The Restaurant Times

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The Ultimate Guide

For Acquiring All The

Licenses
Required For Opening A
Restaurant In India

www.posist.com
Content 1 Introduction..........................................................1

2 List of Licenses For Opening

A Food Business.................................................. 2

Fine Dining, Casual Restaurant, Quick Service

Restaurant (QSR), Restro-Bar and Food Truck

4 Conclusion............................................................ 4

INTRODUCTION
Before you open a restaurant, it
is critical that you have all the nec-
essary licenses in place. Due to the
strict regulations being enforced by
the government, and the consumers
becoming more health conscious
and picky about their choice of din-
ing establishments, licenses have
become a critical aspect of running a
food business.
You should apply for the different
licenses well in advance, since the
01 | Introduction
process of procuring these licenses
could take up a long time.
With the varied food businesses op-
erating in India, restaurant licenses
differ based on primarily the type of
food and services you are offering,
and the location.
This e-book will serve as a compre-
hensive guide for procuring the li-
censes your require for running a
restaurant legally in India.
01 | The Restaurant Times
List Of Licenses
For Opening A
FOOD BUSINESS

02 | The Restaurant Times

 02 | List of Licenses For Opening A Food Business

Licenses Required For Operating Different

Types Of Food Businesses

Quick Service
Restaurant
FSSAI Food Safety &
Standards License
Health/Trade License
Eating House License
GST Registration
Fire Safety License Restro-Bar
Lift Clearance
Music License FSSAI Food Safety &
Signage License Standards License
Health/Trade License
Eating House License
GST Registration
Liquor License
Fine Dining Fire Safety License
Lift Clearance
FSSAI Food Safety &
Music License
Standards License
Signage License
Health/Trade License
Eating House License
GST Registration
Liquor License
Casual
Fire Safety License
Lift Clearance Restaurant
Music License
Signage License FSSAI Food Safety &
Standards License
Health/Trade License
Eating House License
Food Truck GST Registration
Liquor License
FSSAI Food Safety & Fire Safety License
Standards License Lift Clearance
Health/Trade License Music License
Eating House License Signage License
GST Registration
Fire Safety License
NOC From Regional
Transport Office (RTO)

03 | The Restaurant Times

 02 | List of Licenses For Opening A Food Business

1. FSSAI Food Safety And Standards

License(FSSAI License)

FSSAI License, also known

as “Food License” is one
of the most mandatory li-
censes you need to have
when starting any restau-
rant.

The Food Safety And Stan-

dards Authority Of India
(FSSAI) is the one responsi-
ble for providing the Food
License.

This license is not merely a license, it
also serves as an approval by the au-
thority and assures the patrons that
the food of that particular restaurant
affirms to the food safety standards
of India.
They provide a unique 14 digit regis-
tration number to the manufactur-
er, traders, and restaurants which
should mandatorily be printed on
the food packages.

DOCUMENTS REQUIRED TO APPLY FOR FSSAI LICENSE

Proof Of Expected Annual Turn- By Government Authority

over (Self-Attested) Analysis Report (Chemical And Bac-
List Of Directors With Full Address teriological) Of The Water To Be
And Contact Details Used For Cooking From A Recog-
Food Safety Management Plan Or nized (ISI Approved) Laboratory
Certification (If Any) No Objection Certificate (NOC)
Declaration Form From The Owner Or The Partner
Photo ID And Address Proof Issued Medical Certificates Of Employees

04 | The Restaurant Times

 02 | List of Licenses For Opening A Food Business

How To Get The

FSSAI License
You can log in to the FSSAI website,
complete the sign-up process by cre-
ating a username for the registration.
Then sign in to your account and fill
up the online application with all the
required documents. When apply-
ing for a new FSSAI license you will be
charged a fee of INR 7,500. This fee
has to be paid annually.

Submit the printout of the filled up on-

line application form to the Regional/
State Authority with all the supportive
documents within 15 days from the
date of making the online submission.

2. Health/Trade License

The 11th schedule of the Mu-

nicipal Corporation Act (1957) is
about Health Trade License. It
came into existence from the con-
cern that public health must be
given the supreme importance.

This license is generated by the

local civil authorities like the
State’s Municipal Corporation or
the Health Department.

05 | The Restaurant Times

 02 | List of Licenses For Opening A Food Business

DOCUMENTS REQUIRED TO APPLY FOR HEALTH/TRADE LICENSE

Sanction and Completion (Includes Power And Water Paid Bill

Ownership Proof, rent Agreement
or NOC from Landlord)
Three Copies Of The Site Plan And
Layout
Indemnity Bond Of INR 100
Structural Stability Certification
Signed By Structural Engineer
Sewer Connection Proof
Water Testing Reports
Plan Of The Premises
Medical Certificates Of The Em-
ployees
Proof Of Property Tax
Lal Dora Certificate, If Applicable

How To Get The

Health/Trade License
You can apply for this license
either at the CSB or online. The
forms are available at the State’s
Municipal Corporation website
or Zonal Citizen’s Service Bu-
reaus.

The license is generally issued

within 60 days of submitting
the application form. It will cost
you approximately INR 500 to
INR 50,000, depending on your
restaurant concept and size.

06 | The Restaurant Times

 02 | List of Licenses For Opening A Food Business

3. Eating House License

The Eating House License is is-

sued to a place where different
kinds of food and drinks are
served for consumption of the
general public.

The Eating House License is

provided by the Licensing Po-
lice Commissioner of that city
where you would want to open
the restaurant

DOCUMENTS REQUIRED TO APPLY FOR EATING HOUSE LICENSE

Documents to prove the legal occu- Residence proof of the applicant

pancy of the place of Eating House
and in the case of tenancy, NOC
from the landlord
Site Plan containing details of the
size of Eating House
Photographs of the place showing
its usage as an Eating House
Photocopy of Valid NDMC/MCD/
DCB/Airport Authority of India
trade license and free receipt.
An affidavit on the stamp paper of
Rs 10 duly attested by Notary Pub-
lic
Fire NOC, if the seating capacity of
the eating house is 50 or more
Undertaken with regard to amuse-
ment activities
Undertaking regarding the instal-
lations of CCTV Cameras with 30
days recording facility

07 | The Restaurant Times

 02 | List of Licenses For Opening A Food Business

How To Get The

Eating House License

The applicant will have to first
register himself/herself on the
specific website. After you are
successfully registered, 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 appoint-
ment. Self-attestation of all the
documents you place is a must
since it will ensure validation.
The Eating House License will
cost you INR 300 for three years.

4. GST Registration

GST that came into force

since 1st of July, 2017, has
kept everyone hitched to
it with frequent changes.
Registering in GST is one of
the major things that your
restaurants must do, that
will ensure that your restau-
rant runs seamlessly.

08 | The Restaurant Times

 02 | List of Licenses For Opening A Food Business

DOCUMENTS REQUIRED TO APPLY FOR GST REGISTRATION

Allotment and possession letter partners

from Authority / Transfer Memo-
randum.
Copy of Registered lease deed.
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 propri-
etor/all partner.
Mail ID and Mobile No. to receive
OTP & Verification links of all
Latest Bank Statement containing
Name, Address and IFSC Code of
Branch of Bank.
List of Item to be traded ( if you
want to sell stuff over the counter
also)
List of Item to be traded/manufac-
tured
Digital Signatures of authorized
partners
Authority Letter in favor of dealing
partner

After 15th November 2017, GST has

made it more lucrative to oprn new
restaurants or food joints and just pay
5% with no hassles of ITC, that is, the
extraction of input credit from ven-
dors across India. Hence, there can’t
be a better time for expansion in this
industry than this.

- Rishabh Sawansukh
Founder of GST Street

09 | The Restaurant Times

 02 | List of Licenses For Opening A Food Business

How To Get

GST Registration
For Your Restaurant

Individual, Partnership firm or

Registered Company can obtain
the GST registration by filing
necessary documents online.

GST registration is absolutely

free and can be easily applied
for on the Government’s office
GST website.

5. Liquor License

If you wish to serve al-

cohol or have a fully
functioning bar area it is
mandatory to obtain a Li-
quor License. Every state
government in India has
a different set of rules
when it comes to obtain-
ing the liquor license.

10 | The Restaurant Times

 02 | List of Licenses For Opening A Food Business
DOCUMENTS REQUIRED TO APPLY FOR LIQUOR LICENSE
Application in prescribed form duly
signed by M.D./Authorized Direc-
tor/ Authorized Working Partner/
President or Secretary of the
Society.
Identity proof and Address Proof of
applicant
Premises Address Proof
Liquor Licenses are issued with a lots
of ifs and buts, and location plays a
very crucial role here. No licenses are
issued to outlets near temples, hos-
pitals and schools.
- Harish Acharekar
Head of Beverages, The Table
An affidavit stating the details of
the company/firm with sale fig-
ure all over India and Ex-distillery
price(EDP)
Product declaration of the brands
applied
ENA Certificate – neutral alcohol
(double distilled) / Extra neutral al-
cohol
An Affidavit regarding the genuine-
NOC from the fire department
NOC from the municipal corpora-
tion
List of Directors in case of a com-
pany
Photograph of an authorized per-
son
Processing Fee of Rs.5000/-
ness of foreign TMC
Copies of Excise Verification Certifi-
cate for sale verification
Sale Verification Report
Certificate of sale figure & EDP
from Excise Authority
License copy of Distillery/Brew-
ery/Bottling Plant from where the
brand is being manufactured/bot-
tled
11 | The Restaurant Times
 02 | List of Licenses For Opening A Food Business

Power of Attorney duly signed by Department

authorized Director/MD/Appoint-
ment of Attorney by the applicant
Copy of Latest IT Return/ Copy of
PAN Card/Copy of latest IT Assess-
ment order/Copy of Income Tax
Clearance Certificate
No Dues Certificate from Delhi Ex-
cise Department
No Dues Certificate from the VAT
CA Certificate regarding Sale & EDP
of the brands
Chemical Analysis Report of the
brand applied from the Govt. Au-
thorized Lab./other reputed Pvt.
institution
Personal Bond with Surety of Rs 5
Lacs

How To Get

Liquor License
You can procure the license
from the local excise commis-
sioner; this step has been sim-
plified by the government be-
cause the application forms are
now available online on the re-
spective state government web-
site.

The cost of obtaining a liquor li-

cense can be a little expensive.
You need to deposit an initial
security deposit of Rs 10 lakh
and Rs 5 lakh for the license, Rs
5 lakh for L2 license and Rs 2.5
lakh as qualifying fees. Other
than that the registered compa-
ny, liquor companies, and part-
ner firms should have a bank
deposit of Rs 25 lakh.

12 | The Restaurant Times

 02 | List of Licenses For Opening A Food Business

6. Fire Safety License

It is necessary to get the

fire safety license as it will
assure your customers that
your restaurant is safe from
the fire hazard.

A No Objection Certifi-
cate(NOC) from the fire de-
partment is also required
to run a restaurant.

How To Get

NOC 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 on-
line 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.

13 | The Restaurant Times

 02 | List of Licenses For Opening A Food Business

7. Lift Clearance

In case you want to install

a lift in your multi-story
restaurant, you need to
get clearance from an in-
spector from the electric-
ity 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 installation of life, layout, safety gears and
the like.

The fee charged for the inspection is

as follows:
Lift having a speed up to 1 mtr. per sec- INR 520 (each lift)

Lift having a speed up to 1.5 mtr. per sec- INR 770 ( each lift)

Lift having a speed more than 1.5 mtr. per sec- INR 1020 (each lift)

14 | The Restaurant Times


8. Music License
Under the Copyright Act of 1957,
those who play pre-recorded mu-
sic in any non-private, commercial
or non- commercial establishments
must obtain a music license issued
by Phonographic Performance Limit-
ed(PPL).
9. Signage License
Marketing your restaurant
for attracting more cus-
tomers is imperative and
this license will help you
with that.
02 | List of Licenses For Opening A Food Business
Playing music at restau-
rants is common, but,
to play music at your
restaurant, you need to
obtain a restaurant mu-
sic license.
If a restaurant plays music and op-
erates without the said license, they
will have to face legal penalties.
A Music License can cost you INR
3000 to INR 8000 depending on the
size of the restaurant and the occu-
pancy.
15 | The Restaurant Times

If you want to market your restaurant
either through word of mouth, logos,
posters, pictures, and symbols, you
are required to obtain a legal permit
10. NOC From Regional Transport
Office (RTO)
An NOC is an essential document
that certifies that there are no dues
of tax on the vehicle.
DOCUMENTS REQUIRED TO APPLY FOR THE NOC
Registration certificate (RC)
Insurance certificate
Permit and fitness certificate (ap-
plicable for commercial vehicles)
Emission test certificate (pollution
under control certificate - PUC)
Consent of Financier on CMV form
02 | List of Licenses For Opening A Food Business
which is the signage license. You can
obtain this license from local civil au-
thorities like the Municipal corpora-
tions.
If you wish to open a
food truck business you
will require a No Objec-
tion Certificate (NOC).
NOC is a legal docu-
ment issued from the
regional RTO for re-reg-
istration of a vehicle.
This NOC is issued by parent RTO
certifying that there is no traffic chal-
lan, crime or dues is pending against
the vehicle.
28 (if the vehicle is covered by Hy-
pothecation, HPA or a lease agree-
ment
Pencil print of the chassis number
for the CMV 28 form
Photo identity and address proof
16 | The Restaurant Times
 02 | List of Licenses For Opening A Food Business

How To Get

NOC From The RTO

A payment of INR 100 is to be
made in order to obtain a NOC.
Once the application has been
submitted, the RTO will obtain
a report of the vehicle from the
Police authority to check if the
vehicle is involved in any crim-
inal case or stolen. If there are
no outstanding dues or DSA cas-
es pending against the vehicle, a
receipt of clearance is obtained
and No Objection Certificate is
issued. The RTO will take three
business days to issue the NOC
Certificate.

MCD and Food License are the two

most necessary licenses. Fire License
is another essential license for the
safety of the restaurant and the guest.
All these licenses are significant for
getting started and smooth manage-
ment of a brand.
- Dhruv Chawla
Owner, Getafix

17 | The Restaurant Times

 03 | Conclusion

CONCLUSION
Obtaining the necessary license is vital for every restaurateur. They help
you keep away from any legal issues that might hamper the day to day
operations.
If you are found operating your restaurant without the mandatory li-
censes. You can be charged with a heavy penalty.

Therefore, ensure that you have all the required licenses in place before
you open the doors for the general public.

You need specific permits to serve food and drink. A missing or lost per-
mit could mean big trouble for your newly opened operation.

A liquor license might be the first hurdle that comes to mind, but there
are several tricky regulations involved in running a restaurant.

We have documented all the necessary licenses that you will be requir-
ing in order to run your restaurant business seamlessly.

Make use of this document and save yourself from any legal troubles.

18 | The Restaurant Times

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