The three categories, by turnover
FSSAI splits food businesses into three tiers. The primary test is annual turnover, but business type overrides turnover in several situations — which is where applicants most often go wrong.
| Category | Annual turnover | Typical businesses | Government fee |
|---|---|---|---|
| Basic Registration | Up to ₹12 lakh | Home bakers, hawkers, small kirana, tiffin services | ₹100 per year |
| State License | ₹12 lakh – ₹20 crore | Restaurants, mid-size manufacturers, distributors | ₹2,000 – ₹5,000 per year |
| Central License | Above ₹20 crore | Large manufacturers, importers, multi-state operators | ₹7,500 per year |
When Central is required regardless of turnover
This is the part that catches people out. A business turning over ₹15 lakh would normally need a State License — but if it imports even a small quantity of an ingredient, it needs a Central License instead. The following require Central irrespective of how small the turnover is:
- Importers and exporters of any food product
- Businesses operating in more than one state (for the head office)
- E-commerce food business operators
- Operators at airports and seaports
- 100% export-oriented units
- Central government agencies and their catering establishments
What happens if you apply in the wrong category
The application does not simply get corrected. The officer raises a query, you lose two to three weeks, and in many cases the fee paid for the wrong category is not adjustable — you pay again. For a State or Central application that can mean several thousand rupees wasted alongside the delay.
It also creates a compliance problem if the error is not caught. A business operating on a Basic Registration when it should hold a State License is, in the eyes of the Act, operating without the correct license — and the penalty for that runs up to ₹5 lakh.
Working out your turnover correctly
Turnover here means the annual turnover of the food business, not your personal income and not the turnover of unrelated ventures. If you run a restaurant and a separate clothing shop, only the restaurant's turnover counts.
For a new business with no trading history, you declare projected turnover for the first year. Be realistic rather than conservative: if you project ₹10 lakh to stay in the Basic bracket and then turn over ₹18 lakh, you need to upgrade mid-year, which is more work than applying correctly at the start.
Choosing your license term
Every category lets you choose a term of one to five years, with the fee scaling accordingly. Taking a longer term costs more up front but removes the annual renewal effort and, more importantly, the risk of the license lapsing.
A lapsed FSSAI license cannot be renewed. You apply fresh, which means starting the whole process again — including inspection for State and Central — while being unable to operate legally in the meantime. For anything above Basic Registration, a longer term is usually the better decision.
This guide is general information, not advice for your specific situation. Statutory thresholds, fees and due dates change by notification — we confirm the current position for your case before you commit to anything.