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ComplianceJanuary 16, 2024

Business license requirements for food processing and manufacturing

Food processing and manufacturing facilities – from factories to home kitchens – are regulated by the federal government as well as state and local agencies. These regulations vary significantly from state to state and depend on the type of food being prepared and the processing methods.

If you run or are starting a food processing or manufacturing business, it’s important to understand which business licenses you’ll need, where to obtain them, and what foods you can and can’t prepare in each facility.

State licensing for food processing and manufacturing facilities

Each state has different licensing laws for the food processing and manufacturing sector – and some of these laws can be very specific. For example, in Washington state, businesses that repackage food are considered food processing companies. This includes the repackaging of foods from an unwrapped state and transferring the food product or repackaging it in another container.

What each license covers can be limited and multiple licenses may be needed. Depending on the issuing agency, a license may cover only those products, processes, and operations specified in the license application. If another type of food product is to be sold, you may need to obtain approval to add another food product type. As an example, in addition to obtaining a food processing license, alcohol manufacturers may need to be licensed by the state liquor authority. Or a food manufacturer may need a retail license if the business plans to sell food to the public.

The process of obtaining a food manufacturing or processing license can be time-consuming and complex. You may need to submit floor plans, labeling information, proof of insurance (including worker’s compensation), and more. Your facility may need to be inspected before you are issued a license.

If your food product includes milk, eggs, juices, seafood, and certain canned foods, you are subject to additional federal regulatory requirements to ensure they are safe and free from contamination.

Easily manage complex requirements

There are over 75,000 federal, state, and local jurisdictions.  As their compliance requirements become more complex, we’re the partner that can help you manage them all.

Are food licenses transferable?

A license is typically assigned to a specific owner and location and cannot be transferred. If you start a new business, change owners, or change the physical address of the facility, you will need to submit a new application and fee.

Zoning laws

Zoning laws can have an impact on where you choose to locate your food distribution or manufacturing business. Most jurisdictions zone land for residential, commercial, or industrial use.

Furthermore, the scale of operations permitted in a facility is determined by local municipal zoning and planning boards. For example, they will regulate the number of employees you can have on premises and if separate kitchen facilities are required onsite.

Zoning laws become particularly relevant as you seek to expand your business through the addition of physical space or food production. Just because your business was approved by your zoning and planning board when it first opened does not mean you can expand or modify your facilities without adherence to zoning restrictions and codes.

FDA food facility registration

If your business manufactures, processes, packs, or holds food intended for human or animal consumption in the U.S. you must register with the U.S. Food and Drug Administration (FDA) before beginning operations.

Food facility registration requirements apply to any business that conducts these activities unless they are exempt under 21 CFR 1.226. For instance, retail food businesses, restaurants, and farms are exempt.

PACA

Anyone buying or selling more than 2,000 pounds of fresh or frozen fruits and vegetables on a given day is required to be licensed under the Perishable Agricultural Commodities Act (PACA). In this category are wholesalers, processors, truckers, grocery wholesalers, and food service companies.

Local licenses and permits

Local health departments typically work closely with the state local health department to ensure the safety of food and beverage products.

In addition to state requirements, local health departments may have their own license, permit, and other requirements.

There are also numerous permits associated with the building itself (ex: Certificate of Occupancy), as well as fire codes, and FDA and U.S. Department of Agriculture (USDA) requirements for commercial equipment.

A general business license is also required for all types of businesses. Sometimes it is referred to as a business tax certificate or a business privilege license.

Learn more

States and counties mandate licenses for all food-related operations, spanning from food manufacturing to consumption. Rigorous inspections and law enforcement in the food industry ensure public health and safety standards are met.

Contact CT Corporation’s business license team for more information about how we can help you navigate food processor and manufacturing licensing requirements.

Hans Howk
Manager, Content Management
Hans provides internal support to key members of the Business Licensing Team, assisting with understanding industry nuances, searching and synthesizing statutes and regulations relating to business law.
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