The Ultimate Restaurant Licenses Checklist To Open A Restaurant In India- A 2023 Edition

Are you planning to start a restaurant business? Well, go ahead! However, you must know that starting a restaurant business is no cakewalk! You would need to go through brainstorming sessions on choosing the right location, hiring the right employees, and marketing the restaurant just right. Alongside this, you must also delegate a considerable amount of time in getting the correct licenses required to open a restaurant in India. You do not wish to entangle yourself into a legal trap after you have planned or instead established your restaurant with your sweat and blood. Hence, make sure that you have all your legal papers in place and save yourself from all the unnecessary legal hindrances.

Read on to find out what licenses are required to start a restaurant in India in 2023. 

Licenses Required To Start A Restaurant In India

Here we have listed the most critical restaurant licenses required to open a restaurant in India, which will ensure that your restaurant operates legitimately. 

1. FSSAI Food Safety And Standards Authority License

The FSSAI license, also known as the Food License, is one of the essential permits required to open a restaurant and is obtained from the FSSAI (Food Safety and Standard Authority Of India). This license is not merely a license; on the contrary, it also serves as an approval by the authority. It ensures the customers that the food of that particular restaurant affirms to the food safety standards of India. This license is necessarily a unique 14-digit registration number that is given to manufacturers, traders, and restaurants which should mandatorily be printed on food packages. This confirms to your consumers that they are dining at the right place, which adheres to all the safety standards. Learn how the FSSAI License can also be used as a means to attract customers to your restaurant here.

1.1. Documents Required For The FSSAI License

Here we have mentioned below the list of materials that are needed to apply for the FSSAI License.

• Id Proof and Address Proof 
• Valid Email Id
• Phone Number
• Affidavit
• Declaration Of Food Safety Management Plan
• Kitchen Layout Plan
• List Of Food Category
• Water Testing Report from ISI-approved Facility
• No Objection Certificate (NOC) from the owner or the partner
• Medical Certificates of Employees

1.2. How To Obtain The FSSAI License For Your Restaurant

Once you have these documents in place, you can apply for the license, which would approximately cost you around Rs.2000/Year for a state licence, and ₹7500/year for a central license. The application process is rather simple, and you can log in to the FSSAI website, complete the sign-up process by creating a username for the registration. Then sign in to your account and fill up the online application with all the required documents. Submit the printout of the filled-up online application form to the Regional/State Authority with all the supportive documents within 15 days from the date of making the online submission, to ensure that your application is considered.

📚 Suggested Read: Restaurant FSSAI License Registration Steps And Guidelines

2. Liquor License

If your restaurant serves liquor, then procuring the Liquor License is a must. This can be obtained from the Local Excise Commissioner, and the forms are available at the respective State Government websites. Having this license is exceptionally crucial since if you sell liquor without the above-said permit, you can incur a huge penalty and also be forced to shut down the premises permanently. 

2.1. Documents Required For The Liquor License

Here’s the list of documents required for getting the Liquor License for a restaurant and bar.

• Documentary proof regarding the legal status of the restaurant or the hotel that is, whether it is a company, partnership firm, or any other type of setup
• Whether the restaurant or the hotel is in legal possession of the plot
• A certificate that validates the completion of the restaurant or the hotel building
• Trade License from the Local authority, that is, MCD/NDMC or such other authorities
• Certificate of registration of Eating house license issued by the DCP.
• Documentary proof regarding the applicant being an Income Tax Assessment and Sales Tax-Assesse. 
• A complete layout plan of the establishment, site plan of the license outlets and the liquor stores
• NOC from the state Fire Service

2.2. How To Obtain the Liquor License For Your Restaurant & Bar

Once the documents are served, the concerned Excise Officer inspects the restaurant or the hotel premises, and he then submits a report to the liquor granting authority. After approval, the applicant has to provide the fees as per the guidelines, and then the license is issued. The fee guideline goes like this: You will have to pay Rs. 5,000 at the time of submission of the documents, and an additional Rs 50,000 is required for each spirits brand, like whiskey, rum, gin, brandy, vodka and the like. It is a known fact that obtaining a liquor license for your restaurant is by far the most difficult one since the government verifies all the details with an eagle’s eye. 

• Delhi   
• Mumbai 
• Kolkata 
• Bangalore 
• Chennai 

3. Health/Trade License

The 11th schedule of the Municipal Corporation Act (1957) is about the Health Trade License. It came into existence from the concern that public health must be given supreme importance. This license is generated by the local civil authorities like the State’s Municipal Corporation or the Health Department. 

3.1. Documents Required For The Health/Trade License

Here is the list of documents required to get the Health/Trader License for your restaurant.

• Sanction and Completion (Includes Ownership proof, Rent Agreement or NOC from landlord) 
• Three copies of the site plan and layout
• Indemnity bond for Rs. 100
• Structural Stability Certificate signed by Structural Engineer
• Power and Water paid Bill
• Sewer Connection Proof
• Letter from Delhi police is also required for swimming pools, cinema halls, and hotels 
• Water Testing Reports
• Plan of the Premises
• Medical Certificates of Employees
• Proof of Property Tax
• Lal Dora Certificate, if applicable
• Medical Fitness Certificate of Workers 

3.2. How To Obtain The Health/Trade License For Your Restaurant

The application process for obtaining the Health/Trade License for restaurants is rather easy, and it will cost you approximately around Rs.500-Rs.50,000. A restaurateur can apply for a Health/Trade License either at CSB or apply online for it. The forms are available at the State’s Municipal Corporation website or Zonal Citizen’s Service Bureaus. The license is generally issued within 60 days of submitting the application form. Municipal Corporations hold the power to shut down restaurants that do not have this license. 

Links for the Health/Trade License for the major cities:  

• Delhi 
• Mumbai 
• Kolkata 
• Bangalore 
• Chennai 

4. Eating House License

The Eating House License is provided by the Licensing Police Commissioner of the city, where you would want to open the outlet. The approximate cost required to issue this license is Rs. 300 for three years. 

4.1. Documents Required For The Eating House License

Here’s a list of materials that are needed to get the Eating House License for restaurants.

• Documents to prove the legal occupancy of the place Eating House and in the case of tenancy, NOC from the landlord
• Site Plan containing details of the size of the Eating House
• Photographs of the area showing its usage as an Eating House 
• Photocopy of Valid NDMC/MCD/DCB/Airport Authority of India trade license and free receipt. 
• Residence proof of the applicant
• An affidavit on the stamp paper of Rs 10 duly attested by Notary Public 
• Fire NOC, if the seating capacity of the eating house is 50 or more
• Undertaken about amusement activities
• Undertaking regarding the installation of CCTV Cameras with 30-day recording facility 

4.2. How To Obtain The Eating House License

The applicant will first have to register himself or herself on a specific website. After you are successfully logged in, you will receive a User ID and Password for submission of forms. Using the user ID, you can fill up the form, upload all the necessary documents, and fix an appointment. The self-attestation of all the materials you place is a must since it will ensure validation. 

Links for the Eating House License for the major cities: 

• Delhi 
• Mumbai 
• Kolkata 

5. Shop And Establishment Act

To run a food business in India, you must register your restaurant under the Shops and Establishment Act, be it a Food Truck or a Fine dining restaurant. You need to register your restaurant within 30 days of the commencement of your business. The cost of this license varies between ₹6,500 and 15,500, depending on factors such as the number of employees and the restaurant’s location.

5.1. Documents Required For The Shop And Establishment Act License

• Pan Card 
• Identity Proof
• Address proof of the proprietor, partner or the company
• Details of the employees

5.2. How To Obtain The Shop And Establishment Act License

Once you have arranged all the documents mentioned above, you can submit them with the application form. Your form should indicate the name of the shop, the postal address of the establishment, and the proof of ownership, such as the Rent Agreement or Shop Lease Papers to the Local Chief Inspector of the shop or other Inspectors. Once the government officials verify all the documents, he registers the restaurant in the Register of Establishment and issues a registration certificate. This certificate must be explicitly displayed at your restaurant and must always be renewed before its expiration. You will obtain this license within 7-10 working days. If you wish to change any information, you must inform the Inspector within 15 days so that he can then make the changes in the register of the establishment and issue a fresh registration certificate. It is also mandatory to inform the local Inspector regarding the closure of the business within 15 working days 

Links for the Shop Establishment License for the major cities: 

• Delhi
• Mumbai
• Kolkata
• Bangalore 
• Chennai 

6. GST Registration

GST which came into force on the 1st of July, 2017, has kept everyone hitched to it with these frequent changes. Both the restaurant industry and the government have been at loggerheads for a long. Even then, registering in GST is one of the essential things that your restaurants must do, which will ensure that your restaurant runs seamlessly. 

6.1. Documents Required For The GST Registration Of Your Restaurant

Below is the list of documents required to get the GST registration needed for your restaurant.

6.2. For The Proof Of Ownership/Tenancy Rights Of The Business Premises:

• Allotment and possession letter from Authority / Transfer Memorandum. 
• Copy of Registered lease deed.

Or,

For Rent Agreement And Electricity Bill Of The Owner Of The Property:

• Copy of Pan Card of Proprietor/Partnership Firm.
• Copy of the Partnership Deed 
• Copy of Aadhar Card of Proprietor/all partners
• One passport-size photo of the proprietor/all partners.
• Mail ID and Mobile No. to receive OTP & Verification links of all partners
• Latest Bank Statement containing Name, Address, and IFSC Code of Branch of Bank.
• List of Items to be traded ( if you want to sell stuff over the counter also) 
• List of Items to be purchased/manufactured
• Digital Signatures of authorized partners
• Authority Letter in favor of dealing partner

6.3. How To Get The GST Registration Of Your Restaurant

Yes, if you are thinking of taking a big bite or leap of faith, it is easier to start your billing and business now. This is because GST registration is a simple process wherein an Individual, Partnership firm or Registered Company can obtain by filing necessary documents online at www.gst.gov.in.

The confusion regarding GST has been going around for quite some time now. With the increasing changes, both the restaurant owners and the diners are living in this constant apprehension of further changes that might be incorporated. However, several channels are trying to make things easier for the restaurant owner, GSTStreet is one such platform.

7. Fire Department

The restaurant’s ulterior motive must be to protect its customers from all things dangerous, be it food products or hazards such as a fire. A No Objection Certificate (NOC) from the fire department is also required to run a restaurant.

7.1. How To Get A No Objection Certificate From The Fire Department

For this, a restaurant needs to register for NOC from the State Fire Department before the building construction starts. Applications can be found online on the state government website. After having all the safety equipment in place, you must invite the Chief Fire Officer for inspection and get the NOC. There is no fee required for NOC as of now. 

Links to the Fire Department License for the major cities :

• Delhi 
• Mumbai 
• Kolkata 
• Bangalore 
• Chennai 

8. Lift Clearance

In case you want to install a lift in your multi-story restaurant, you need to get clearance from an inspector from the electricity department as well as the Labour Commissioner of that specific city. The Electrical Inspector issues this license from the office of the Labour Commissioner after verifying the installation of life, layout, safety gear, and the like. State-wise applications are available for obtaining lift clearance.

8.1. How To Get The Lift Clearance For Your Restaurant

Links for the Lift Clearance for the major cities: 

• Delhi 
• Mumbai 
• Kolkata 
• Bangalore 

9. Music License

Don’t you, as a restaurant owner, love to play the trending songs at your restaurant? It is not only you, but the customers love it too. But, to play music at your restaurant, you need to obtain a restaurant music license. Under the Copyright Act of 1957, those who play pre-recorded music in any non-private, commercial or non-commercial establishments must obtain a music license issued by Phonographic Performance Limited (PPL). If a restaurant plays music and operates without the said license, it will have to face legal penalties. 

For more information on getting a music license for a restaurant and online registration, visit this website.

10. Certificate Of Environmental Clearance

The restaurant is not only responsible for ensuring the health of the customers, but they are also legally and morally bound to ensure that its operations must not negatively harm the nature of the mother earth. Hence, restaurants are also expected to apply for the Certificate Of Environmental Clearance. 

10.1. How To Get The Certificate Of Environmental Clearance for Your Restaurant

Acquiring the certificate also involves screening, scoping, and evaluation of the project to examine its impact on the environment. You will have to submit some documents to obtain CEC along with the application, and they are The Environmental Impact Assessment Report (EIA) or the Environment Management Plan (EMP), details of a public hearing, and NOC granted by state regulators. 

For the application of environmental clearance, visit this website.

11. Signage License

You need to market your product well which will ensure that your business helps you garner the maximum profit. However, if you want to sell your restaurant either through word of mouth, logos, posters, pictures, and symbols, you are required to obtain a legal permit, which is the signage license. You can get this license from local civil authorities like the Municipal corporations.

12. Restaurant Insurances

Although there are no rigid guidelines for obtaining restaurant insurance, you must insure your restaurant for the following four causes:

• Public Liability: It covers legal and financial obligations if a customer or third party is injured or their property is damaged while on your restaurant premises. 

• Product Liability: It protects your restaurant if a customer falls ill or develops any disease harm from consuming food or beverages served by your establishment. 

• Fire Policy: It covers any damage or loss caused by fires to your restaurant’s property, including equipment, furnishings, and inventory.

• Building & Asset: It protects your restaurant’s physical assets, such as the building itself, equipment, and inventory, against various perils like theft, vandalism, or natural disasters.

You can obtain these insurances from any legally registered entity. However, the specific requirements and processes for securing insurance may vary depending on your location and the insurance provider.

These are the licenses required to open a restaurant in India, and these are the papers that will legally permit you to carry on with your restaurant business without getting involved in legal hindrances. Follow this guide, visit the pages and apply for the licenses if you haven’t already!