Licenses Required for Restaurant in India

10 Licenses Required for Restaurant in India: Registration

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This article on ’10 Licenses Required for Restaurant in India: Registration’ was written by Shashi Yadav, an intern at Legal Upanishad.

Introduction

India is known for its diverse spices thus food melts our hearts, and we can’t say no to one bite of Chole Bhature, companies like Zomato and Swiggy have made it better for customers to order online. We all left tinder and started swiping our cards on Zomato and Swiggy, with delicious food it is also important to have papers, licenses, and registrations from the legal sector. People want to open their restaurants, but they take a step back thinking it is difficult to get all the legal papers and licenses backed up. This article will help you with how you can register and get licenses to start a restaurant in India without any hassle.

Setting up Restaurant

Opening a restaurant is a popular new business. It provides food and beverage wishes to please the guest for a fee. Because of their hectic schedules, many individuals do not eat at home and instead eat at local eateries. With fresh coming chefs and millennials who have begun and have fantastic ideas, there will be a lot of inventiveness.” People may now create small enterprises at a lower cost because of advances in technology. We’ve seen how Korean drama has affected India’s food business, resulting in the establishment of numerous pricey Korean eateries on the streets of major cities like Kolkata and Mumbai.

STEP 1: Searching for the appropriate Association and federations in your area.

This depends on the area where you live for example if an individual is from Delhi then visit the website: https://labour.delhi.gov.in/content/list-industrial-market-associations-federations-delhi, If you’re from another city then search on google “Trade association in (your city/state’s name).

There are private associations too, as one has put their capital into setting up the restaurant it is beneficial to get information from both government associations as well as private associations.

These associations will help you by listing the necessary documents and licenses you need to set up your restaurant.

Licenses Required for Restaurant in India:

FSSAI:

The Food Standards and Safety Authority of India(FSSAI). This license imposes a legal responsibility on the quality of the food which is being sold to the customers.

Documents Required for Basic FSSAI Registration:

  1. Address verification for authorized individuals
  2. A passport-sized photograph
  3. Name and address of the company
  4. Form of FSSAI Declaration
  5. The nature of business specifics

1- State FSSAI License:

 Businesses having an annual turnover between Rs.12 lakhs to 20 crores can apply for an FSSAI state license.

Documents Required for State FSSAI Registration:
  1.  Rental Agreement of Business Premises
  2. ID Proof (Aadhaar Card / Driving License / Passport / Voter ID) of the Concerned Person
  3. If you have any government registration certificates (Company Incorporation Certificate / Firm Registration / Partnership Deed / Pan card / GST Registration Number / Shop and Establishment Registration / Trade License)
  4. If the applicant is a private limited company or a partnership business, they must supply a copy of their MOA and AOA or Partnership deed.
  5. One of the following certificates is required for applying for a State License (Trade license, Shop and Establishment Registration, Panchayat License, Corporation License, Municipality License)
  6. The nature of business
  7. Form of FSSAI Declaration

2- Central FSSAI License:

Businesses having an annual turnover above 20 crores can apply for FSSAI central license.

Documents Required for Central FSSAI Registration
  1. Agreement of Business Premises
  2. ID Proof (Aadhaar Card / Driving License / Passport / Voter ID) of the Concerned Person
  3. (Company Incorporation Certificate / Firm Registration / Partnership Deed / Pan card / GST Registration Number / Shop and Establishment Registration / Trade License)
  4. If the applicant is a private limited company or a partnership business, they must supply a copy of their MOA and AOA or Partnership deed.
  5. Certificate for the IE Code (Import Export Code). (The IE code is required for the export and import categories.)
  6. A letter on corporate letterhead to the relevant individual saying that he is permitted to file an FSSAI application.
  7. List of food categories that would like to be made (In the case of manufacturers).
  • GST number: The Indian government states that to use the GST system, businesses must register for a GST number. Every business, including eateries, must apply for a GST number if its annual revenue exceeds 20 lakhs. If the restaurant is located in a hotel and the room prices exceed 7,500, an 18% GST tax will be added. A GST tax of 5% is applied to standalone restaurants with air conditioning. It is crucial to obtain a GST number so that you may lawfully send your clients a charge.

 Visit the official GST website at https://www.gst.gov.in/, then select Services > Registration > New Registration from the Services menu.

3- Liquor License:

It’s crucial to obtain a liquor license if your business serves alcohol. It is essential to comprehend your state’s alcohol laws before applying for a liquor license because each state in India has its own specific set of alcohol laws, rules, and restrictions. Anyone interested in getting a liquor license should visit the State Excise Department’s website as it is responsible for establishing the state’s alcohol regulations. You may choose the kind and class of license you need to apply for after you have a good understanding of the current liquor laws, rules, and regulations in your state. Visit the official website of your State Excise Department and download the application form for your preferred license type.

4- Health/Trade License:

  1. Visit the relevant state’s municipal corporation online website.
  2. Complete the Health Trade License application form with the necessary information and documentation.
  3. Pay the required tax to the government.
  4. The relevant local authorities will conduct the verification.
  5. The authorities will grant the License upon completion of the verification.

5- Eating house License:

The licensing police commissioner of the city in which you wish to operate the outlet will cost around Rs. 300 for three years. Documents Needed To Get The Restaurant License. The items required to obtain an eating house license for restaurants are listed below.

  1. Documents attesting to the eating establishment’s lawful occupancy, as well as a landlord’s NOC in the case of a tenancy.
  2. Site Plan with information on Eating House size
  3. A photocopy of a current NDMC/MCD/DCB/Airport Authority of India trade license and a free receipt indicating the area’s use as a restaurant.
  4. Evidence of the applicant’s residence.
  5. If the dining establishment has a seating capacity of 50 or more, a notarized affidavit on stamp paper worth Rs.
  6. A project including entertainment activities.
  7. Installation project for CCTV cameras with a 30-day recording capability.

6- Shop and establishment License:

Every shop and establishment in India has to obtain the registration certificate within 90 days of commencement of business.

7- Lift Clearance:

A lift license is necessary for the safe functioning of your restaurant if it is housed in a multi-story structure with elevators. To guarantee that the lift operations adhere to safety standards, restaurateurs must apply for a Lift Clearance License. The electrical inspector at the Labour Commissioner’s office can provide the lift clearance license.

8- Environmental clearance license:

Since restaurants have a moral and legal obligation to contribute to environmental protection, it is crucial to get an environmental clearance license (CEC). The EMA issues this authorization for specific projects or activities. After completing the questionnaire for environmental assessment, you may acquire it from the Ministry of Environment and Forests.

Website: https://moef.gov.in/en/

9- Fire safety license:

All restaurants must be designed to keep customers safe at all times. Restaurants must ensure compliance with all fire safety standards by acquiring a fire license. This must be completed before applying for a No Objection Certificate (NOC). After evaluating the application and ensuring that the applicant satisfies all conditions, Fire Department employees will issue the NOC. State government websites contain applications. There are currently no fees levied on the NOC. Inspection-related licenses are typically issued within 15 to 30 days.

10- Music license:

It is completely permissible to add music and movies to build the mood in your restaurant, but you must do it by the Copyright Act of 1957. Phonographic Performance Limited or the Indian Performing Right Society provided this license.

Licenses Required for Restaurant in India
10 Licenses Required for Restaurant in India: Registration

Conclusion

When a person opens a restaurant, they put in a lot of capital to build the business which also involves dedication, hard work, and enthusiasm. It is important to have legal backing for the restaurant one has almost invested their life’s savings. People often think legal backing is expensive but what’s more expensive than legal backing is losing your business over an insane decision.

References

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