Can a company with a tea board distributor license sell directly to customers in their own brand and also to other businesses who are into selling tea?

Can a company with a tea board distributor license sell directly to customers in their own brand and also to other businesses who are into selling tea?

The tea industry in India produces and exports as much tea as any country around the globe and continues to generate interest among entrepreneurs, distributors, exporters, and brand creators. The increasing interest in branded teas, private label options, and B2B Supply Chains has created a question among many tea distributors and traders as to whether or not they may operate under their own brand and supply other businesses with the same products. This question is not just about money; it is also directly related to regulatory compliance, licensing guidelines and policies set forth by The Tea Board of India. Therefore, understanding what you are permitted to do with your Tea Board registration will help you avoid penalties and develop a successful and sustainable tea business, as well as comply with the law and continue your business's growth. In this Robin-Venture guide, we will address: The License, The Allowance of Branding and Direct Sales, The Treatment of B2B Business Sales and How You Stay Compliant, The Licensing Process with The Tea Board, Use Cases and Compliance Best Practices for Future Growth and Development of your Tea Business.

Understanding Tea Board Registration in India

The Tea Board of India is a governmental agency under the Ministry of Commerce and Industry that regulates the growing, manufacturing, shipping, and exporting of all types of tea grown in India. Anyone or any company that sells tea must have registered or received the necessary license from the Tea Board to legally sell, produce, package, and ship tea in India or to the rest of the world.

The following businesses must register with the Tea Board to do business in India:

• Produce or manufacture tea

• Buy, sell and distribute tea

• Package and blend tea

• Export to or import from another country.

Without a current registration with the Tea Board, a business cannot sell tea legally within India or to any other country.

What Is a Tea Board Distributor License?

The Tea Board distributor license permits a company to conduct business as an officially recognized tea distributor or trader. The Tea Board distributor license usually applies to:

• Wholesale traders of tea

• Tea distributors

• Bulk sellers of tea

• Businesses that buy tea from tea manufacturers for resale.

A distributor's license gives the distributor the legal authority and capability of purchasing tea directly from registered tea manufacturing sites or tea auction houses and reselling to customers either in local markets or abroad, subject to any applicable government branding, packaging, and quality regulations.

Can a Tea Board Distributor Sell Tea Under Its Own Brand?

The Short Answer: Yes, with conditions

If you have the Tea Board's Distributors License, this will allow that distributor to market and sell their Tea in India using a brand of their own naming; however, it's subject to further regulatory compliance and branding requirements.

There is not an automatic right to brand all teas; however, The Tea Board permits distributors with Distributor Licenses to sell branded Tea once they fulfill these requirements:
Key Requirements for Selling Tea Under Your Own Brand

1.A valid registration from the Tea Board

To sell Tea under your own brand name you must have a valid registration on record with the Tea Board and must comply with all renewals associated with that Business Registration.

2. Brand Declaration

If the distributor markets tea under its own brand name, the brand details must be disclosed to the Tea Board.

3. Tea Packaging and Labeling Requirements

Labels used on your packaging must meet all the requirements established by the Tea Board and meet the requirements set in place by other Regulatory Agencies including:

• Legal Metrology Act
• FSSAI
• Country of origin
• Net quantity and quality information

4. Misrepresentation

As a distributor you may not represent yourself as a Manufacturer. If the only function of the business is selling Tea you cannot represent that.

5. Only Source from Registered Entities

You can only sell tea under your brand if you sourced it from Registered Manufacturer (Tea Board) or Registered Auction Centers.

By meeting the above requirements, a distributor can develop and advertise their Owned Tea brand within the India market legally.

Can a Distributor Sell Directly to End Customers?

Yes, direct sales to end consumers via tea distributors is permissible.

Tea distributors may engage in direct sales to:

• Individual retail customers, in physical retail stores and through e-commerce (on-line).

• Cafés, hotels and restaurants

• Corporate customers

• E-commerce (e.g. Amazon)

Distributors may sell retail or D2C because the Tea Act does not prohibit them from making those sales as long as:

• The tea has been obtained legally

• They follow the laws regarding packaging and labeling

• They comply with applicable GST laws and food laws

This allows the distributors to be very flexible when developing their own brands while continuing to supply their customers through wholesale channels.

Can the Same Company Sell Tea to Other Businesses (B2B Sales)?

The distribution of tea through a Tea Board Distributor License is completely allowed for B2B sales. Under this type of license, the distributor is allowed to sell their products to:

• Retailers,

• Cafés and Restaurants,

• Tea Shops/Chains,

• Online Sellers,

• Corporate Clients,

• Other Distributors/Traders of Tea.

B2B sales represent a significant portion of any distributor's business and are completely permitted by the Tea Board.

Key Compliance Factors to Keep in Mind

1.Verification of Authenticity

All teas being traded must come from:

• Registered Tea Board Tea Farms

• Approved Manufacturers or Auctions

The sourcing of tea from non-registered sources can lead to fines or cancellation of permits.

2. Labeling

When selling under a private label, the following information must appear on the label of the tea sold:

• Net Weight

• Manufacturer/Packer Identification

• Batch Number

• FSSAI Licenses

• Country of Origin

False labels may result in regulatory action being taken.

3. Separate Contracts (Optional)

While not required, we recommend that:

• Suppliers enter into contracts with B2B customers

• Distribution agreements are executed with Retailers

• Quality Assurance (QA) documentation is compiled

Each of these items provides increased legal certainty and enhances the reputation of the Supplier/Brand.

Selling to Customers vs. Selling to Businesses: Is There Any Legal Difference?

From a Tea Board perspective, the distinction lies not in who you sell to, but how you sell and represent the product.

Aspect	Direct to Customers (B2C)	Selling to Businesses (B2B)
Allowed under distributor license	Yes (with branding compliance)	Yes
Branding requirements	Mandatory	Optional
Packaging norms	Strict	Flexible (bulk allowed)
Documentation	Invoices, labels	Bulk invoices, sourcing records

As long as the distributor follows compliance norms, both B2C and B2B sales are legally permissible under Tea Board Registration.

Do You Need Any Additional Licenses?

The primary requirement is to obtain a Tea Board Registration; however, there are other types of registration that may be required depending on how you conduct your business:

You will need the following registrations in addition to your Tea Board License Registration:

• FSSAI Registration (required for all food items)

• GST Registration

• Trademark Registration (to protect your brand)

• Legal Metrology Registration (for any goods offered as pre-packaged)

• Import Export Code (IEC) if exporting goods

All these registrations must be completed together with your Tea Board License Registration to ensure that you comply with all regulatory requirements.

Selling Directly to Customers: Is It Allowed?

Yes, Direct-to-Consumer (D2C) Sales Are Allowed

Once compliant, the distributor has the option of selling directly to consumers via their own:

• Physical Retail Stores

• E-commerce Sites

• Own website or third-party marketplaces

This strategy is gaining popularity due to the fact tea businesses have an opportunity to control pricing, develop their brand, and enhance profitability.

Important Compliance Factors to Remember

GST Registration and Tax Compliance

Consumer Protection Laws

Quality Consistency Across Batches

Direct selling is not contrary to the rules established by the Tea Board as long as your Registration Scope allows for it.

Tea Board License Registration Process Explained

The Tea Board License Registration Process should be understood in detail by businesses to avoid any delays and/or rejection of the application.

The following steps are involved in the application process:

1.Online Application

The business should fill out the Online Application Form on the Tea Board Website providing all the necessary information about the Company.

2. Documents Submission

• PAN Card
• Business Registration Document
• Proof of Business Address
• GST Registration Certificate
• FSSAI License (if applicable)

3. Tea Board Verification

The Tea Board will verify the applicant's credentials, sources of Tea Supply, and the applicant's business operations.

4. Titling of the License

Once the License application is approved by the Tea Board, the Distributors will be issued with the Distributors License.

5. Renewals & Compliance

The Licenses are renewed periodically, and the businesses must adhere to the Tea Board's Inspection and Reporting Requirements.

Selling Both B2C and B2B: Is It Legally Allowed?

Yes, By Obtaining Correct Registrations

A company is authorized to:

• Sell tea directly to consumers (D2C / B2C).

• Sell tea to other companies or processors (B2B).

Provided That:

• The company has Current Distributor License from the Tea Board of India.

• It should also be registered with the Tea Board of India to package/brand its products (if applicable).

• The company must meet the regulatory requirement of the FSSAI for consumer sales.

There are numerous successful Indian tea companies that successfully use this dual distribution model.

Common Business Models Using Tea Board Registration

1.Model of a Distributor + Brand Owner

The Distributor of tea searches out tea in bulk for an intermediary with a consumer, packs and markets the product under their own brand, and sells it to the consumer through e-commerce, retail and wholesale channels.

2) Model of a Distributor + The Private Labelling Partner

The Distributor sources tea for the cafe or start-up to sell under that business's own branding.

3) Model of Distributor + The Institutional Supply Partner

A Distributor sources tea for the office/hotel/airline market.

As long as each of these models is registered with the Tea Licensing Board (also known as the Tea Board), they are all legally compliant.

Compliance Risks to Avoid

Registered distributors are subject to penalties if they do the following:

• Use a brand name to sell tea (without registered packeter)

• Use false or misleading labels

• Source their tea from an unregistered Supplier

• Fail to renew their Tea Board license

Failure to comply with the law may result in any or all of the following:

• Suspension of their license

• Fines

• Legal Notices

• Damage to their brand reputation.

Why Proper Tea Board Registration Matters for Business Growth

Holding correct registrations:

• Builds trust with consumers and B2B buyers
• Enables pan-India and export expansion
• Protects business from regulatory actions
• Improves brand credibility and funding prospects

For growing tea brands, compliance is not a cost—it’s an investment.

Business Advantages of Holding a Distributor License

• Legal authority to trade tea across India
• Ability to serve both B2B and B2C markets
• Flexibility to launch private labels
• Increased trust with buyers and regulators
• Easier expansion into exports (with additional registration)

A properly structured Tea Board Registration gives businesses a strong foundation for scalable growth.

Common Mistakes to Avoid

1)Selling tea from unregistered suppliers,

2) Ignoring compliance with FSSAI for branded products,

3) Making misleading claims about origin or quality,

4) Assuming that the distributor license covers manufacturing,

5) Delaying the renewal of compliance updating.

By avoiding these problems, you will help protect both your company and its license (to distribute).

Conclusion

In closing, those who possess a Tea Board distributor's license can sell directly to consumers via their own brands as well as provide tea products for resale by another entity, so long as they comply fully with all relevant Regulations established by the Tea Board of India. Further, while the Tea Board of India has established a registration process to help protect consumer interests, it has been established to promote growth in the tea industry while creating quality and traceability for all products. Once entrepreneurs know what their registration covers and they follow the registration process and comply with restrictions related to labeling, packaging, and sourcing, they can successfully conduct business through both B2C and B2B sales channels. For those who operate in the tea business as entrepreneurs, compliance is not an obstacle; it serves as the foundation for continued credibility, expanding to new markets, and establishing consumer trust within a very competitive marketplace for tea.

Frequently Asked Questions (FAQs)

1. Is Tea Board Registration mandatory for selling tea in India?

Yes. Any business involved in tea trading, distribution, packaging, or export must obtain Tea Board Registration in India.

2. Can a distributor sell tea under multiple brand names?

Yes, provided all brand names are declared and comply with labeling and packaging regulations.

3. Does selling online require a separate Tea Board license?

No separate license is required, but online sellers must comply with e-commerce and FSSAI norms.

4. Can a Tea Board distributor export tea?

Yes, but the distributor must also obtain an Import Export Code (IEC) and comply with export regulations.

5. How long does the Tea Board License Registration Process take?

Typically, it takes a few weeks, depending on document verification and application accuracy.