Introduction

Restaurants are one of the most popular ways to invest money in India. Great ambience and good food can surely attract a good number of customers and thus a great profit. However, you need to procure certain licenses if you’re planning to start a restaurant in India. But no worries. You are at the right place. We have provided all the guidance and procedures to get the licenses required to open a restaurant in India.

Table of contents
1. Introduction
2. 12 Most important licenses required to open a restaurant in India
3. Bonus Facts About Restaurant Business in India
4. Conclusion

12 Most Important Licenses Required to open a restaurant in India

Check out how and where to obtain the 12 mandatory licenses required to open a new restaurant in India. 

12 Most Important Licenses Required to open a restaurant in India

1. FSSAI License

This is the first and most important license you’ll need to start a restaurant in India. The Food Safety and Standards Authority of India not only authorizes you to run a restaurant but also gives confidence to your customers. A FSSAI certified restaurant always attracts more people. It is also a legal document representing the approval of the authority.

How to apply

FSSAI license can be applied through their official portal. The inspection will take between one week to one month depending on the paperworks. 

Where to apply 

The food license application can be done online through the official portal. You have to fill up the online form and make payment here. 

Types of licenses 

  • FSSAI Registration – For food business < ₹12 lakhs revenue/year
  • State License – For food business > ₹12 lakhs and less than <20 crore revenue/year.
  • Central License – For food business > ₹20 crore revenue/year.

Documents required

  • Valid Email ID and Contact Number
  • FSSAI form duly filled and signed by the Restaurant Owner
  • Identity and Address Proof issued by a Government Authority
  • List of main stakeholders along with their identity proof
  • Declaration of Food Safety Management plan
  • Proof of possession of the location/premise
  • No objection certificate from the local Municipal Corporations or local bodies
  • Kitchen Layout Plan
  • Water Testing Report provided by ISI certified organization
  • List of Food Category
  • Partnership Deed/ Affidavit of Proprietorship (in case of business operated in other premises or case of partnership firm)
  • Medical certificates of employees
  • Types of equipment to be used

Food License Cost :

Food License costs ₹2000/year for State License and ₹7500/year for Central License

2.  Eating house license

Eating house license is mandatory if you’re planning to open a public restaurant where food and beverages are supplied for consumption. 

How to apply 

You can apply for this restaurant license online. You just need to fill the application along with submitting the required documents. After that the applicant must meet the Additional Commissioner of Police of the state for the verification of application and the examination of documents. If the application and documents are approved, the applicant will be issued the eating house license within two months. 

Where to apply 

The eating house license can be brought from the respective websites of the city or state licensing policing commissioner. 

Documents required

  • Fire NOC if the seating capacity is greater than 50
  • Site plans and photographs
  • Documents of the restaurant building and NOC from property owner
  • Trade license
  • FSSAI license
  • Photocopy of valid NDMC/MCD/DCB/ Airport Authority of Indian trade license and valid fee receipt
  • Undertaking regarding the installation of a CCTV camera recording facility with a minimum of 30 day’s recording stored

Eating house License Cost

The cost of getting an Eating house license is around Rs 300.

3. Health/Trade license

Public health is a crucial factor to be considered before opening a new restaurant. Health Trade License is a license issued by a municipal corporation permitting the operation of a business engaging in goods and services that directly affect the health of the general public. 

How to apply

Initially, you have to fill up all the details of the application form for Health Trade License like applicant status, address of premises, type of business activity, residential address of the owner. After the verification of the application and documents, the license will be issued. 

Where to apply

The forms for the application of Health Trade License are available at the State’s Municipal Corporation website or Zonal Citizen’s Service Bureaus. 

Documents required

  • Three copies of the site plan
  • Electricity and Water bills
  • Rent Agreement or NOC from landlord
  • Sewer Connection Proof
  • Proof of property tax
  • Letter from local police
  • Plan and Layout of the restaurant
  • Indemnity bond for Rs.100
  • Structural Stability Certificate signed by the concerned Structural Engineer
  • Water Testing Reports
  • Medical Certificates of Employees
  • Lal Dora Certificate, if applicable( only in Delhi)

Health/Trade License Cost 

The cost of the trade license is based on the location of the restaurant. 

4. Liquor license

Selling liquor is one of the most profitable businesses for the Hotel Sector in India.

It always has high demand irrespective of the season. You need the Liquor License to serve liquor at your restaurant. The Liquor License is permission granted by the State Excise Department to those who want to sell or distribute alcoholic beverages or drinks at a particular place.

How to apply

Each state has its own rules to be followed for serving liquor. The application has to be submitted to concerned state authorities. 

Where to apply

As already mentioned, each state has different rules and regulations to be followed. The application has to be submitted to the respective state authorities. 

Types of Liquor Licenses

  • L-1 – Granted to company society or partnership running with manufactured units
  • L-3 – Granted to working distilleries or bottling plans that are issued by the state or central government
  • L-6 – Granted for retail vendors for liquor and beer by the state government
  • L-10 – Granted for sale of foreign liquor and select Indian brands
  • P-13 – Temporary license provided to hotels, pubs, and restaurants which are licensed to sell liquor inside or outside the premises for one specific day
  • P-10 – Granted to serve liquor at a function on a specific day for anywhere in the city other than public parks

Documents required 

  • Address proof of the restaurant
  • Original application and a copy with business details
  • NOC from the fire department and municipal corporation
  • List of all directors of the company
  • MOA and AOA if the applicant is a company
  • Copy of the latest IT returns
  • Concern applicant photographs
  • Affidavit of the applicant stating there are no criminal records under their name

Liquor License Cost

The cost of the liquor license is based on the location of the restaurant. 

5. GST Registration

GST number is mandatory to start any company in India. If your restaurants have outlets in different states, then you need to have a separate GST registration for each state.

How to apply

Firstly, you need to apply for GST registration in Form GST REG – 01. After that, you’ll be asked to upload documents and attest the same with your signature. After the verification of your application and documents, the department will grant your registration certificate. 

Where to apply

You need to go to the official website of GST to register. 

Documents required

  • Applicant details
  • Mobile number
  • Email Id
  • Pan card number
  • Proof place of business
  • Copy of valid rental agreement/lease agreement
  • Valid bank account from India
  • Provisional ID and password received from the state’s VAT department

GST Registration License Cost

There is no fee for GST registration in India.

GST Registration License Cost

6. Environmental clearance license

Environmental clearance is a procedure to get clearance from the government for certain industries which cause environmental pollution. Your restaurant is expected to cause no pollution to the environment. 

How to apply

You need to submit the questionnaire for environmental appraisal. The expert appraisal committee will review your application and approve the same if eligible. 

Where to apply 

You can apply for the certificate of environmental clearance from the ministry of environments and forests website

Documents required

  • Letter of intent from the Ministry of Industry
  • NOCs from the State Pollution Control Board and the State Forest Department if the project talks about forestland

Environmental clearance License Cost

It depends on the type of restaurant.

7. Fire safety license 

The safety of the workers and customers is one of the most important factors in any industry. The restaurant must protect its customers and workers from fire hazards. A No-Objection-Certificate (NOC) from the fire department is thus required to run a restaurant.

How to apply

The restaurant must submit the application for NOC from the state fire department. The restaurant should also have all the safety equipment in place. After that Chief Officer will inspect the equipment and approve your license if eligible. 

Where to apply

The NOC should be submitted to the state fire department. Applications can be found online on the state government website.

Documents required

  • Arrangements of Building intends to comprise of building format, examination report, the type of oversight.
  • The structure plan should be as per the data recommended by the bye-laws of the state.
  • Checklist survey questionnaire with answers
  • Building Model certified agenda by Architect.
  • Building Stability declaration.
  • Applicant’s id card- a copy of Aadhar Card.
  • Photographs of the setup building clicked from outside.
  • Quantity and finishing endorsement of Electric wiring should be given from a perceived position.

Fire safety license License Cost

There is no fee required

8. Lift license 

You’ll need a lift clearance if you’re planning to install a lift in your restaurant. You have to ensure that the lift operation is designed by meeting the safety standards. 

How to apply

You have to register for the Lift Clearance License which ensures that the lift operations comply with safety norms.

Where to apply

The lift clearance license can be obtained from the electrical inspector in the office of the Labour Commissioner. The electrical inspector issues this license from the office of the Labour Commissioner after verifying the installation of your restaurant’s lift. 

Lift License Cost

The cost for a lift license depends on the technical parameters of the lift. 

9. Signage license

You’ll need a Signage License for advertising your restaurant. This legal permit allows you to market your restaurant by using photos, graphics, and painting in your area. 

How and where to apply

You can obtain this license from your respective Municipal Committee or City Corporation. 

10. Music license

Music is cool and it will attract more customers. But for playing music in your restaurant, you have to obtain a music license. 

How and where to apply

Restaurants can obtain a music license from the Phonographic Performance Limited website. 

11. Shop and establishment license

This license is mandatory and permits you to run a business in your respective state. It comes under the Shop and Establishment Act which regulates the working hours, payments of staff, and work conditions. 

How to apply

The Chief Inspector of Shops and Establishment Act, or the inspectors assigned to the area where you operate the restaurant, are the persons approved to provide the certificate of registration. You can either apply for the license online or offline. 

Where to apply

The application can be submitted directly to the respective area inspector or you can submit it through the labor commission website of your state. 

Documents required

  • Details of Employer/Manager
  • Memorandum and Articles of Association/Trust deed/Partnership Deed
  • Lease Rent Agreement /Premises purchase Agreement
  • List of Directors/Managers/ Partners
  • Bank Account Number details
  • First Income Tax Assessment order/PAN
  • BMC declaration
  • Date of commencement of business

Shop and establishment License Cost

The cost of this license depends on the number of employees in your restaurant. 

12. Insurance

It’s always recommended to insure your restaurant for the following parameters.

  • Public Liability
  • Product Liability
  • Fire Policy
  • Building & Asset

How and where to apply

Insurance can be obtained from any legally registered entity. 

Bonus Facts About Restaurant Business in India

Stats don’t lie! Here are some impressive numbers that indicate the growth of the food and restaurant industry in India and judging by it there is a sea of opportunities in this sector!

Bonus Facts About Restaurant Business in India

Conclusion 

You don’t have to be confused and tensed by looking at the number of licenses you need to start a restaurant. We have clearly explained how to obtain these licenses easily. These licenses are mandatory to keep your business healthy. Once you have got all these licenses, you can plan the opening ceremony of your restaurant at any time. So, best wishes for your new restaurant!

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