The law
FSS Act 2006, Sec 31(1)
No person shall run a food business except under a licence (petty businesses register instead)Source
FSS Act 2006, Sec 63
Running a food business without a licence: imprisonment up to six months and fine up to ₹5 lakhSource
FSS (Licensing and Registration of Food Businesses) Regulations 2011, Reg 2.1.1
Petty FBO registers in Form A; authority grants, rejects or orders inspection within 7 days; if no decision within 30 days of inspection order, business may startSource
FSS Licensing Regulations 2011, Reg 2.1.2 to 2.1.4
Licence applied in Form B; authority may ask for missing information within 15 days, applicant replies within 30 days; licence issued in Form C within 60 days and displayed at premisesSource
FSS Licensing Regulations 2011, Reg 2.1.13
Licensed manufacturers and importers file annual return in Form D-1 by 31 May; ₹100 a day penalty for delaySource
FSS (Licensing and Registration of Food Businesses) Amendment Regulations 2026 (gazette 10 March 2026, applied from 1 April 2026)
Registration up to ₹1.5 crore turnover; state licence ₹1.5 crore to ₹50 crore; central above ₹50 crore. Perpetual validity with annual fee; suspension if annual fee or returns are not paid or filedSource
Government fee
Schedule 3 (2017 compendium): registration ₹100 a year; state licence ₹2,000 a year for food service, caterers and most others, ₹3,000 or ₹5,000 for manufacturers by capacity; central ₹7,500. Non-refundable. Source: https://mail.fssai.gov.in/upload/uploadfiles/files/Compendium_Licensing_Regulations.pdf . Whether the 2026 amendment changed these amounts is not confirmed.
Late fee or penalty
Old rule: ₹100 a day for late renewal of a licence (not for registration) and ₹100 a day for a late annual return, Reg 2.1.7 and 2.1.13. Source: https://mail.fssai.gov.in/upload/uploadfiles/files/Compendium_Licensing_Regulations.pdf . From 1 April 2026 non-payment of the annual fee is reported to cause deemed suspension until dues and penalty are paid (secondary sources: https://www.sansalegal.com/post/fssai-licensing-amendment-2026-perpetual-food-license-new-turnover-thresholds-and-compliance-guid).