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All the 10 Licenses Required to

Open a Restaurant in India


CA Govind M Chandak
● Opening a restaurant can be an overwhelming
process.

● You need to choose a restaurant concept, the


right location, hire quality staff, get licenses and
market the restaurant just right.

● With the right rules & knowledge in hand,


even getting a restaurant license can turn
into a cakewalk.

● This document covers the most critical


restaurant licenses required to open a
restaurant, obtaining which will ensure that
your restaurant operates legitimately.

CA Govind M Chandak
JSG & Co.,
1. FSSAI License
● The FSSAI license, also known as the Food License is one
of the most important licenses required to open a
restaurant.

● It is obtained from the FSSAI (Food Safety and Standard


Authority of India).

● This restaurant license also serves as an approval by


the authority and ensures the customers that the food of
that particular restaurant affirms to the food safety
standards of India.

● It is a unique 14 digit registration number that is


given to manufacturers, traders, and restaurants
and is mandatory to print it on all food packages. CA Govind M Chandak
JSG & Co.,
Documents Required 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 categories

● Water testing report from ISI approved facility

● No Objection Certificate (NOC) from the owners/partners

● Medical certificates of employees


CA Govind M Chandak
JSG & Co.,
How to get the FSSAI License for your Restaurant

Once you have the above documents in place, you can apply for the
license. The application process is rather simple:

● Log in to the FSSAI website, complete the sign-up process by


creating a username for the registration.

● Then 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.
CA Govind M Chandak
JSG & Co.,
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.

● If you sell liquor without the above-said license, you


can incur a huge penalty and also be forced to shut
down the premises permanently.

● You will have to pay Rs.5,000 at the time submission


of the documents and an additional Rs.50,000 is
required for each additional spirits brand.
CA Govind M Chandak
JSG & Co.,
Documents Required for the Liquor License
Here’s the list of documents required for getting the Liquor License for
a restaurant or bar:
● Documentary proof regarding the legal status of the restaurant or
the hotel.
● Proof for 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.
● Certificate of registration of eating house license issued by the
DCP.
● Documentary proof regarding applicant being an Income Tax
Assessment and Sales Tax-Assessment.
CA Govind M Chandak
● NOC from the state Fire Service JSG & Co.,
How to get the Liquor License for your Restaurant & Bar

● Go to your state government website to find the form.

● Documents mentioned above should be served to the concerned


Excise Officer who inspects the restaurant or the hotel
premises.He will then submit a report to the liquor
granting authority.

● After the approval, the applicant has to submit the fees as per
the guidelines and then the license is issued.

CA Govind M Chandak
JSG & Co.,
3. Health/Trade License

● This license ensures that your restaurant stands corrected


under the health concerns of the Health Department.

● It will need around 60 days to be issued to you after


your submission of the form and documents.

● The cost could range for Health/Trade License from Rs 500


to 50,000 depending on your state rules and specific
requirements.

CA Govind M Chandak
JSG & Co.,
Documents Required for the Health/Trade License
● 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 Bills
● Sewer Connection Proof
● Water Testing Reports
● Plan of the Premises
● Medical Certificates of Employees
● Proof of Property Tax
CA Govind M Chandak
● Lal Dora Certificate, if applicable JSG & Co.,
How to get the Health/Trade License for your
Restaurant
● The applying process of 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 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 power to shut down restaurants


which do not have this license. CA Govind M Chandak
JSG & Co.,
4. Eating House License

● The Eating House License is provided by the


Licensing Police Commissioner of that
city where you would want to open the outlet.

● The approximate cost required to issue this


license is Rs. 300 for three years.
Documents Required for the Eating House License

Here’s a list of documents that are needed to get the Eating


House License for restaurants:

● Documents to prove the legal occupancy 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.
CA Govind M Chandak
JSG & Co.,
Documents Required for the Eating House License
(contd.)

● 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.

● Undertaking regarding the installations of CCTV Cameras


with 30 days recording facility.

CA Govind M Chandak
JSG & Co.,
How to Obtain the Eating House License

● The applicant will have to first register himself or 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 appointment.

● Self-attestation of all the documents you place is a must


since it will ensure validation.

CA Govind M Chandak
JSG & Co.,
This is how the Application form looks:-
5. Shop and Establishment License

● 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 Dine restaurant.

● You need to register your restaurant within 30


days of the commencement of your business.

● This license is city specific.

● The total cost you would incur for this license amounts
to Rs.200 to Rs.4,000 per year.

● However, the cost is relative as it depends on the


number of the employees and the location of the
restaurant.
CA Govind M Chandak
JSG & Co.,
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

CA Govind M Chandak
JSG & Co.,
How to get the Shop and Establishment Act License
● Submit the application form mentioning the name of the
shop, the postal address of the establishment and
the proof of ownership to the Local Chief Inspector
of the shop.

● Once the government officials verify all the documents,


he registers the restaurant in the Register of
Establishment and issues a registration certificate
which must be explicitly displayed at your restaurant
and must always be renewed before its expiration.

● You would roughly obtain this license within 7-10


working days. If you wish to change any
information, you must inform the Inspector within
15 days. CA Govind M Chandak
JSG & Co.,
6. Fire Safety License

● The restaurant’s ulterior motive must be to protect


their customers from all things dangerous, be it food
products or hazards such as fire.

● A No Objection Certificate(NOC) from the fire


department is also required to run a restaurant.

● There is no fee required for NOC as of now.

CA Govind M Chandak
JSG & Co.,
7. 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 gears and the like.

● State wise applications are available for obtaining


lift clearance.
CA Govind M Chandak
JSG & Co.,
8. Music License

● 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, they will have to face legal
penalties.
CA Govind M Chandak
JSG & Co.,
9. Certificate Of Environmental Clearance

● The restaurant is also legally and morally bound to


ensure that its operations must not negatively harm
the nature. Hence, restaurants are also expected to apply
for the Certificate Of Environmental Clearance.

● 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 like The


Environmental Impact Assessment Report (EIA) or
the Environment Management Plan (EMP), details
of public hearing and NOC granted by state
regulators. CA Govind M Chandak
JSG & Co.,
10. Signage License

● 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 which is the signage license.

● You can obtain this license from local civil


authorities like the Municipal corporations.

CA Govind M Chandak
JSG & Co.,
THANK YOU
CA Govind M Chandak
JSG & Co.,
Pune(MH.),Khandwa (M.P) & Hyderabad (TS.)
+91 8888072889 / 020 25671007
cagmchandak@gmail.com

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