How To Get A Vending Machine License?

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A license is a bureaucratic sanction given to a person to use or own something or to carry out a particular business.

 One needs to apply for a license to obtain it from the government or an authority authorized to issue the same. For carrying out any business related to the food industry, you need to have a proper license granted by FSSAI

The Food Safety and Standards Authority of India, abbreviated as FSSAI is a regulatory body established by the Government of India in association with the Ministry of Health and Family Welfare. 

It regulates and supervises food safety, thus requiring such organizations to be registered with FSSAI. 

Why Is It Mandatory to Have a License for a Vending Machine?

When starting any kind of business, obtaining a license to do so is a prerequisite. 

Having a license issued by a regulatory authority reduces the chances of any legal actions and violations, ensuring the accountability of the business and the owner. 

What Types of Licenses Are Necessary to Run a Vending Machine Business?

To be registered as a vending machine operator, you will require a license from the FSSAI, a GST Number, and a Trade License. 

License by FSSAI 

If you want to start a vending machine business, the primary license required is a 14-digit license number issued by the FSSAI.

It is mandatory for you to obtain an FSSAI Certificate if you are a vending machine operator, without which you will be prohibited to run such a business. 

Types of Licenses offered by FSSAI

FSSAI offers three types of licenses to businesses.

Basic Registration with FSSAI

As per law, it is mandatory for a business operating in the food industry to get itself registered with FSSAI and obtain a License from the same. A company with a turnover of up to 12 lakh rupees is entitled to obtain a basic registration from FSSAI.

Documents for a Basic FSSAI Registration

The following documents are required for a basic FSSAI registration:

  1. The address proof of the authorized person.
  1. A passport size photograph of the authorized person
  1. Name of the Business and the registered office address.
  1. Declaration form of FSSAI.
  1. Details about the nature of the business and its activities. 

State License

A business operating in the food industry having a turnover between 12 Lakh Rupees to 20 Crore Rupees is obliged to obtain a State license from FSSAI. 

It includes people or businesses concerning the manufacturing, processing, trading, or packaging of food, like small or medium level manufacturers, warehouses, wholesalers and retailers, transporters, restaurants and hotels, and so on. 

Documents for State License Registration

To obtain a State License from FSSAI, you need to present the following documents:

  1. Rental or Purchase agreement of the business premises.
  1. Identification proof of the authorized person in the form of an Aadhaar Card, Passport, Voter ID, or Driving License. 
  1. Memorandum of Association and Articles of Association of an organization.
  1. Declaration form by FSSAI.
  1. Company Incorporation Certificate, Partnership Deed in case of a Partnership firm, Registration Certificate of the firm, GST Registration Number, and Trade License.
  1. Municipality License, Shop and Establishment Registration, Panchayat License
  1. Details of the nature of the business and its activities.

Central License

For businesses with an annual turnover above 20 Crore Rupees, it is mandatory to apply for a Central License issued by FSSAI.

Businesses eligible to apply for the same include large-scale manufacturers, operators in the Central Government, Indian Railways, Airports, Seaports, Bus STations, and so on.

If you operate in more than one state, you are required to get a Central License for your Head Office and State Licenses for the States that you operate in, respectively.

Documents for Central License Registration

To obtain a Central License from FSSAI, you need to present the following documents in addition to the documents mentioned in the State License segment:

  1. Import Export Code Certificate.
  1. Authority letter from the letterhead of the company specifying the authorized person to file an application with FSSAI.

Renewal of FSSAI License

Just like you can apply for an FSSAI license both online and offline, you can apply for the renewal of that license in both modes. 

The FBOs have to apply for renewal 30 days before the expiry of the license, failing which a penalty of rupees 100 per day would be charged. 

How to Obtain a Franchise License for a Vending Machine from FSSAI?

If you want to start a vending machine business, you can either start from scratch by buying a vending machine from a manufacturer or distributor or by taking over an existing business, or buy a franchise. 

There are lots of vending machines manufacturers like:

  1. Wendor
  2. Vending Machines India

To buy a vending machine franchise, you will be required to pay the franchise fee and sign the agreement. 

Documents Required to Start a Franchise of a Vending Machine

  1. Franchise Agreement between the Franchisor and the Franchisee.
  1. Disclosure Document of the Franchise.
  1. Rental or Purchase agreement of the business premises.
  1. Identification proof of the authorized person in the form of an Aadhaar Card, Passport, Voter ID, or Driving License. 
  1. Details of the nature of the business and its activities.
  1. Declaration form of FSSAI.

Trade License

A trade license permits you to operate a business in a specified area by adhering to all the regulations by the Municipal Corporation of the State you are operating in. 

The Municipal Corporation’s Licensing Department issues the Trade License to carry out only the business it has been issued. 

Documents required for Trade License Registration

To obtain a State License from FSSAI, you need to present the following documents:

  1. Rental or Purchase agreement of the business premises.
  1. Identification proof of the authorized person in the form of an Aadhaar Card, Passport, Voter ID, or Driving License. 
  1. Company Incorporation Certificate, Partnership Deed in case of a Partnership firm, Registration Certificate of the firm, GST Registration Number, and Trade License
  1. The Memorandum and Articles of Association of an organization.
  1. Layout plan of the Office of the business.
  1. A Non-Objection Certificate (NOC) signed by the neighbors of the company’s registered office. 
  1. Municipality License, Shop and Establishment Registration, Panchayat License.

Final Words

As discussed above, if you are a business or an individual dealing in any business operation related to food in India, you will have to be registered under FSSAI. 

This article is a step-by-step guide about the types of licenses required to start a vending machine business and their filing process. 

You need to analyze the type of business you are conducting and accordingly apply for the licenses failing which you will be prone to legal actions against you. 

Not just obtaining a license but renewal of your license is also a necessity that should be conducted within the deadline. 

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