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Operate in the food business with Food License
A food
license is one of the keys and
mandatory registrations that need to be procured by all kinds of food business
operator (FBO) in India. An FBO is
defined as any kind of public or private business entity that is involved in
any stage of manufacturing, packaging, processing, storing, transporting,
distributing, importing, selling of food services or raw materials, marketing, retailing
etc.s
Why Food
License?
FSSAI (Food Safety and Standards Authority of
India) is the apex body that certifies an entity with the Food safety license. The FSSAI was set up in accordance with the
Food Safety and Standards Act, 2006. The primary objective of the organization is to ensure the availability of
safe and wholesome food that is meant for consumption by human beings. The
license is also an effective method to make FBOs accountable and responsible
for the food quality. Other than safety, the FSSAI also is entrusted with the
task of overseeing that sub-standard food is not sold in the country and that
all articles of food available for consumption are
free from adulteration.
The penalty of operating any of the above-mentioned business without the food
license is enough to attract punishment including imprisonment of up to six months and payment of fine up to Rs. 10 lakh.
Types of FSSAI
Food License
Depending upon the annual turnover of the
business entity and/or size of the operations of the entity, the following types
of license are given:-
1.
Central
license – EOUs, all importers, entities with an annual
turnover of more than Rs. 20 crores, FBOs with operations in more than one
state, manufacturers with large-scale
operations, for example, a meat processing unit with more than 500 kg meat
every day or 150 MT per annum.
2.
State
license – is applicable for a business
that has annual turnover more than Rs. 12
lakh but less than Rs. 20 crore, medium-sized
manufacturing units like a meat processing unit with a capacity to process up to 500 kg meat every day or 150 MT per annum.
3.
FSSAI
registration is meant for smaller scale business that has less than Rs. 12 lakh turnover in a year. For example, a
slaughtering house that slaughters 2 or less than 2 large animals or 10 or less
than 10 small animals or up to 50 poultry
birds every day are eligible for the basic registration.
4.
Railway
license applicable for Konkan Railways
All the above types of FSSAI license
have a maximum validity of five years and
minimum validity of one year.
Procedure for obtaining Food Safety License in India
1.
In order
to apply for the Central food safety
license and the state food license
Form, B needs to be filled up. For the
basic FSSAI registration, Form-A needs to be filed.
2.
In order
to obtain the basic registration and state license, the food license application needs to be made to the regional FSSAI
office of the state government where the operation is based. The Central
license needs to be obtained from the central government.
3.
The
documents that are required differ for all the three types. The common documents
required are –
·
Detailed
list of partners, promoters, members with contact details
·
List of equipment and machinery, the capacity and the horsepower being used.
·
Government
Identity and address proof of the directors, proprietors, partners
·
A complete list of
all food categories being manufactured
·
Ownership
proof of the premises.
·
Rental
agreement and NOC from the owner in case
of rented property.
·
Utility
bills
·
Certificate
of Incorporation, Memorandum and Articles of Association, Partnership Deed.
For Food license online, the FBO needs to
register at the Food Licensing & Registration System (FLRS). After
registration, the operator needs to log in,
fill up the requisite Form online, upload the documents required and make the
payment.
The concerned authorities will review
all documents and the application form. If satisfied the relevant license is
issued. The FSSAI license is a 14-digit number that needs to be printed on the
packaging at all times.
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Get NBFC Registration in India Expert help
Non-Banking Financial Companies (NBFC) are
primarily companies that are involved in financial activities like giving
loans, providing advances, some NBFC’s can receive deposits, acquiring of stocks
and shares, lease, hire-purchase, insurance business and chit business. Though an NBFC and a bank appear similar, there are
few notable differences between the two –
·
An NBFC cannot
issue cheques on itself
·
An NBFC is not
covered under facilities like Deposit Insurance and Credit Guarantee
Corporation.
·
An NBFC cannot
function as a normal bank in terms of
accepting demand deposits.
The Reserve Bank of India has complete
jurisdiction over NBFC’s in India. Hence it is mandatory for an NBFC to acquire the NBFC registration or RBI license before the start of operations except for
ones that are regulated by other bodies like the National Housing Bank,
Insurance Regulatory and Development Authority of India, Securities, and Exchange Board of India, MCA or state
governments.
NBFC
Registration procedure
In order to obtain NBFC
registration from RBI, the company needs to fulfill certain criteria:-
·
The said
NBFC needs to be mandatorily registered with the Ministry of Corporate Affairs
as a private limited company or a public limited company, under the Companies
Act 2013.
·
The
minimum net owned fund of the company needs to be Rs. 200 lakh (2 crores)
·
One of
the full-time directors of the said company needs to be from NBFC or banking
background
·
The CBIL
records of Directors need to be absolutely clean.
·
The
principal business of the company needs to be a financial
activity which means that the financial assets of the company are more than 50% of the total assets of the
company and the income so derived from these assets should be more than 50% of
the total income of the company.
NBFC
Registration process constitutes of the following
key steps:-
a.
The
process starts with the approval of the
company name from MCA. Post name approval, the NBFC needs to be registered with
the Registrar of Companies. The Memorandum of Association and Articles of
Association need to be drawn up before Incorporation. The object of the NBFC
needs to be clearly mentioned in INC-1 as financing.
b.
The
newly formed NBFC now is required to open a company bank account and the
subscription amount needs to be deposited in the new account.
c.
To meet
the criteria of Rs. 2 crores as net owned
funds, the newly formed NBFC attain this amount by issuing shares to existing
shareholders or new shareholders.
d.
The net
owned fund of Rs. 2 crores once achieved
needs to be deposited with the bank as a fixed deposit.
e.
An application
form in the prescribed format needs to be now submitted online at RBI Website
(COSMOS) or offline at the regional office of RBI. For applicants applying
online, the hardcopy of the application form along with the required documents needs to be submitted at the regional office of
RBI.
f.
The
documents that need to be submitted are:-
·
Copies
of the Incorporation certificate
·
Copies
of Memorandum and Articles of Association highlighting the principle business
clause.
·
Individual
director profiles
·
PAN card
copy of the NBFC
·
The
fixed deposit certificate and bankers certificate copies
·
Banker’s
report
·
Board
resolution to the effect of the authorized
signatory; absence of public deposit; no NBFC activity is being carried out;
formulation of the code of Fair Practises.
·
Statutory
auditors certification with respect to the NBFC not holding public deposit; not
carrying out NBFC operations and confirming Net owned funds;
·
Complete
details of the bank and company account
·
Audited
balance sheet and P&L statement of last three years or for period
available.
·
Detailed
information on the Management
The requisite NBFC registration fee also needs to be deposited online for
processing of the application. All the above documents and other related
documents are scrutinized closely by RBI
before the NBFC registration or RBI
license is granted.
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