How to start a packaged food manufacturing business in India: registrations and licences

Choosing a structure

Food manufacturing needs capital for machinery, working capital for raw materials and contracts with distributors and retailers. A private limited company or LLP is usual. Small units may start as proprietorships, but limited liability helps in a business exposed to product recalls and food safety claims.

Udyam registration is worth doing early. It gives MSME status, which helps with priority sector lending and with the 45-day payment protection when you sell to larger buyers.

Licences for a food manufacturing unit

Food safety is regulated centrally by FSSAI, but most state licences are issued by state food safety departments. Environmental and labour approvals are state-level and vary in process and timelines.

Product standards and labelling

FSSAI sets standards for many foods. Products covered by a standard must meet it; novel or non-specified foods may need product approval before launch. Labels must follow the FSSAI Labelling and Display Regulations 2020: product name, ingredients, nutritional information, allergen declarations, veg or non-veg logo, FSSAI logo and licence number, batch, dates and storage instructions.

Legal Metrology declarations sit alongside: manufacturer or packer details, net quantity in standard units, MRP inclusive of taxes, month and year of manufacture and consumer care contact. Front-of-pack claims like 'high protein' or 'sugar free' must meet FSSAI's claims rules.

GST for packaged foods

Rates depend on HSN classification and changed widely on 22 September 2025. Items such as biscuits, cakes, chocolates, ice cream, butter and cheese now attract 5%, while some beverages moved to higher rates. Check each product's current rate instead of relying on older charts.

As a manufacturer you can claim input tax credit on raw materials, packaging and machinery. If your inputs carry higher rates than outputs, you may build up credit; inverted duty refunds are possible for goods subject to the rules.

Ongoing compliance

File the FSSAI annual return as your licence category requires, maintain testing records from NABL-accredited or FSSAI-notified labs, and run a food safety management system with trained supervisors. FSSAI conducts inspections and can suspend licences for serious lapses.

Renew pollution consents, file EPR annual returns, and comply with OSH Code safety and welfare duties for factory workers. GST, TDS and company filings run throughout the year.

Selling to retailers, exporters and platforms

Modern trade chains and quick-commerce platforms usually ask for your FSSAI licence, recent lab test reports, Legal Metrology registration, GST certificate and trademark details before listing. Having these in a single compliance file speeds up onboarding.

Exporting packaged food needs an Import Export Code, and many products need registration with APEDA or the relevant export promotion council for benefits. Destination countries set their own labelling and testing rules, which often differ from FSSAI requirements.

Pitfalls for food manufacturers

Label and licence errors often surface only when a large retailer or marketplace audits you, which can delay listings, so audit your own files first.

• Choosing a state licence when capacity or activity requires a central licence.
• Launching a non-standardised product without checking approval needs.
• Printing labels without allergen or nutrition information.
• Starting production before pollution consent to operate is granted.

Step by step

1. 1Register the entity and Udyam

   Company or LLP, plus MSME registration.

2. 2Secure the site

   Check industrial zoning and pollution category before buying or leasing.

3. 3Apply for consent to establish

   Obtain SPCB consent before construction or installation.

4. 4Apply for FSSAI

   Choose state or central licence based on turnover, capacity and activity.

5. 5Register as packer

   Obtain Legal Metrology registration and finalise label artwork.

6. 6Get consent to operate and factory approvals

   Before commercial production, as thresholds apply.

7. 7Register for GST and EPR

   Complete tax and packaging registrations before dispatch.