- Overview of the Catering Industry
- Types for Catering business license –
- 1) Food Establishment license –
- 2) Alcohol License –
- 3) Other licenses or permits –
- Registration Criteria for the Catering business license or Food Service Establishment
- Basic Registration Procedure
- Documents Required for catering business / Food Service Establishments
- There are some requirements which have to fulfill by the catering or the food service establishment –
- Non-compliance for the catering or food business establishment
- Some penalties the business operators have to pay in case of violation of any rule –
- Frequently Asked Questions
Overview of the Catering Industry
People refer to the catering industry as the hospitality industry which organizes food, drinks and also accommodation for people in school, hospital industry, etc in some cases. However, it may be possible to make a number of distinctions between different types of food and beverage outlets in the catering industry. Catering business license is mandatory.
“Catering in India has now become an integral part of the success of various events and social occasions. It is one of the fastest-growing sectors that has seen the surge in demand across the country and has contributed a major financial share in the last financial year 2018.
Types for Catering business license –
1) Food Establishment license –
To operate in any food establishment like Catering, Food license is necessary to have. Without this license, a penalty will be charged up to Rs 2 lack. General requirements vary but always include inspecting the facility for state compliance. Ensuring staff has the proper training for Food Certification is often mandatory as well.
2) Alcohol License –
It is mandatory for the catering service provider to have an alcohol license if they are serving them in any event. Obtaining this license can take a lot of time. Generally, the background is checked before granting the license. Without this license, it is illegal to serve alcohol in events and can lead to serious consequences.
3) Other licenses or permits –
However, other permits and licenses may be required by local jurisdictions or state agencies. Other licenses like Quality Assurance and Health assurance. It is also very important for the business to obtain because it satisfies the customer mentally when he will hire the services.
1. Food Safety License
2. Health/Trade License
3. Eating House License
4. Environmental Clearance
5. NOC from the Fire Department
6. Signage License
8. Playing of Music in Restaurants.
9. Life License
10. Insurance – Public Liability, Product Liability, Fire Policy, Building & Asset.
11. Shop and Establishment Act.
12. Nominations under PFA Act 1954 Section 17 (2) and rule 12 B of the rules 1955
Registration Criteria for the Catering business license or Food Service Establishment
The Food Business Operator License is a license which is granted by the Food Safety and Standards Authority of India or FSSAI or that provides the business entity to carry on the activities linked to any stage of processing, manufacturing, packaging, transportation, storage, distribution of food, catering services, import and includes food services, sale of food or food ingredients. FSSAI Food Business License is necessary for a catering business.
According to the Food Safety and Standards Authority of India, it is mandatory for the food business operators whose annual income is up to 12 lakhs to obtain a food registration certificate. The certificate is easily obtained by the State Authority or Municipal Authority or can hire a consultant from FSSAI Food License.
But in some cases, units like Railways, Air, and Airports, Seaports, Defence which are under the central government whose turnover is up to twelve lakhs have to mandatorily go for Central Licensing and such business activities are not covered under this registration certificate criteria.
The following Food Business Operator has to follow a certain process to obtain the FSSAI Catering business license. The application form in FORM A along with the photograph and essential documents is to be submitted with the Registration Authority for the grant of the registration certificate. A fee of Rs. 100 is charged for the certification. The next thing is the inspection part which will be done by the authority. They can either reject or grant the certificate after the inspection. If no message is received or no communication is done by the authority within thirty days, the operator can start his business without waiting for any further communication.
To get the FSSAI food business license, the documents linked to the incorporation of the business should be submitted along with address proof, identity or residential proof of the promoters and details as per the terms of application format. The FSSAI food business license for catering businesses is given by the particular State Government. Hence, the application should be submitted to the regional FSSAI office.
Basic Registration Procedure
- Every small FBO or start-up shall register itself with the Registering Authority (RA) by submission of an application Form-A, along with the fees as applicable.
- A Unique Application Reference Number comes to be generated.
- RA may grant or reject the application – with reasons being specified in writing. Within 7 days of the receipt of the complete application.
- Once granted, the FBO may commence the business operations.
- Or, if deemed necessary, the RA may issue a report for inspection. This comes within 7 days. And the date of the inspection must be within 30 days.
- If in the course of the inspection, the inspecting FSO or agency is content, the FSSAI number will be granted.
Documents Required for catering business / Food Service Establishments
- Form A or Form B (Form A for Basic FSSAI Registration & Form B for State and Central FSSAI Registration) – complete and signed
- 2 Passport Sized Photographs
- PAN Card of the FBO Owner/Proprietor/Partner/Director
- Proof of Possession of the Premises (Property Papers – if the property is owned, Utility bills (Electricity or water) or Rent Agreement – if the property is on rent
- Partnership Deed
- Certificate of Incorporation or Articles of Association (AOA) in case of a company
- The complete list of food items the unit will be processing
- The complete FSMS (Food Safety Management System) plan (applicable for FSSAI State or Central Food License only)
There are some requirements which have to fulfill by the catering or the food service establishment –
- The operators should ensure that the location of their business should be free from external pollutants.
- There should be proper and adequate storage in hygienic conditions.
- The cooking methods should ensure fresh food which should be free from any contamination.
- Ths stalls or counters should be clean and hygienic.
- All the staff handling the food department should also maintain personal hygiene.
- Only fresh food should be packed for delivering packaged food.
- The containers used for cooking should be free from dust and other articles.
Non-compliance for the catering or food business establishment
All catering businesses that have operations related to food, have to comply with the rules, as introduced and updated by the FSSAI. These are legal obligations that these FBOs must meet. Food Authority conducts inspections and tests at random, of the food articles or the process. At the time of the inspection, the Food Safety Official (FSO) or the agency is approved to examine the business premises, safety, and quality of the process or the food item.
The checklist, FSO identifies a level for the FBO, as either:
- Compliance (C)
- Partial compliance (PC)
- Non-compliance (NC)
- Not applicable/Not observed (NA)
According to this, a Notice for Improvement may be issued to the FBO. It describes the place or steps where adjustments or changes need to be made. And a time limit is defined for these changes to be completed by. If the FBO fails to incorporate these changes, within the specified time, a Show Cause Notice is given.
Some penalties the business operators have to pay in case of violation of any rule –
- The penalty of up to one lack is payable in case of unhygienic or unsanitary processing or manufacturing,
- The penalty for carrying unregistered food business is up to Rs. 2 lack.
- If the applicant tries to obstruct the food security officer from doing his duty or gives false information, imprisonment up to 3 months and fine up to Rs. 1 lac will be charged as penalty.
Related Article– FSSAI Food License Mandatory for all Food Joints