Opening a restaurant can be a daunting task. You must choose the right restaurant concept, and a suitable location, hire quality workers, obtain licenses, and sell the restaurant properly.
With the correct guidelines and information, even obtaining a restaurant license can be a piece of cake. This article will assist you in navigating the legal processes and requirements of starting a restaurant.
Are you prepared for some paperwork and patience?
In India, licenses are required to operate a restaurant.
These are the most important restaurant licences to obtain before opening a restaurant; obtaining them will ensure that your restaurant operates legally.
1. FSSAI Certification
One of the most significant permits required to start a restaurant is the FSSAI licence, often known as the Food License. It comes from the FSSAI (Food Safety and Standard Authority of India).
This restaurant licence is more than just a licence; it also serves as an approval by the authorities and assures customers that the food at that particular restaurant meets Indian food safety regulations. Manufacturers, traders, and restaurants must all have a unique 14-digit registration number. It must be printed on all food packages.
Documents Required for FSSAI Certification
The following documents are required to apply for an FSSAI Restaurant License:
ID and address verification
Phone number and valid email address
Declaration of Food Safety Management Plan Affidavit
Restaurant kitchen design and layout
ISI-approved facility water testing report
Certificate of No Objection (NOC) from the owners or partners
Employee medical certifications
How to Apply for an FSSAI License for Your Restaurant
You can apply for the licence after you have these documents in hand. The application procedure is straightforward:
Log in to the FSSAI website and finish the registration process by creating a username.
Then, complete the online application with all of the necessary documentation.
To ensure that your application is reviewed, provide a hard copy of the completed online application form along with all supporting papers to the Regional/State Authority within 15 days of making the online submission.
Here is a comprehensive guide to obtaining an FSSAI licence for your restaurant.
2. Liquor Permit
If your restaurant offers alcohol, you must obtain a Liquor License. This can be received from the Local Excise Commissioner, and the forms can be found on the websites of the respective state governments. Having this licence is very important since selling liquor without the above-mentioned permission might result in a large fine as well as the forced closure of the premises.
Cost of a Liquor License
You must pay Rs.5,000 when submitting the documentation, and an extra Rs.50,000 for each additional spirits brand, such as whiskey, rum, gin, brandy, vodka, and so on.
Documents Necessary for a Liquor License
The following documents are required for obtaining a Liquor License for a restaurant or bar:
Documentary confirmation of the restaurant’s or hotel’s legal status, that is, whether it is a corporation, partnership firm, or any other sort of organisation.
Proof that the restaurant or hotel has legal ownership of the plot.
A certificate confirming the completion of the restaurant or hotel structure.
Local authority trade licence, such as MCD/NDMC or other authorities
The DCP granted a certificate of registration for an eating house licence.
Documentary proof of the applicant’s income tax assessment and sales tax assessment.
NOC from the state Fire Department
How to Obtain a Liquor License for Your Restaurant or Bar
Find the form on the website of your state government.
The above-mentioned documents should be served on the Excise Officer who inspects the restaurant or hotel premises.
He will next file a report with the liquor licencing authority.
Following approval, the applicant must submit the required fees, and the licence is issued.
It is a well-known fact that obtaining a liquor licence for your restaurant is by far the most challenging because the government scrutinises every detail. So, best wishes.
3. Trade/Health License
This licence confirms that your restaurant is in compliance with the Health Department’s health concerns. After you submit the form and documentation, it will take around 60 days to be issued to you.
Cost of a Health/Trade License
Depending on your state’s legislation and unique needs, the cost could range from Rs 500 to 50,000.
Health/Trade License Ownership Proof, Rent Agreement or NOC from Landlord
Three copies of the site plan and layout are required.
Rs.100 indemnity bond
Certificate of Structural Stability issued by a Structural Engineer Power and Water Bills
Proof of Sewer Connection
Police letter from Delhi
Reports on Water Testing
The Premises Plan
Employee Medical Certificates
Proof of Lal Dora Property Tax Certificate, if applicable
How to Obtain a Restaurant Health/Trade License
A restaurant owner can apply for a Health/Trade License at CSB or online. The forms are available on the website of the State Municipal Corporation or at Zonal Citizen’s Service Bureaus. Municipal Corporations have the authority to close eateries that do not have this licence.
4. Restaurant License
The Licensing Police Commissioner of the city where you intend to operate the outlet issues the Eating House License.
Cost of a Restaurant License
The approximate cost of issuing this licence for three years is Rs. 300.
Documents Needed for an Eating Place License
The following documents are required to obtain an Eating House License for a restaurant:
Documents proving legal occupancy of the Eating House location and, in the case of tenancy, NOC from the landlord.
Site Plan detailing the size of the Eating House
Photographs of the location demonstrating its use as a restaurant Photocopy of a valid NDMC/MCD/DCB/Airport Authority of India trading licence and free receipt
The applicant’s proof of residence
If the seating capacity of the dining house is 50 or more, an affidavit on stamp paper of Rs.10 fully attested by Notary Public Fire NOC is required.
Project involving the installation of CCTV cameras with a 30-day recording capability.
How to Obtain an Eating House License
The candidate must first register himself or herself here.
Using the user ID, you may fill out the form, upload the required documents, and schedule an appointment. Self-attestation of all documents is required because it ensures validity.
5. Shop and Establishment Permit
To operate a restaurant in India, you must register your establishment under the Shops and Establishment Act. From a food truck to a luxury dining establishment. You must register your restaurant within 30 days of starting your business. This is a city-specific licence.
Shop and establishment expenses
The overall cost would range between Rs.200 to Rs.4,000 each year. The cost, however, is relative because it is determined by the number of staff and the location of the restaurant.
Required Documents for the Shop and Establishment License
Proof of Pan Card Identity Address Proof of the proprietor, partner, or company
How to Obtain a License Under the Shop and Establishment Act
Get the application form from this page or your state government’s website.
Submit the documents with the application form to the Local Chief Inspector, noting the name of the shop, the postal address of the establishment, and proof of ownership such as the Rent Agreement or Shop Lease Papers.
Once all of the documents have been verified, the government official will register the restaurant in the Register of Establishments and give a registration certificate.
This certificate must be clearly displayed in your restaurant and must be renewed prior to its expiration date.
6. Fire Safety Certificate
A restaurant must safeguard its guests from all hazards, including tainted food and fire hazards. To operate a restaurant, a No-Objection-Certificate (NOC) from the fire department is required.
Cost of a Fire Safety License
Currently, there is no fee for NOC.
How to Obtain a Fire Safety Certificate
The eatery must first apply for NOC from the State Fire Department. Applications are available on the state government’s website.
After installing all of the safety equipment, you must ask the Chief Fire Officer for an inspection and obtain the NOC.
7. Clearance for Lifts
If you wish to install a lift in your multi-story restaurant, you must first obtain permission from an inspector from the energy department as well as the Labour Commissioner for that city. After evaluating the installation of life, layout, and safety equipment, the Electrical Inspector issues this licence from the Labour Commissioner’s office. Lift clearance can be obtained using state-specific applications.
8. Music Permit
A restaurant music licence is required to play music in your restaurant. Phonographic Performance Limited publishes it (PPL). If a restaurant plays music and does not have the necessary licence, they will face legal consequences.
9. Environmental Clearance Certificate
Any restaurant is legally and morally obligated to guarantee that its activities do not have a harmful impact on the environment. As a result, you must additionally apply for the Certificate of Environmental Clearance. More information can be found here.
10. Signage Permit
To ensure that your restaurant makes the most profit, you must market it effectively. You must obtain a signage licence from the Municipal Corporation or another local body in order to lawfully use posters, graphics, and paintings to sell your restaurant in the surrounding region.
11. Goods and Services Tax (GST) Registration
With these regular adjustments, GST, which went into effect on July 1, 2017, has kept everyone tied to it. For a long time, the restaurant business and the government have been at odds.
Unlike previous taxes (VAT, Service Tax), you only have to pay one tax. You may easily register your restaurant for GST online and get it approved quickly.
The GST rates that apply to restaurants are as follows:
The GST is fixed at 5% for all restaurants and hotels, AC or non-AC; serving or not supplying booze.
A 5% GST rate is applicable to all regular catering at restaurant premises.
GST is fixed at 18% for all outside catering provided by the restaurant.
Restaurants and hotels that fall within the 5% GST slab and/or have an annual turnover of more than 1 crore INR are not eligible to collect Input Tax Credit (ITC)*.
Restaurants and hotels in the 18% GST bracket can claim ITC advantages.
If alcohol is provided in a restaurant, GST will not be charged on the liquor. However, the consumer can be taxed for alcohol through VAT and other state levies. This does not apply to any bill, including food goods.