Who will take FSSAI AND TRADE LICENSE: owner or tenant ? ?

I work and reside in delhi state and own a commercial shop in alwar district of rajasthan state. A local resident of rajasthan district wants to rent my shop for a small food business.

As you know, food businesses require an FSSAI license and a trade license. I will talk here only about these two only .

1. Can I, the shop owner, obtain both licenses in my name?

2. or will both these licenses be made in the name of the tenant ?

 

 

Replies (1)

1. Can the shop owner obtain both licenses in their name? No, this is legally incorrect and highly inadvisable. Licenses are issued to the active business operator, not the landlord. Under the Food Safety and Standards Act, the entity holding the license is designated as the Food Business Operator (FBO). If the property owner registers for the FSSAI and Trade licenses, they legally assume full financial, penal, and statutory liability for any food safety violations, customer health incidents, or municipal defaults caused by the tenant's business.

2. Will both these licenses be made in the name of the tenant? Yes. Since the tenant is the one managing the daily operations, taking the financial risk, and conducting the trade, they are the actual FBO. Therefore, the tenant is the rightful and mandatory applicant for both the FSSAI registration and the local municipal Trade License in Alwar.

What the owner needs to provide: Instead of applying for the licenses, the shop owner residing in Delhi only needs to provide the tenant with the supporting property documents required for the tenant's applications:

  • A formal, notarized Rent or Lease Agreement.

  • A No Objection Certificate (NOC) explicitly stating the owner allows the premises to be used for a commercial food business.

  • A recent electricity bill or property tax receipt to serve as proof of address and ownership.

Ultimately, the statutory obligation to secure and maintain these operational licenses lies entirely with the individual running the business, which appropriately shields the property owner from the operational liabilities of the tenant's food venture.

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