Legal basis: Section 31, Food Safety and Standards Act, 2006 — Effective: ongoing since 5 August 2006. Food Safety and Standards (Licensing and Registration of Food Businesses) Amendment Regulations, 2026 (F. No. RCD-01002/1/2021-Regulatory-FSSAI-Part(1)) — Effective: 1 April 2026. Source: FSSAI Advisory Portal. Last reviewed by CA Harun Raaj: September 2026.
Key point: Every food business operator, regardless of turnover, must hold either a registration or a licence under Section 31 of the FSS Act, 2006 — the April 2026 threshold revision changes which tier applies, it does not exempt anyone from the obligation.
The founder who didn't think FSSAI applied to them
Shreya's Pvt Ltd company had been selling handcrafted trail mix on its own website and through Amazon Fresh for almost two years. Annual turnover: ₹68 lakh. She assumed that because she was "too small," FSSAI was for factories and restaurant chains — not a founder operating from a 500 sq ft unit with three staff. Then came the show-cause notice.
FSSAI's enforcement arm runs district-level food safety officers who can trace food business operators through GST registrations and e-commerce seller onboarding data. Shreya's notice cited Section 63 of the Food Safety and Standards Act, 2006, with a maximum fine of ₹5 lakh and the possibility of imprisonment up to six months. The Pvt Ltd was also at risk of having its Amazon seller account frozen pending compliance verification.
The mistake was simple: Shreya thought FSSAI was a size test. The law makes no such distinction. Every food business operator — regardless of turnover, number of employees, or sales channel — must hold either a registration or a licence under Section 31 of the FSS Act, 2006. The April 2026 threshold revision changes which category you fall into. It does not create any new category of operator who is entirely exempt from the regulatory framework.
What the Food Safety and Standards Act 2006 actually requires
The mandatory registration and licensing obligation (Section 31)
Section 31(1) of the Food Safety and Standards Act, 2006 is unambiguous: no person shall commence or carry on any food business except under a licence granted by the licensing authority. The only narrow exemption under Section 31(2) covers petty manufacturers — those who manufacture food products by themselves, at retail level, and do not employ any worker. Even petty manufacturers in this category must obtain a registration; they are not exempt from the regulatory framework entirely.
A Pvt Ltd company that employs even one person in its food handling, packaging, or processing is not a petty manufacturer. It must be either registered or licensed. The structure of the compliance obligation is governed by the Food Safety and Standards (Licensing and Registration of Food Businesses) Regulations, 2011 (the "Licensing Regulations"), as substantially amended by the Amendment Regulations, 2026 effective 1 April 2026.
The three-tier structure — revised as of 1 April 2026
The Food Safety and Standards (Licensing and Registration of Food Businesses) Amendment Regulations, 2026 (F. No. RCD-01002/1/2021-Regulatory-FSSAI-Part(1)), notified on 10 March 2026 and effective from 1 April 2026, revised the annual turnover thresholds that determine which of the three regulatory tiers applies to a food business operator:
A food business doing ₹80 lakh in annual turnover, which previously required a State Licence under the old ₹12 lakh threshold, now qualifies for Basic Registration — a significantly simpler and less document-intensive process.
Businesses always requiring a Central Licence regardless of turnover include importers of food products, operators with premises in more than one state, operators with head offices in one state and manufacturing units in another, and any business notified by the central government. For these businesses, the turnover thresholds are irrelevant — Central Licence is mandatory.
Perpetual validity from April 2026
One of the most significant operational changes under the Amendment Regulations, 2026 is the shift to perpetual validity. Previously, FSSAI licences and registrations had to be renewed every 1 to 5 years. From April 2026, licences and registrations granted under the revised framework do not expire — provided the food business operator pays the annual fee prescribed by FSSAI, complies with the conditions of licensing including safety inspections, and does not have the licence suspended or cancelled for cause.
This eliminates the risk of inadvertent lapse through non-renewal, which was a common enforcement exposure before 2026. It also means FSSAI enforcement activity is now continuous rather than concentrated around renewal deadlines.
Application forms
- Form A: Used to apply for Basic Registration on the FoSCoS portal (foscos.fssai.gov.in). Simpler documentation — address proof, identity proof of the food business operator, and a basic declaration of food safety practices.
- Form B: Used to apply for a State Licence or Central Licence. Additional requirements include a food safety management system (FSMS) plan, site plan of the premises, a list of food products to be manufactured or processed, machinery and equipment details, and a water test report.
Both forms are filed electronically on the FoSCoS portal. Basic Registration is typically processed within 7 working days; State and Central Licences take 30 to 60 days depending on the jurisdiction and completeness of documentation submitted.
Practical implications: what happens when founders ignore this
Section 63 penalty — operating without a licence
Section 63 of the FSS Act, 2006 provides that any person who manufactures, sells, stores, distributes, or imports any article of food without obtaining the required licence (other than those exempted under Section 31(2)) shall be punishable with imprisonment for a term that may extend to six months and with a fine that may extend to ₹5 lakh.
This is not a theoretical exposure. Food safety officers at the district and state level conduct routine inspections of e-commerce fulfilment warehouses, dark kitchens, food processing units, and retail food outlets. FSSAI can and does access seller registration data from major e-commerce platforms, which means food business operators who sell online without a valid FSSAI registration are increasingly identifiable through cross-referencing with GST databases.
Annual return obligation — Form D-1
Manufacturers and importers holding a State Licence or Central Licence must file an annual return in Form D-1 under Regulation 2.1.13(1) of the FSS (Licensing and Registration of Food Businesses) Regulations, 2011. The Form D-1 annual return covers the financial year ending 31 March and must be filed by 31 May of each year through the FoSCoS portal.
The annual return discloses the quantity of food products manufactured or imported, details of packaging materials used, and annual turnover figures. Late filing penalties apply from the day after the 31 May deadline under Regulation 2.1.13(3) of the Licensing Regulations, with no currently prescribed upper cap on the total accrued penalty.
Basic Registrants are not required to file Form D-1. This is one of the most tangible compliance reliefs for smaller food businesses that now qualify for Basic Registration under the revised April 2026 thresholds — they neither need to renew their registration nor file an annual return.
Risk to Pvt Ltd directors
Because the violation under Section 63 can attract personal imprisonment, the liability exposure for directors is direct — particularly for executive directors who manage food business operations. A director who knew or ought to have known about the non-compliance cannot disclaim personal liability by pointing to the Pvt Ltd structure. This parallels the officer-in-default liability framework under the Companies Act, 2013, which holds directors personally accountable for regulatory defaults within their knowledge or control.
Due diligence and funding risk
FSSAI non-compliance has become a standard red flag in due diligence for funding rounds and bank credit facilities. Venture capital funds and banks conducting regulatory due diligence for food-sector investments routinely verify FSSAI licence status. A missing or lapsed FSSAI registration — particularly where the business has been operating for more than a few months — is treated as a material compliance gap that can delay deal closure or result in representations and warranties that expose the founders personally.
Step-by-step: what to do
- Determine your registration category. Calculate your food business annual turnover for the most recently completed financial year. Apply the thresholds effective 1 April 2026: up to ₹1.5 crore → Basic Registration; ₹1.5 crore to ₹50 crore → State Licence; above ₹50 crore → Central Licence. If you import food or operate premises across multiple states, you need a Central Licence regardless of turnover.
- Create an account on the FoSCoS portal. Go to foscos.fssai.gov.in and register the food business operator account. The portal handles all registration and licensing applications electronically, including document uploads and status tracking.
- File the correct form. Use Form A for Basic Registration and Form B for State or Central Licence. Ensure the application correctly describes all food categories you handle — manufacturing, retail, storage, transport, or import — as the licence covers only the activities declared.
- Register each premises separately. A Pvt Ltd with its registered office in Bengaluru and a food processing unit in Pune needs separate FSSAI registrations for each location. One registration does not cover multiple addresses or multiple states.
- Obtain your FSSAI food licence and registration before commencing food operations. Section 31(1) uses the words "shall not commence" — the obligation arises before the business starts, not after. A food business that began operations without FSSAI and then seeks to regularise faces a significantly more difficult enforcement interaction than one that applied at the start.
- For State and Central Licencees: file Form D-1 by 31 May. Once you hold a State or Central Licence, your FSSAI annual return (Form D-1) must be filed by 31 May each year for the preceding financial year (April to March). This obligation continues even in years where turnover has dropped — the obligation tracks the licence category, not current-year turnover.
- Integrate FSSAI into your annual compliance calendar. FSSAI annual fee payments, the Form D-1 deadline, and mandatory food safety management system documentation should sit alongside your ROC filings, GST returns, and income tax obligations. An annual compliance package review is a practical way to identify gaps across all regulatory obligations at once.
I'm CA Harun Raaj. If this affects your company's compliance calendar, reach out.
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See Also
Frequently asked questions
Does FSSAI apply to us if we sell food only through Swiggy Instamart and Amazon Fresh?
Yes. Online food sellers, whether through their own website or through third-party e-commerce platforms, are food business operators under the FSS Act, 2006. The channel of sale does not affect the licensing obligation under Section 31 — you must hold a valid registration or licence for the premises from which you store, pack, label, or process food products.
Do the new turnover thresholds apply if our Pvt Ltd processes food for export?
No. Exporters require a Central Licence from FSSAI regardless of annual turnover, as businesses engaged in the import or export of food products are categorised at the Central Licence level automatically. The ₹50 crore threshold introduced by the Amendment Regulations, 2026 applies only to domestic food businesses assessed purely on turnover.
What changes for a State Licence holder if turnover is ₹90 lakh and now falls under Basic Registration?
Under the threshold revised effective 1 April 2026, a turnover of ₹90 lakh (under ₹1.5 crore) now qualifies for Basic Registration rather than a State Licence. The existing State Licence remains valid under the perpetual validity framework and does not expire or get cancelled automatically; re-categorisation to Basic Registration can be sought when the next annual fee is paid, after which the Form D-1 obligation ceases.
What happens if we file Form D-1 after the 31 May deadline?
Regulation 2.1.13(3) of the FSS (Licensing and Registration of Food Businesses) Regulations, 2011 prescribes penalties for late filing of the annual return, accruing from the day after the 31 May deadline. There is currently no notified upper cap on this penalty, and FSSAI has used non-filing as a ground for licence suspension in enforcement proceedings.
Is a petty manufacturer exempt from FSSAI registration under Section 31(2)?
No, not entirely. Section 31(2) exempts only petty manufacturers who manufacture food themselves at retail level and employ no worker, and even they must obtain a registration rather than being exempt from the regulatory framework altogether. A Pvt Ltd company that employs even one person in food handling does not qualify as a petty manufacturer.
Do we need a separate FSSAI registration for each business premises?
Yes. Under the Licensing Regulations, one registration or licence does not cover multiple addresses or multiple states — a company with its registered office in one city and a food processing unit in another needs separate FSSAI registrations for each location.
What is the penalty under Section 63 for operating without an FSSAI licence?
Section 63 of the FSS Act, 2006 provides that manufacturing, selling, storing, distributing, or importing food without the required licence — other than the narrow exemption under Section 31(2) — is punishable with imprisonment up to six months and a fine up to ₹5 lakh. Directors who knew or ought to have known about the non-compliance carry direct personal exposure.
Do Basic Registrants need to file the Form D-1 annual return?
No. The Form D-1 annual return requirement under Regulation 2.1.13(1) applies to manufacturers and importers holding a State Licence or Central Licence. Basic Registrants are not required to file Form D-1, which is one of the tangible compliance reliefs available to smaller food businesses under the revised April 2026 thresholds.
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