Sector-specific licences & permits: e.g., food business (FSSAI), manufacturing, export houses

All businesses must operate within a regulatory framework; however, certain industries are highly regulated in terms of licensing, permits, and compliance requirements because of public safety, health, environmental, and/or international trade issues.

 

For sector-specific businesses, such as food processing units, manufacturing plants, and export houses, getting the right licences is not only a question of legal compliance but also of operational credibility.

 

This guideline provides an overall view of the main license, permission, and compliance requirements related to FSSAI for food businesses, manufacturing companies, and export houses, coupled with best practices to deal with them efficiently.

 

Why Sector-Specific Licences Are Crucial

 

Safety standards, including food safety, workplace safety

 

• Safety standards (food safety, workplace safety)

• Environmental regulations

• Quality requirements

• International trade rules

• Industry-specific legislation

• Consumer protection norms

 

Loss of or failure to renew such licences has the following effects:

 

• Penalties and fines

• Suspension of activities

• Seizure of goods

• Loss of export/import privileges

• Criminal liability of the directors/owners

• Damage to brand reputation

 

Food Business Licences & Permits (e.g., FSSAI)

 

• Applies to: Restaurants, food manufacturers, distributors, cloud kitchens, food logistics, catering units, packaged food brands.
• Key Requirement: FSSAI Registration / Licence Under the Food Safety and Standards Authority of India, every food business operator is required to obtain:

1. Basic Registration (small operators)

2. Medium-scale operations - State Licence

3. Central Licence (large-scale, exporters, importers, multi-state operations)

• What it covers:

1. Production

2. Processing

3. Packaging

4. Storage

5. Distribution

6. Sale

• Additional FSSAI Requirements:

1. Food safety audits

2. Hygiene & sanitation standards

3. FSMS plan (Food Safety Management System)

4. Correct food labelling with the FSSAI number

5. Recordkeeping for raw materials & suppliers

6. Product testing at NABL-certified labs

• Common supporting licences for food businesses:

1. Health/Trade Licence from municipal bodies

2. Fire NOC

3. Consent from the Pollution Control Board (PCB)

4. Factory License if manufacturing Shop & Establishment registration

5. Shop & Establishment registration

 

Manufacturing Units: Key Industrial Licences & Permits

 

• Applies to: Factories, processing units, chemical plants, engineering units, textile mills, electronic manufacturers etc.

The manufacturing processes require various licences related to labour, environmental, and safety issues.

• Factory Licence

Issued under the Factories Act, required for any premises with:

1. A minimum number of workers, that is

2. Power-driven machinery

• Ensures compliance with:

1. Worker safety

2. Building and safety standards

3. Occupational health requirements

• Approvals of Pollution Control Board (PCB)

The following must be obtained by industries:

1. Consent to Establish (CTE)

2. Consent to Operate (CTO)

Covers:

1. Air pollution

2. Water discharge

3. Waste management

4. Hazardous materials

• Fire Safety NOC

1. Ensures correct fire-safety systems and adequate evacuation mechanisms.

• Trade Licence

1. Issued by local municipal authorities.

• GST Registration

1. Tax compliance is compulsory.

• Boiler Licence (if applicable)

1. For units using industrial boilers.

• Electricity/Power Load Approval

1. Industrial electricity connection approval from state electricity boards.

• Labour Law Registrations

1. ESIC

2. EPFO

3. Shops & Establishment Act (if applicable)

4. Professional tax

• Weight & Measurement Certification

1. Necessary in the case of the sale of packaged goods or machinery.

• Specialised Licences (where applicable)

1. Drugs & Cosmetics manufacturing licence

2. BIS certification

3. Textile sector licences

4. Electronics manufacturing approval

5. Explosive or hazardous goods permit

 

Export House Licences & Permits

 

• Applies to: Exporters, importers, trading companies, e-commerce export enterprises, merchant exporters, and manufacturing exporters.
• Key Requirement: IEC (Import Export Code)

1. Issued by DGFT and essentially required by any establishment involved in international trade.

Additional Export-Related Licenses:

• Registration-Cum-Membership Certificate (RCMC)

1. Issued by Export Promotion Councils or Commodity Boards. Required to avail export incentives.

• APEDA / MPEDA / FIEO registrations

Based on product type:

1. APEDA → agricultural products

2. MPEDA → marine products

3. FIEO → general merchandise

• Authorized Economic Operator (AEO) Status

1. For faster customs clearance.

• Licence as Customs House Agent (CHA)

1. Where the company itself arranges the customs clearance.

• Quality & Standard Certifications

Depending on the export market:

1. ISO certifications

2. HACCP (For food exports)

3. CE marking (for EU)

4. FDA approval (for US markets)

• Packaging & Labelling Compliance

1. For logistics, anti-dumping laws, and destination-country rules.

 

Best Practices to Manage Sector-Specific Licences Efficiently

 

Create a Central Licence Repository

 

Store digital copies of:

• All licences

• Certificates

• Renewal receipts

• Approvals

• Inspection reports

With expiry reminders and version control.

 

Implement a Compliance Calendar

 

Set reminders for:

 

• Renewals

• Annual fees

• Compulsory inspections

• Statutory audits

• Environmental testing

• Export documentation deadlines

 

Use Technology for Licence Tracking

 

Adopt compliance management software that supports:

 

• Automated reminders for filing

• Document storage

• Digital workflows

• Multi-location license management

• Custom dashboards

 

Conduct Periodic Internal Compliance Audits

 

Review:

 

• Register entries

• Licence validity

• Conditions of compliance

• Safety and hygiene standards

• Hazardous material handling procedures

 

Maintain Strong Coordination Across Teams

 

Legal, operations, HR, ESG, and finance all need to work tightly together in order to ensure that:

 

• Timely renewals

• Correct documentation

• Compliance during expansions or new product launches

 

Plan Ahead for Inspections

 

Many licenses need physical verification.

 

Prepare by ensuring:

• Updated documentation

• Clean and safe premises

• Logbooks and registers up to date

 

Stay Updated With Changing Regulations

 

Sector-specific rules change often, especially in:

 

• Food safety

• Environmental norms

• Export standards

• Industrial safety

It requires continuous monitoring of government notifications.

 

Common Pitfalls to Avoid

 

• Missing renewal deadlines

• Poor recordkeeping

• Outdated environmental consents

• Non-compliance during expansion or relocation

• Incorrect classification regarding the manufacturing category

• Failure to notify the authorities after changes in ownership/management

• Operating without mandatory approvals

 

These can lead to severe operational and legal consequences.

 

Conclusion

 

Regardless of whether you own a food processing unit, manufacturing plant, or an export house, obtaining the right licences and permits will help you in:

 

• Legal compliance

• Customer and investor confidence

• Smooth operations

• Safety and quality assurance

• Eligibility for incentives and international trade

 

Proactive planning, digital tools, and good governance are the basis for successful management of licenses, enabling business growth and avoiding regulatory roadblocks.

 

Disclaimer

 

The information provided in this blog is purely for general informational purposes only. While every effort has been made to ensure the accuracy, reliability and completeness of the content presented, we make no representations or warranties of any kind, express or implied, for the same. 

 

We expressly disclaim any and all liability for any loss, damage or injury arising from or in connection with the use of or reliance on this information. This includes, but is not limited to, any direct, indirect, incidental, consequential or punitive damage.

Further, we reserve the right to make changes to the content at any time without prior notice. For specific advice tailored to your situation, we request you to get in touch with us.