any home-cooked food.

According to FSSAI, a license is mandatory for sales above 12 lakhs, while mere registration is enough for anything below that. Registrations can be performed through the Food Safety and Standards Authority of India site, the process for which is very easy.

Process for FSSAI registration/license:

FSSAI registration or license is issued based upon the business’s sales, which is divided upon:

• Basic FSSAI registration for sales up to 12 lakhs.
• State FSSAI registration for sales between 12-20 lakhs.
• If the turnover is above 20 lakhs, you can apply for Central FSSAI registration.

The procedure to obtain an FSSAI license for selling homemade food is as follows.

1. Fill a form 

Fill out the form (A or B) from the FSSAI official website and mention the details about your homemade food business. Don’t miss out on any important information.

2. Send your documents

Email your documents, and they’ll prepare your form A or form B, which will take a max of two days.

3. Documents submission

Your license application will be filed to the local FBO (food business operator). This will take 10 working days. 

4. Issue license by FSSAI

FSSAI will issue you a license which will function as your online food license after basic follow-ups with the local food safety department. This will take about 2-4 days, after which you’ll get your official FSSAI license and certificate.

It should be noted that if the manufacturer foul plays during this process or didn’t opt for any license or registration before starting the business, food inspectors can also impose a fine(s) for that, which are as follows.

Fines for not registering the FSSAI license:

1. Fine up to 5 lakhs or imprisonment for up to 6 months or both for serving without any valid license or registration.
2. Detention or penalty for selling adulterated food items, thus compromising with the health of the consumers.
3. Fine of Rs. 3 lakhs fine for selling unlabeled food items, and
4. Fine of Rs. 5 lakhs for selling food without meeting the standard quality as per the FSSAI.
5. A fine of Rs. 1 lakh for selling, packing, storing, distributing, or importing food Items containing any exotic substance without permission.
6. In extreme cases where a death occurs due to consuming any particular food item, a penalty of Rs. 5 lakhs and imprisonment can be levied depending upon the severity of the situation.

This year may have been a little harsh on several businesses, but it has proven to be a blessing in disguise for the others by opening up a whole new market for home-based businesses. Considering the value and backing it’s getting, believe me, starting a homemade food venture can’t be your second choice this time around. There is nothing to feel low about, just follow the above process for your new venture, and such a business at this moment will only allow you to walk with your head up, subsequently promoting the idea of #AtmaNirbharBharat.

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