Selling a food business involves several legal formalities, and one of the most important steps is transferring the FSSAI license to the new owner. The food licence issued by the Food Safety and Standards Authority of India (FSSAI) is mandatory for operating a food-related business. Whether you hold a central FSSAI license, an FSSAI state license, or a basic FSSAI food registration, the transfer process ensures that the business continues operating legally under the new ownership.
This blog will explain the process of transferring an FSSAI license, the necessary documents, and key things to remember when selling your food business.
Why is Transferring an FSSAI License Important?
When a food business is sold, the FSSAI License remains registered under the original owner’s name unless it is officially transferred. Here’s why transferring the food licence is important:
Legal Compliance
Operating a food business without a valid FSSAI license is illegal. If the new owner does not transfer the existing license, they may face legal action.
Seamless Business Continuity
If the license is not transferred, the new owner may need to apply for a fresh FSSAI food registration, which can take time. Transferring the license ensures there are no operational delays.
Avoiding Cancellation
The FSSAI state license or Central FSSAI License must be linked to the correct owner. If the business is sold but the license is not updated, the FSSAI may cancel it, causing disruptions.
Maintaining Customer Trust
A valid food licence assures customers that the business follows food safety regulations. If the license is not transferred, customers may lose trust in the business.
Types of FSSAI Licenses and Their Transferability
Before transferring the FSSAI license, it’s important to understand which category your license falls under:
- FSSAI Food Registration (Basic) – For small businesses with an annual turnover of up to ₹12 lakh.
- FSSAI State License – For businesses with a turnover between ₹12 lakh and ₹20 crore.
- Central FSSAI License – For large-scale food businesses operating across multiple states or with a turnover exceeding ₹20 crore.
The transfer process applies to all these categories but must be done carefully to ensure compliance.
Step-by-Step Process to Transfer an FSSAI License
Step 1: Submit an Application for Transfer
The first step is to apply for a license transfer through the FoSCoS (Food Safety Compliance System) portal. The seller or their legal representative must submit a transfer request to the FSSAI.
Documents Required for Transfer Application:
- A formal application for license transfer
- Copy of the existing food licence
- Business sale agreement or legal proof of ownership transfer
- Identity proof of the new owner (Aadhaar, PAN, etc.)
- Address proof of the new owner
- NOC (No Objection Certificate) from the current license holder
Step 2: Payment of Transfer Fees
The new owner may need to pay a nominal transfer fee, depending on the type of FSSAI license and the validity period remaining.
Step 3: FSSAI Authority Verification
Once the application is submitted, FSSAI officials will review the documents and may conduct an inspection of the business premises.
Step 4: Approval of License Transfer
If the verification is successful, the FSSAI will approve the transfer and issue a new license in the new owner's name. The updated FSSAI food registration or FSSAI State License will be available on the FoSCoS portal.
What If the Previous Owner is Unavailable?
In some cases, the previous owner may not be available due to circumstances such as death or business disputes. In such situations:
- The legal heir or successor must provide proof of ownership transfer.
- If the owner is deceased, a death certificate and legal succession proof must be submitted.
- If the business is transferred due to a partnership change, the partnership agreement or dissolution deed must be provided.
Common Mistakes to Avoid When Transferring an FSSAI License
Not Initiating the Transfer Early
Delaying the transfer can lead to business interruptions, as the FSSAI may not recognize the new owner.
Missing Important Documents
Submitting incomplete documents can result in application rejection. Ensure all necessary paperwork is in place before applying.
Ignoring License Renewal Dates
If the FSSAI license is close to expiration, it should be renewed before transferring to avoid additional steps.
Assuming Automatic Transfer
The food licence does not get transferred automatically when a business is sold. A formal request must be submitted to the FSSAI.
Can a New Owner Apply for a Fresh FSSAI License Instead of a Transfer?
Yes, the new owner can apply for a fresh FSSAI state license or central FSSAI license registration instead of a transfer. However, applying for a new license can be time-consuming and may require additional documentation. Transferring an existing license is often a faster and more convenient option.
What Happens If the FSSAI License is Not Transferred?
If the FSSAI license is not transferred after selling a business:
- The new owner may be legally liable for operating without a valid license.
- The FSSAI may cancel the existing food licence due to incorrect ownership details.
- The business may face penalties or fines.
- The new owner will have to apply for a fresh FSSAI food registration, which can delay operations.
FAQs
- How long does it take to transfer an FSSAI license?
The transfer process usually takes between 15 to 30 days, depending on the verification process and the completeness of the submitted documents.
- Can a business continue operations while the license transfer is in process?
Yes, the business can continue running as long as the transfer application has been submitted and is under process. However, it is recommended to complete the transfer as soon as possible to avoid legal risks.
- What if the new owner wants to expand the business after the transfer?
If the new owner wants to expand the business, they may need to upgrade their FSSAI state license to a central FSSAI license or apply for additional registrations based on the new operations.
Conclusion
Transferring an FSSAI license is a crucial step when selling a food business. It ensures legal compliance, a smooth transition, and uninterrupted operations. Whether you have a central FSSAI license registration, an FSSAI state license, or a basic FSSAI food registration, following the correct transfer process is essential.
By initiating the transfer early, ensuring proper documentation, and complying with FSSAI regulations, you can avoid legal issues and ensure a hassle-free business transition.
If you need assistance with FSSAI license transfer, consulting a legal expert or FSSAI registration service provider can help simplify the process.
