Licenses Required for a Packaged Food Start-up in India

If you’ve ever dreamed of launching your own packaged food brand in India, whether it’s granola, ready-to-eat curries, protein bars, or artisanal snacks, you’re not alone. The market is booming. From D2C (direct-to-consumer) brands riding on Instagram to homegrown start-ups getting funded on Shark Tank India, packaged food has never been hotter.

But here’s the catch: unlike clothing or cosmetics, food is something people put directly into their bodies. That makes it one of the most tightly regulated industries. A bad batch of fabric may ruin a shirt, but a bad batch of food can ruin lives. That’s why the government has created a detailed licensing system to ensure what reaches a consumer’s plate is safe, hygienic, and traceable.

So, before you order that first round of custom packaging or approach a distributor, you need to know which licenses your start-up requires. Think of it this way: licenses are less about red tape and more about building trust. When people see that FSSAI number on your label, they know you’re not some fly-by-night operator, but you’re playing by the rules.

Let’s break down the major licenses and approvals you’ll need.

The Big One: FSSAI License

The Food Safety and Standards Authority of India (FSSAI) is the apex body that governs all food businesses in India. If you’re selling packaged foodwhether it’s cookies from a small kitchen or a nationwide brand you always need a FSSAI registration or license.

There are three categories:

• Basic FSSAI Registration – For really small players (annual turnover below ₹12 lakh). Perfect if you’re just testing the market.
• State FSSAI License – For businesses with a turnover between ₹12 lakh and ₹20 crore per year, operating within one state.
• Central FSSAI License – For turnover above ₹20 crore, or if you’re selling across multiple states, or if you’re importing/exporting.

Every packaged food item must display an FSSAI number on the label. Without it, no supermarket or e-commerce platform will even list your product.

GST Registration – Your Tax Passport

Once your sales cross ₹40 lakh (₹20 lakh in some states), you’ll need a GST registration. Even if you’re just starting out but if the plan is to sell on Amazon, Flipkart, or BigBasket, GST is compulsory then. Think of it as your passport in the world of distribution, without it large retailers won’t touch your brand. The good news? It also lets you claim input tax credit on raw materials, so your margins look healthier.

Trade License – The Local Green Signal

Your municipality’s trade license might feel like a small formality, but it’s what tells the local authorities: “Yes, this kitchen or unit is safe to operate.” Inspectors check things like hygiene, waste disposal, and fire safety. Many founders ignore this until they get pulled up during a surprise inspection. Trust me, it’s better to start with clean paperwork than scramble later.

Trademark Registration – Protect Your Brand

You’ve probably spent weeks thinking about the perfect brand name and logo. Now imagine someone copying it and riding on your success. A trademark protects your identity. It’s not just a legal shield, but it’s also something investors look for when they back food start-ups. It tells them, “This founder is serious about building a long-term brand.”

Import–Export Code (IEC) – Keep Future Doors Open

Even if exports aren’t on your radar right now, getting an IEC early is a smart move. Many start-ups begin small, selling locally, and then suddenly get an overseas distributor inquiry. Without an IEC, that door slams shut. It’s a simple registration, but it keeps your growth options wide open.

BIS Certification – Only for Certain Foods

Not every food business needs this, but if you’re into bottled water, milk powder, or infant foods, the Bureau of Indian Standards (BIS) certification is non-negotiable. Customers in these categories are extra cautious, and BIS gives you instant credibility. Skipping it isn’t just risky, it’s illegal.

Pollution Control Board Consent – Don’t Forget the Basics

If you’re running a large factory or processing unit, the State Pollution Control Board will want to know how you’re handling waste. Smaller kitchens often don’t need it, but as you scale, this can become a bottleneck. Getting it sorted early shows that you’re building responsibly, not cutting corners.

AYUSH License – If You’re Selling Wellness

If your packaged food is more in the wellness lanelike ayurvedic juices, herbal powders, or tonics then you’ll need an AYUSH license. Ayurveda is booming globally, but the government wants to ensure authenticity. This license is basically your stamp that says: “This product is the real deal, not a shortcut.”

Labelling & Packaging Rules

This isn’t exactly a license, but compliance here is crucial. FSSAI has strict guidelines:

• Nutritional information panel.
• Veg/non-veg logo.
• Batch number, expiry date, MRP.
• No false claims like “cures diabetes” unless clinically proven and approved.

Your packaging is more than branding. It’s a legal document consumers rely on.

Ongoing Compliance

Here’s the part that many founders underestimate: getting a license is not the end. Most approvals need periodic renewal (typically every 1–5 years). Inspectors can walk in at any time to check your records.

Keep your invoices, stock registers, and hygiene logs updated. A lapse here can cost you fines, suspension, or worse, cancellation of your license.

Pro tip: A compliance officer should be appointed, or at the very least, a digital reminder system should be kept up to date for renewals.

Conclusion: Trust in Licenses, Not Red Tape

These regulations may seem like a mound of paperwork when you’re just starting. Take a different approach, though: each licence is a mark of credibility. Customers can tell you’re responsible by looking at your FSSAI number. Distributors can tell you’re serious by looking at that GST number. Investors are informed by that trademark that your brand is valuable.

Compliance is your moat, not a burden, in a sector where customer safety is paramount. In the eyes of retailers, authorities, and most crucially, your customers, it distinguishes you from hobby dealers and lends you legitimacy.

Author Details-Apoorva Lamba (3rd Year Student, Madhav Mahavidyalya, Jiwaji University, Gwalior)