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6 Major Licenses required for Restaurant in India

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6 Major Licenses required for Restaurant in India

It can be exhausting to open and get the license required for a restaurant.

Firstly, selecting a concept, after that, locating the perfect spot, hiring qualified workers, obtaining licenses, and further properly marketing the business.

However, getting a restaurant license is a cakewalk if you know the appropriate laws and have the right information.

The article will assist you in learning the legal processes and obtaining the license required for restaurant of your dream.


Licenses Required

 

Mandatory for any restaurant

  • FSSAI license
  • Shop act
  • Business registration
  • Liquor license in case the restaurant serves liquor
  • Eating house license in case of some states.
  • Fire safety certificate/NOC

 

Additional licenses that may be required on case to case basis.

  • License for lift
  • Health trade license
  • Environmental license
  • Music license in case of a loud music facility

 

Trademark registration online is an easy online process and is also recommended if you want your restaurant name to be secure.

 

We at StartEazy can help you get the licenses and register your business smoothly. Therefore, you can focus on what you do best and take our help in what we do best.

 

In India, licenses are a must for a Restaurant.

 

The most valuable permits to get when opening the restaurant are described here, moreover, it guarantees that the restaurant works legally.

 

Here are the details for

 

1. FSSAI Certification

 

The FSSAI license obtained from the food safety authority of India (FSSAI) is important to start a restaurant.

 

Above all, it guarantees consumers that the food at that particular eatery meets India's standards of food safety.

 

Therefore, manufacturers, traders, and restaurants must have a 14-digit listing number. Most importantly, all food packages should have them printed

 

Documents needed for FSSAI license

 

  • Identity and address proof
  • Email address
  • Mobile number
  • Testimony
  • System of food safety  
  • Kitchen design
  • Menu
  • ISI-approved water testing report
  • Certificate of no objection (NOC) by owners or partners

 

Steps to register for FSSAI License

 

You can apply for the license required for a restaurant with the documents in hand following these steps:

 

  • Firstly, visit http://foodlicensing.fssai.gov.in to find if you are eligible for filing.
  • Secondly, fill the form of the criteria you've chosen, then activate your account.
  • Thirdly, sign in and fill the appeal form. Meanwhile, check the documents wanted for the criteria you've chosen.  
  • After that, submit the application and print a copy. After that, with the reference number, you can track the status of the application.

 

Following the letter of the appeal, the authorities review it and conduct an examination.

If the inspection is done successfully, they forward the report to the relevant authority, and the license required for restaurant is issued.

However, this process could take up to 60 days.

 

FSSAI License Cost

 

The fee of FSSAI for the application process differs depending on the category.

 

  • FSSAI Registration – Rs. 100/- per annum
  • FSSAI State License – Rs. 2000/- to rs. 5000/- per annum
  • FSSAI Central License – Rs. 7500/- per annum

 

If you are hiring a professional to apply on your behalf, you are charged an additional professional fee.

 

2. Shop and Establishment Act

 

The department of labour regulates the shop and establishment act, governing the space where any trade or business happens.

The shop and establishment act rules many areas, including:

 

  • Working hours
  • Rest intervals
  • Children's employment is banned.
  • Employing a young person or a woman
  • Hours of operation and closure
  • Days of closure
  • Weekly vacations
  • Pay for vacations
  • Wage payment terms and conditions
  • Payroll deductions
  • Policy on leave
  • Dismissal
  • Cleanliness
  • Ventilation and lighting
  • Fire safety precautions
  • Accidents
  • Keeping records

 

3. Business Registration

 

You need to register your business. You can register it in the following ways :

 

  • Company registration
  • Sole proprietorship registration
  • Partnership in case there are partners

 

The tax on goods and services (GST) is imposed in India.

Therefore, 18% GST levies on the restaurant, room service and takeaway added, given by restaurants placed inside hotels with room rates exceeding Rs. 7,500.

But, unlike previous taxes (vat, service tax), this is a single tax. Above all, you can enrol online for GST and have it approved quickly.

 

GST Rates for Restaurants:

 

  • The GST is 5% for restaurants, whether ac/non-ac.
  • GST is 18% for catering outdoor restaurants.
  • Restaurants having more than 1 Cr. Annual turnover or falls under 5% GST slab are not eligible for input tax credit (ITC).
  • If you serve alcohol in the restaurant, GST is not levied on it. However, vat and other state taxes are charged from the customer. 

 

4. Liquor Permit

 

Most importantly, if the restaurant serves alcohol, obtain a liquor license.

You can get it from the local commissioner of excise, and the websites have the form of the particular state governments.

However, you face a large fine or made to close down the restaurant without the license.

 

Liquor License Fee

 

Rs. 13,000 is the normal cost of the alcohol permit. However, to a restaurant, it is Rs.1,50,000. A mandatory fee of Rs.5,000 is charged when you submit the document and Rs.50,000 per added drinks brand.

 

Steps to get a restaurant liquor license  

 

  • Firstly, fill the form from the website of your state government.
  • Secondly, the documents are submitted to the inspecting officer.
  • After that, he submits a report to the authority of issuing liquor licenses.
  • Following approval, the applicant submits the fees, and the license is issued.

 

However, it is difficult to get a liquor license because the government examines the details carefully.

 

5. Eating house license required for restaurant

 

The local police commissioner of licensing issues the eating house permit.

 

Eating house license fee

 

The minimum fee for license issuance is Rs. 300/- per three years.

 

Steps to obtain an eating house license

 

  • First, the candidate creates an account on this site.
  • After that, with the user id, fills the form, uploads all asked certificates and schedule a discussion. Moreover, the self-attestation of documents ensures validation.

 

6. Fire safety certificate

 

Most importantly, a restaurant protects its customers against all hazards in the restaurant. Further, ask for the noc from the fire station.

 

Fire safety license fee

 

No fee for obtaining a noc.

 

How to obtain a fire safety certificate

 

Firstly, the restaurant asks the fire department of the state for NOC. Forms are available on the website of the government.

Subsequently, later request the fire chief officer for a review and get the noc after fixing the protection tools.

After all the procedures are completed successfully, you will get the license required for the restaurant.

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