Licenses Required to Start a Restaurant Business in India

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The process of opening a restaurant might be daunting. You must select a restaurant concept, locate the ideal site, employ qualified personnel, obtain licenses, and properly advertise the establishment. Even acquiring a restaurant license may be a cakewalk if you know the appropriate laws and have the right information. This blog will assist you in navigating the legal aspects of operating a restaurant.

Licenses required to start a restaurant business in India

Given below are the most important restaurant licenses to start a restaurant business; having them ensures that your business works legally.

FSSAI License

One of the most significant permits necessary to start a restaurant business is the FSSAI license, often known as the Food License. It’s obtained from the FSSAI (Food Safety and Standard Authority of India). The license can be easily obtained by FSSAI online registration.

This restaurant license is more than simply a license; it also serves as government permission, ensuring customers that the food supplied at that particular restaurant complies with Indian regulations. food safety regulations. Manufacturers, traders, and restaurants must all be assigned a unique 14-digit registration number. It is required to be printed on all food packaging. This license is an absolute necessity to start a restaurant business and can be easily obtained by FSSAI online registration.

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Liquor License

If your restaurant offers alcohol, you’ll need to get a liquor license to start a restaurant business. The form can easily be accessed on the individual State Government websites and may be received from the Local Excise Commissioner. This license is extremely important to start a restaurant business since selling liquor without the above-mentioned license might result in hefty fines and the permanent closure of the establishment.

Cost of a Liquor License

You must pay Rs.5,000 at the time of document submission to start a restaurant business, plus an extra Rs.50,000 for each additional spirits brand, such as whiskey, rum, gin, brandy, vodka, and the like.

Health/Trade License

The Health or trade license checks that your restaurant is in obedience to the Health Department’s health concerns. It will take about 60 days after you submit the paperwork and evidence for it to be given to you. In order to start a restaurant business in India, you’ll need this license.

Cost of a health/trade license

Depending on your state’s legislation and unique needs, the cost might range from Rs 500 to 50,000 to start a restaurant business.

Eating House License

The Licensing Police Commissioner of the city where you intend to operate the outlet issues the Eating House License to start a restaurant business.

Cost of a Restaurant License

The cost of granting this three-year license is anticipated to be Rs. 300. In order to start a restaurant business in India, you’ll need this license.

Shop and Establishment License

The Shops and Establishment Act requires you to register your restaurant if you want to start a restaurant business in India. You must register your restaurant within 30 days of the start of your business, whether it is a food truck or a fine dining establishment. This is a city-specific license.

Costs of the store and the establishment

The entire cost each year will range between Rs.200 and Rs.4,000 to start a restaurant business. However, the cost is relative, as it is affected by the number of employees and the location of the restaurant.

Fire Safety License

A restaurant’s patrons must be protected from any dangers, whether it’s contaminated food or perils like fire. To start a restaurant business, a fire department No-Objection-Certificate (NOC) is necessary.

Cost of a Fire Safety License

Currently, there is no charge for obtaining a NOC.

Lift Clearance

If you wish to put a lift in your multi-story restaurant, you’ll need permission from an energy department inspector as well as the city’s Labor Commissioner to start a restaurant business. After checking the installation of life, layout, safety gears, and other items, the Electrical Inspector grants this license from the Labor Commissioner’s office. For getting lift clearance, state-specific applications are available.

Music License

A restaurant music license is required to play music in your establishment. Phonographic Performance Limited is the company that issues this type of license. If a restaurant plays music and does not have the required license, it will face legal consequences. A Music license is required for entertainment to start a restaurant business in India.

Certificate of Environmental Clearance

Any restaurant is required by law and morality to guarantee that its activities do not hurt the environment. As a result, you must additionally file for a Certificate of Environmental Clearance. To start a restaurant business, it is important to get a certificate of environmental clearance.

Signage License

To ensure that your restaurant makes the most money, you must promote it effectively. To lawfully use posters, graphics, and paintings to sell your restaurant in the surrounding area, you must first get a signage license from the Municipal Corporation or another local authority. To start a restaurant business, it is necessary to get a signage license.

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Conclusion

To start a restaurant business, it is necessary to keep in mind the laws and regulations governing each license according to different towns and states. Make sure you’re familiar with all of the different licenses you’ll need on a state and municipal level. Getting them is a crucial step to starting a restaurant business and avoiding costly fines. To secure these licenses, it is beneficial to take correct expert legal advice. Apart from saving time, it gives you an edge to secure these licenses in a proper manner. Once you have got control over these regulatory things, you can focus on other parts. Correct legal advice makes your job easier.

Frequently Asked Questions on Licenses Required to Start a Restaurant Business in India

Q1. What are the licenses required to start a restaurant in India?

Ans1. To start a restaurant business in India, you need several licenses including FSSAI License, Liquor License (if alcohol is served), Health/Trade License, Eating House License, Shop and Establishment License, Fire Safety License, Music License, Lift Clearance, Certificate of Environmental Clearance, and a Signage License.

Q2. Is FSSAI registration mandatory to open a restaurant?

Ans2. Yes, FSSAI registration is mandatory for all food businesses, including restaurants, as it ensures the food served meets safety and hygiene standards. It provides a 14-digit registration number that must be displayed on food packaging and premises.

Q3. How much does it cost to get a liquor license in India for a restaurant?

Ans3. The cost to obtain a liquor license includes a Rs. 5,000 application fee and Rs. 50,000 per brand of spirits like whiskey, rum, vodka, etc. The exact cost may vary by state and local laws.

Q4. What is the Eating House License and why is it important?

Ans4. An Eating House License is issued by the Licensing Police Commissioner and is mandatory for any establishment serving food to the public. It legitimizes your restaurant’s operations and costs around Rs. 300 for a three-year period.

Q5. Do I need a fire safety certificate to start a restaurant?

Ans5. Yes, a Fire Safety License or No-Objection Certificate (NOC) is required to ensure your restaurant is compliant with fire safety regulations. It is issued by the local fire department and currently has no application fee.

Q6. How do I get a Health or Trade License for my restaurant?

Ans6. You can apply for a Health/Trade License through the local municipal authority. It certifies your restaurant complies with health standards and may take up to 60 days to be issued. Costs vary from Rs. 500 to Rs. 50,000 depending on location and size.

Q7. Is a Music License required for background music in restaurants?

Ans7. Yes, a Music License from Phonographic Performance Limited (PPL) is necessary if you plan to play recorded music in your restaurant. Operating without this license can lead to legal penalties.

Q8. What is a Shop and Establishment License and who issues it?

Ans8. The Shop and Establishment License registers your business under the local labour department and must be acquired within 30 days of starting your restaurant. Fees range from Rs. 200 to Rs. 4,000 annually.

Q9. Do I need environmental clearance to run a restaurant?

Ans9. Yes, a Certificate of Environmental Clearance ensures your restaurant operations do not negatively impact the environment. This is especially important for restaurants using large quantities of fuel or disposing of waste.

Q10. Why is a Signage License important for restaurant marketing?

Ans10. A Signage License allows you to legally promote your restaurant using outdoor advertisements like banners, boards, or wall paintings. It is issued by the local municipal authority and ensures compliance with advertising norms.

Getting a food license is a crucial step to start a restaurant business and avoiding costly fines. Talk to a lawyer to understand the license requirements and registration process.

Adv. Nandini Natarajan

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With 8 years of independent practice, Advocate Nandini Natarajan has gained extensive experience in handling legal cases while providing legal consultancy and advisory services with a focus on achieving results in an ethical and professional manner. Advocate Nandini Natarajan, who can speak English, Tamil, and Telugu, possesses excellent communication skills that enable her to articulate arguments persuasively in both written and verbal forms.

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