The New Rs 1.5 Cr / Rs 50 Cr Thresholds: Which FSSAI Licence Do You Need Now

FSSAI now uses Rs 1.5 crore annual turnover as the cutoff for Registration and Rs 50 crore as the cutoff for a State Licence, both raised under the 2026 amendment regulations. Getting your category right avoids either under-licensing your business or paying for a licence tier you do not need.

Key facts at a glance

• The FSSAI Registration threshold is now annual turnover up to Rs 1.5 crore.
• The State Licence threshold is now annual turnover up to Rs 50 crore.
• Turnover above Rs 50 crore, or specific business activities, generally requires a Central Licence.
• These revised thresholds came from the FSSAI Licensing and Registration Amendment Regulations 2026, effective 11 March 2026.
• Street vendors registered under the Street Vendors Act, 2014 are deemed registered under FSSAI.
• Turnover is the primary factor, but business activity type (import, export, multi-state operation) can also determine the required category.
• Operating without the correct licence category is a compliance gap even if you hold some form of FSSAI approval.

The Three FSSAI Categories

FSSAI licensing works on a tiered system based mainly on annual turnover, with three broad categories:

1. Registration - for the smallest food businesses, including many small vendors, home-based businesses and petty food operators.
2. State Licence - for mid-sized food businesses operating within a single state.
3. Central Licence - for large businesses, those operating across multiple states, importers/exporters, and certain categories regardless of turnover.

Turnover Thresholds at a Glance

Note that these are turnover-based bands under the current regulations; the exact treatment of your business can also depend on the nature of your operations, so confirm your specific category with FSSAI or a licensing professional if you are close to a threshold.

Why the Thresholds Were Raised

Raising the Registration threshold to Rs 1.5 crore and the State Licence threshold to Rs 50 crore effectively moves a large number of small and mid-sized food businesses into a lighter compliance category than before. For a business that was previously required to hold a State Licence but now falls under Registration by turnover, this can mean simpler paperwork and different renewal obligations, especially combined with the move to perpetual validity for new licences and registrations issued from 1 April 2026.

What to Do If Your Category Has Changed

If your turnover puts you in a different category than the licence you currently hold, do not assume the old licence automatically covers you correctly going forward. Steps to take:

• Recalculate your current annual turnover against the new thresholds.
• Compare it to your existing licence category (Registration, State, or Central).
• If there is a mismatch, check with FSSAI or a licensing consultant on the correct process to move categories.
• Keep the change documented in case it comes up during a risk-based inspection.

Common Mistakes Businesses Make

• Assuming turnover thresholds are unchanged from before 2026 and staying on an outdated category.
• Confusing "turnover" with "profit" - FSSAI thresholds are based on gross annual turnover, not net income.
• Ignoring activity-based triggers (import/export, multi-state operations) that can require a Central Licence regardless of turnover.
• Not updating the licence category after crossing a threshold mid-year.

If you are not sure which FSSAI licence category your food business currently needs, ComplianceCheck's Food Business Assessment gives you a clear picture in a few minutes.

Sources

• Food Safety and Standards Authority of India - fssai.gov.in
• FSSAI Licensing and Registration Regulations and amendments - fssai.gov.in/regulations
• Ministry of Health and Family Welfare - mohfw.gov.in

This guide is general information, not legal advice. Requirements vary by state, sector and headcount - confirm specifics with a compliance professional or the relevant authority.