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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.


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.