• Adarsh Gupta

LICENCES YOU REQUIRE PRIOR TO RUN YOUR RESTAURANT



The Indian food industry is projected to grow at a compounded annual growth rate of approximately 10% per year (2020-2025). This fact showcases the story of the surging food and beverage industry in post-pandemic times. New F&B businesses are kicking up from quick-service restaurants, contemporary casuals to ghost/cloud kitchens or food trucks businesses. Opportunities and innovations in the F & B business takes it to heights. It will be the most preferable and profitable business in the near future. So if you're thinking of cementing your feet in the food and beverage business, it's quick time, or I must say it's your time.


Licences have always been the backbone of every business especially when it comes to food and hygiene, they become quintessential. Today I'll be detailing to you about every kind of license you require to owe before you set up a restaurant. Lets begin here,


  1. FSSAI LICENSE -


Food Safety and Standard Authority of India grants you the food license or FSSAI license, the most basic and necessary license and grants the owner legal permission to operate a restaurant. There are 3 kinds of FSSAI license

  • FSSAI Registration- Food Business with a turnover of up to Rs.12 lakhs per year.

  • State License- Food Business with turnover between Rs.12 lakhs and Rs.20 Crore per year.

  • Central License- Food Business with a turnover of Rs.20 Crore and above per year.

HERE HOW TO APPLY - FSSAI license can be applied from the portal itself at https://foscos.fssai.gov.in/ for a maximum of 5 years and can be renewed periodically.

DOCUMENTS REQUIRED - Proof of possession of location, food management program, water certification by ISI certified organization, kitchen layout plan, list of food category, affidavit of proprietorship, etc needs to be uploaded to carry the process without any delays. The FSSAI user guide is here to help you check-in.

  1. EATING HOUSE LICENSE -

Eating house license becomes mandatory when you begin up a public eatery where food and beverages are sold for consumption organized in the dining system.

HERE HOW TO APPLY - For an eating house license, you can apply on the website of the city, where your restaurant is, or at the state licensing police commissioner. The eating house license would cost you something around Rs. 300.

Documents required - fire NOC, site plan, 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

  1. HEALTH LICENSE / TRADE LICENSE -

While applying for FSSAI, a health license is required that can be issued by the municipal corporation or any local authority, or the health department just to ensure the public health is not compromised while handling foodstuff.

HERE HOW TO APPLY - to receive your health license you can apply online or the forms are available at the State's Municipal Corporation website or Zonal Citizen Service Bureaus. The cost of a trade license is based on the location of the restaurant.

DOCUMENTS REQUIRED - site plan and layout of restaurant, property papers NOC signed by the landlord, sewer connection and water and electricity bills, water testing reports, medical certificate of employees, Lal Dora Certificate, if applicable (only in Delhi)

  1. LIQUOR LICENSE -

Owning liquor is quite tiresome since you need a permit from state authorities and selling liquor without licenses is illegal and a punishable offense. If your restaurant is serving the liquor be it India, or international or imported liquor in a star hotel or bar, or any pub, you need to owe different licenses. They are listed down.,L-6 – Granted for retail vendors for liquor and beer by the state government

  • L-10 - granted for the sale of foreign liquor or select Indian brand.

  • P-10 -Granted to serve liquor at a function on a specific day for anywhere in the city.

  • P-13 - temporary license provided to hotels, pubs and restaurants that are licensed to sell liquor inside or outside the premises.

HERE HOW TO APPLY - An application for a liquor license to be submitted to the concerned state authority, they’ll verify the documents and assist you further.

DOCUMENTS REQUIRED - address proof of restaurant, NOC from fire and municipal department, an affidavit on the name of the user who should not bear any criminal record. MOA and AOA if the applicant is a company, latest IT returns, etc.

  1. GST REGISTRATION -

Restaurant businesses worth 20 lakh turnover or more are required to have a GST number. Standalone restaurants with AC are required to pay 5 % GST.

HERE HOW TO APPLY - Application for GST Registration can be made online at https://reg.gst.gov.in/registration/ It normally takes 5-7 days to get your GST Registration once the application is made with the required documents.

DOCUMENTS REQUIRED - applicant personal and business details, pan card, and ID proof, valid bank account, business rental agreement or proof place of business, Provisional ID, and password received from the state’s VAT department.

  1. ENVIRONMENT CLEARANCE -

An Environmental clearance license is a must to compensate for all the destruction human society brings to nature collectively. This license permits you to use nature sustainably with responsibility.

HERE HOW TO APPLY - you can apply for this permit online at the ministry of environment and forests at https://moef.gov.in/en/ .

DOCUMENTS REQUIRED - applicant personal details, business details, proof of the location of the business, rent agreement signed by the landlord, etc.

  1. FIRE SAFETY LICENSE -

Since restaurants require fire of almost all kinds (gas flames to more pressurized fires), which bears a high risk of catching fires, so including fire safety systems become quintessential for any restaurant. Restaurants need to comply with fire safety guidelines. The fire department would grant you a NOC after carrying on inspection if you fulfill every criterion.

HERE HOW TO APPLY - you can apply online for getting a fire clearance/NOC on the website of the respective state government which has no charges at all.

DOCUMENTS REQUIRED - personal information of the applicant, business details, proof of the location of infrastructure, etc.

  1. LIFT CLEARANCE -

If your restaurant is in a multi-storied building that uses a lift to displace men and material you ought to get a lift clearance license and you comply with all the safety norms for using lifts.

HERE HOW TO APPLY - you can apply for this permit at the labor commission where the electrical inspector gets you the permit after inspecting your premises.

  1. MUSIC LICENSE -

If you want your restaurant to catch the consumer through the music and ambiance, you can do so after getting a permit from Phonographic Performance Limited or the Indian performing rights society.

HERE HOW TO APPLY - you can apply directly from the website https://www.pplindia.org/

  1. SHOP AND ESTABLISHMENT LICENSE -

Any business with more than 10 employees needs to be registered under a state labor commission that works for the welfare of the employee under the Shop and Establishment Act. This act regulates working hours, overtime pay, intervals for rest, public holidays, leaves, etc of the employees.

HERE HOW TO APPLY - you can register your business on respective state websites or submit an application to the state inspector. The application has to be submitted within 30 days of working. This process is carried by verification and review by the chief inspector, after which a registration certificate would be granted to the occupier which will be valid for 5 years and has to be renewed after time.

DOCUMENTS REQUIRED - personal information, name, and address of the employer, category of establishment, employee details, business details, etc.

The list of licenses takes time to wrap up. If your dining has any extraordinary extensions, you may require licenses for the same as well. We at https://www.estandardz.com/ help you through getting all the licenses and permits sanctioned in no time and with no effort. Documentation work would never hinder your dream restaurant in its functioning. Have a beautiful journey in the train of F & B business.



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