Every food business in Punjab needs a licence from the Punjab Food Authority (PFA). That covers more than restaurants: shops that sell packaged food, bakeries, caterers, home kitchens selling to the public, wholesalers, warehouses, online food sellers and factories all fall within it.
This guide explains how the licence works, what it costs, what PFA inspectors check before they issue it, and what can happen if you trade without one. If you make a product that is also on PSQCA’s compulsory list, you need both, and our guides to PSQCA certification for dairy and frozen food registration explain how they fit together.
Who needs a PFA licence?
Under section 15 of the Punjab Food Authority Act, 2011, no one may use any place for a food business without the registration or licence the Authority prescribes. In practice that means:
- Restaurants, cafes, dhabas, takeaways and caterers
- Grocery stores, general stores and other shops that sell food
- Bakeries, sweet shops and milk shops
- Food manufacturers and processing units, including water plants
- Wholesalers, distributors and food warehouses
- Online and home-based food businesses selling to the public
Other provinces have their own food authorities and rules, such as the Sindh Food Authority and the Khyber Pakhtunkhwa Food Safety & Halal Food Authority. This guide covers Punjab.
How PFA grades your business and sets the fee
The fee is not fixed. PFA places each business in a type (such as shop, eatery or manufacturer) and then a grade within that type, from A for the smallest to I for the largest. The grade comes from the answers you give about the business:
| Business type | Questions that set the grade |
|---|---|
| Shop | Investment or stock value, daily sales, rent, staff, location and utility bills |
| Eatery | The same, plus seating capacity and menu range |
| Manufacturer | The same, plus machines installed, daily output and number of products |
| Online food business | A separate scale for e-commerce food sellers |
According to PFA’s fee notification, as reported by Pakera, annual fees run from about Rs 800 for the smallest shop to Rs 200,000 for the largest factories and online food businesses. PFA offers a licence category calculator on its portal, so you can see your likely grade before you apply. Answer it honestly. PFA visits the premises before the fee is confirmed, and giving false information is a separate offence.
How to apply for a PFA licence
PFA expects to see the business running, because its team inspects the premises as part of the application. The usual sequence is:
- Register your business for tax first. It has been reported that PFA now expects food businesses to be registered with the Punjab Revenue Authority before it issues a licence, so confirm this when you apply. Your NTN should also be in place.
- Apply online on the PFA portal with your CNIC, a photograph of yourself and a photograph of the business.
- A PFA team visits and inspects the premises.
- PFA confirms your grade and fee, usually by SMS, and you pay through the challan it generates.
- Collect or download the licence once it is issued, and display it at the premises.
The licence is valid for one year and must be renewed every year. Put the renewal date in your compliance calendar.
What PFA inspectors look for
The inspection is where most applications are delayed. Have these in order before the team arrives:
- Clean, pest-free premises, with food preparation areas separated from washrooms and waste.
- Safe water for cooking and cleaning, with a recent water test report if you use your own source.
- Proper storage: raw and cooked food kept apart, food off the floor, and refrigeration that holds the right temperature.
- Staff hygiene: clean uniforms and head coverings, hand-washing facilities, and medical fitness certificates for food handlers.
- Labelled ingredients and products within their dates, bought from traceable suppliers.
- Records: purchase bills, cleaning schedules and, for manufacturers, batch records.
PFA may also grade your premises on how well it meets food standards, and you may have to display that grade where customers can see it.
What happens if you trade without a licence
Running a food business without a licence is an offence under the Act. As reported from the Act, the court penalty can include imprisonment of up to one year and a fine of up to Rs 500,000, and a repeat conviction is punished more heavily. PFA can also act on its own, after a hearing: it can suspend or cancel a licence and impose its own fines. In practice, sealing of premises during inspections is the consequence most businesses see first.
If PFA has already sealed your premises or suspended your licence, our guide to responding to regulatory action sets out what to do first.
Other approvals a food business may need
- A business structure. A sole proprietorship, a registered partnership or an SECP company.
- PSQCA certification if any product you make is on the compulsory list, such as packaged milk, cooking oil or bottled water.
- Halal certification for meat products, and for export. See our halal certification services.
- A trademark for your brand name.
Frequently asked questions
Is a PFA licence required for a home-based food business?
Yes, if you sell food to the public. The Punjab Food Authority Act covers anyone who uses a place for a food business, and PFA licenses home kitchens and online food sellers in their own categories.
How much does a Punjab Food Authority licence cost?
It depends on your business type and grade. According to PFA’s fee notification, annual fees range from about Rs 800 for the smallest shop to Rs 200,000 for the largest factories and online food businesses. PFA’s calculator on its portal shows your likely grade.
How long is a PFA licence valid?
One year. It has to be renewed every year.
Does PFA inspect before issuing the licence?
Yes. A PFA team visits the premises as part of the application, and the fee is confirmed after the visit.
Do I need PSQCA certification as well as a PFA licence?
Only if a product you make is on PSQCA’s compulsory list, such as packaged milk or bottled water. The PFA licence covers the business and premises; PSQCA certifies the product.
How Connect Engineers & Consultants can help
CEC helps food businesses get licensed in the right order: business and tax registration, preparing the premises and records for the PFA inspection, the PFA application itself, and PSQCA and halal certification where your products need them.
Opening or expanding a food business in Punjab? Talk to our team about the approvals you need.
PFA fees, categories and procedures are revised from time to time. Confirm the current requirements with the Punjab Food Authority before you apply. This guide is general information, not legal advice.
