Planning to start a restaurant business? Well, go ahead! However, you must know that starting a restaurant business is no cakewalk! Not only would need to go through brainstorming sessions on choosing the right location, hiring the right employees, marketing the restaurant just right, but you must also delegate a considerable amount of time in getting the correct licenses required to open a restaurant in India. You do not wish to entangle yourself into a legal trap after you have planned or instead established your restaurant with your sweat and blood. Hence, make sure that you have all your legal papers in place, and save yourself from all the unnecessary legal hindrances. Read on to find what licenses are required to start a restaurant in India, the cost of those licenses and how to get the restaurant license in India.
Licenses Required to start a Restaurant in India
Here we have listed the most critical restaurant licenses required to open a restaurant in India, obtaining which will ensure that your restaurant operates legitimately.
1. FSSAI Food Safety and Standards Authority License
The FSSAI license, also known as the Food License is one of the most important licenses required to open a restaurant and is obtained from the FSSAI (Food Safety and Standard Authority Of India). This license is not merely a license, on the contrary, it also serves as an approval by the authority and ensures the customers that the food of that particular restaurant affirms to the food safety standards of India. This license is necessarily a unique 14 digit registration number that is given to manufactures, traders, and restaurants which should mandatorily be printed on food packages. This confirms your consumers that they are dining at the right place which adhered to all the safety standards. Learn how the FSSAI License can also be used as a means to attract customers to your restaurant here.
Documents Required for the FSSAI License
Here we have mentioned below the list of documents that are needed to apply for the FSSAI License.
- Id Proof and Address Proof
- Valid Email Id
- Phone Number
- Declaration Of Food Safety Management Plan
- Kitchen Layout Plan
- List Of Food Category
- Water Testing Report from ISI approved Facility
- No Objection Certificate (NOC) from the owner or the partner
- Medical Certificates of Employees
How to Obtain the FSSAI License for Your Restaurant
Once you have these documents in place, you can apply for the license which would approximately cost you around Rs.2000 per year for a new license. The application process is rather simple, and you can log in to the FSSAI website, complete the sign-up process by creating a username for the registration. Then sign in to your account and fill up the online application with all the required documents. Submit the printout of the filled up online application form to the Regional/State Authority with all the supportive documents within 15 days from the date of making the online submission, to ensure that your application is considered. Here is the complete guide that would help you in getting FSSAI License for your restaurant!
2. Liquor License
If your restaurant serves liquor, then procuring the Liquor License is a must. This can be obtained from the Local Excise Commissioner, and the forms are available at the respective State Government websites. Having this license is exceptionally crucial since if you sell liquor without the above-said license, you can incur a huge penalty and also be forced to shut down the premises permanently.
Documents Required for the Liquor License
Here’s the list of documents required for getting the Liquor License for a restaurant and bar.
- Documentary proof regarding the legal status of the restaurant or the hotel, that is, whether it is a company, partnership firm or any other type of setup.
- Whether the restaurant or the hotel is in legal possession of the plot.
- A certificate that validates the completion of the restaurant or the hotel building
- Trade License from the Local authority, that is, MCD/NDMC or such other authorities
- Certificate of registration of Eating house license issued by the DCP.
- Documentary proof regarding applicant being an Income Tax Assessment and Sales Tax-Assesse.
- A complete layout plan of the establishment, site plan of the license outlets and the liquor stores
- NOC from the state Fire Service
How to Obtain the Liquor License for Your Restaurant & Bar
Once the documents are served the concerned Excise Officer inspects the restaurant or the hotel premises, and he then submits a report to the liquor granting authority. After the approval, the applicant has to submit the fees as per the guidelines and then the license is issued. The fee guideline goes like this: you will have to pay Rs, 5,000 at the time submission of the documents and an additional Rs 50,000 is required for each additional spirits brand, like whiskey, rum, gin, brandy, vodka and the like. It is a known fact that obtaining a liquor license for your restaurant is by far the most difficult one since the government verifies all the details with an eagle’s eye.
3. Health/Trade License
The 11the schedule of the Municipal Corporation Act (1957) is about Health Trade License. It came into existence from the concern that public health must be given the supreme importance. This license is generated by the local civil authorities like the State’s Municipal Corporation or the Health Department.
Documents Required for the Health/Trade License
Here is the list of documents required to get the Health/Trader License for your restaurant.
- Sanction and Completion (Includes Ownership proof, Rent Agreement or NOC from landlord)
- Three copies of the site plan and layout
- Indemnity bond for Rs.100
- Structural Stability Certificate signed by Structural Engineer
- Power and Water paid Bill
- Sewer Connection Proof
- Letter from Delhi police is also required for swimming pools, cinema halls, and hotels
- Water Testing Reports
- Plan of the Premises
- Medical Certificates of Employees
- Proof of Property Tax
- Lal Dora Certificate, if applicable
- Medical Fitness Certificate of Workers
How to Obtain the Health/Trade License for Your Restaurant
The applying process of obtaining the Health/Trade License for restaurants is rather easy, and it will cost you approximately around Rs.500-Rs.50,000. A restaurateur can apply for Health/Trade License either at CSB or apply online for it. The forms are available at the State’s Municipal Corporation website or Zonal Citizen’s Service Bureaus. The license is generally issued within 60 days of submitting the application form. Municipal Corporations hold power to shut down restaurants which do not have this license.
Links for the Health/Trade License for the major cities:
4. Eating House License
The Eating House License is provided by the Licensing Police Commissioner of that city where you would want to open the outlet. The approximate cost required to issue this license is Rs. 300 for three years.
Documents Required for the Eating House License
Here’s a list of documents that are needed to get the Eating House License for restaurants.
- Documents to prove the legal occupancy of the place of Eating House and in the case of tenancy, NOC from the landlord
- Site Plan containing details of the size of Eating House
- Photographs of the place showing its usage as an Eating House
- Photocopy of Valid NDMC/MCD/DCB/Airport Authority of India trade license and free receipt.
- Residence proof of the applicant
- An affidavit on the stamp paper of Rs 10 duly attested by Notary Public
- Fire NOC, if the seating capacity of the eating house is 50 or more
- Undertaken with regard to amusement activities
- Undertaking regarding the installations of CCTV Cameras with 30 days recording facility
How to Obtain the Eating House License
The applicant will have to first register himself or herself on the specific website. After you are successfully registered, you will receive a User ID and Password for submission of forms. Using the user ID, you can fill up the form, upload all the necessary documents and fix an appointment. Self-attestation of all the documents you place is a must since it will ensure validation.
Links for the Eating House License for the major cities:
5. Shop and Establishment Act
To run a food business in India, you must register your restaurant under the Shops and Establishment Act, be it a Food Truck or a Fine Dine restaurant. You need to register your restaurant within 30 days of the commencement of your business. This license is city specific. The total cost you would incur for this license amounts to Rs.200 to Rs.4,000 per year. However, the cost is relative as it depends on the number of the employees and the location of the restaurant.
Documents Required for the Shop and Establishment Act License
- Pan Card
- Identity Proof
- Address proof of the proprietor, partner or the company
- Details of the employees
How to Obtain the Shop and Establishment Act License
Once you have arranged all the documents mentioned above, you can submit these with the application form mentioning the name of the shop, the postal address of the establishment and the proof of ownership such as the Rent Agreement or Shop Lease Papers to the Local Chief Inspector of the shop or other Inspectors. Once the government officials verify all the documents, he registers the restaurant in the Register of Establishment and issues a registration certificate. This certificate must be explicitly displayed at your restaurant and must always be renewed before its expiration. You would roughly obtain this license within 7-10 working days. If you wish to change any information, you must inform the Inspector within 15 days so that he could then make the changes in the register of the establishment and issue a fresh registration certificate. It is also mandatory to inform the local inspector regarding the closure of the business within 15 working days
Links for the Shop Establishment License for the major cities:
6. GST Registration
GST that came into force since 1st of July, 2017, has kept everyone hitched to it with this frequent changes. Both the restaurant industry and the government has been in loggerhead for long. Even then registering in GST is one of the major things that your restaurants must do, that will ensure that your restaurant runs seamlessly.
Documents Required for the GST Registration of Your Restaurant
Below is the list of documents required to get the GST registration needed for your restaurant.
For the proof of Ownership/Tenancy rights of the business premises:
- Allotment and possession letter from Authority / Transfer Memorandum.
- Copy of Registered lease deed.
For Rent Agreement and Electricity Bill of the owner of property:
- Copy of Pan Card of Proprietor/Partnership Firm.
- Copy of the Partnership Deed
- Copy of Aadhar Card of Proprietor/all partners
- One passport size-photo of proprietor/all partner.
- Mail ID and Mobile No. to receive OTP & Verification links of all partners
- Latest Bank Statement containing Name, Address and IFSC Code of Branch of Bank.
- List of Item to be traded ( if you want to sell stuff over the counter also)
- List of Item to be traded/manufactured
- Digital Signatures of authorized partners
- Authority Letter in favor of dealing partner
How to Get the GST Registration of Your Restaurant
Yes if you are thinking to take a big bite or leap of faith, it is easier to start your billing and business now because GST registration is a simple process wherein Individual, Partnership firm or Registered Company can obtain by filing necessary documents online at www.gst.gov.in.
The confusion regarding GST has been going around for quite some time now. With the increasing changes, both the restaurant owners and the diners are living in this constant apprehension of further changes that might be incorporated. However, several channels are trying to make things easier for the restaurant owner, GSTStreet is one such platform.
6. Fire Department
The restaurant’s ulterior motive must be to protect their customers from all things dangerous, be it food products or hazards such as fire. A No Objection Certificate(NOC) from the fire department is also required to run a restaurant.
How to Get a No Objection Certificate from the Fire Department
For this, a restaurant needs to register for NOC from the State Fire Department before the building construction starts. Applications can be found online on the state government website. After having all the safety equipment in place, you must invite the Chief Fire Officer for inspection and get the NOC. There is no fee required for NOC as of now.
Links to the Fire Department License for the major cities :
7. Lift Clearance
In case you want to install a lift in your multi-story restaurant, you need to get clearance from an inspector from the electricity department as well as the Labour Commissioner of that specific city. The Electrical Inspector issues this license from the office of the Labour Commissioner after verifying installation of life, layout, safety gears and the like. State wise applications are available for obtaining lift clearance.
How to Get the Lift Clearance for Your Restaurant
Links for the Lift Clearance for the major cities:
8. Music License
Don’t you as a restaurant owner love to play the trending songs at your restaurant? It is not only you, but the customers love it too. But, to play music at your restaurant, you need to obtain a restaurant music license. Under the Copyright Act of 1957, those who play pre-recorded music in any non-private, commercial or non- commercial establishments must obtain a music license issued by Phonographic Performance Limited(PPL). If a restaurant plays music and operates without the said license, they will have to face legal penalties.
For more information on getting music license for a restaurant and online registration visit this website.
9. Certificate Of Environmental Clearance
The restaurant is not only responsible for ensuring the health of the customers, but they are also legally and morally bound to ensure that its operations must not negatively harm the nature of the mother earth. Hence, restaurants are also expected to apply for the Certificate Of Environmental Clearance.
How to Get the Certificate of Environmental Clearance for Your Restaurant
Acquiring the certificate also involves screening, scoping and evaluation of the project to examine its impact on the environment. You will have to submit some documents to obtain CEC along with the application, and they are, The Environmental Impact Assessment Report (EIA) or the Environment Management Plan (EMP), details of public hearing and NOC granted by state regulators.
For the application of the environmental clearance visit this website.
11. Signage License
You need to market your product well that will ensure that your business helps you garner the maximum profit. However, if you want to market your restaurant either through word of mouth, logos, posters, pictures, and symbols, you are required to obtain a legal permit which is the signage license. You can obtain this license from local civil authorities like the Municipal corporations.
These are the licenses required to open a restaurant in India, and these are the papers that will legally permit you to carry on with your restaurant business without getting involved in the legal hindrances. Follow this guide, visit the pages and apply for the licenses if you haven’t yet already!