Do you aim to establish a restaurant in India and know about FSSAI License – fssai registration? But you have no idea where to start or how to get started? Required licences to start a restaurant in India are discussed in this article. It would be easier for you to set up a legally valid restaurant in India if you grow acquainted with such a need. Please keep in mind that the number of licences required to open a restaurant varies by state.
Mandatory License Required to Open a Restaurant in India
A list of fundamental legal licences that must be obtained to open a restaurant in India is as follows:
FSSAI License and fssai renewal
The FSSAI licence is one of the most important licences to get while starting a restaurant in India. The FSSAI is an apex government body that oversees non-profit organisations’ operations in India. The licence of this organisation serves as legal clearance for food businesses, including restaurant owners. Restaurants that have been certified by the FSSAI are given a higher level of respect than those that have not. Customers increasingly prefer to dine at places that have all of the required legal permits, including a food licence.
An Overview on the Type of FSSAI License
Based on the annual sales generated by a restaurant, FSSAI licenses are divided into three categories.
The FSSAI issues FBOs in India with the following necessary licences:
- FSSAI Registration: For FBOs with a turnover of less than INR 12 lakhs per year, FSSAI registration is required.
State License: FBOs with a turnover of more than 12 lakhs but less than 20 crores should apply for a state licence. The annual fee for this licence has been set at Rs 2000.
- Central License: For FBOs with annual sales above 20 crores, a central licence is required. This license’s cost has been set at INR 7500 per year.
The FSSAI licence typically has a 1- to a 5-year validity period.
How to submit an application for FSSAI license & fssai renewal?
The FSSAI will perform a rigorous verification procedure after receiving an e-form and application fee. During the application submission process, the applicant must upload a soft copy of the papers listed below.
- Valid email address and phone number
- A government authority grants proof of identity and address.
- The Restaurant Owner must fill out and sign an FSSAI form.
- list of the stakeholders, as well as verification of their identity.
- Possession of the location/premises must be proven.
Plan for Food Safety Management Declaration
- Municipal Corporations or local bodies must provide a certificate of no objection (NOC).
- Kitchen Layout Plan
- ISI-certified organization’s water testing report Food Category List
- Affidavit of Proprietorship/Partnership Deed (in the event of a partnership firm or a business that operates in many locations)
- Employees’ medical documents
- Apparatus to be utilised
It may appear time-consuming, but if the documents are uploaded correctly, the licencing request will be handled quickly and without problems.
FSSAI License Renewal: Renew Food License Online
The process of renewing the validity of an FSSAI Food License is known as FSSAI License Renewal.
Registration with the FSSAI can be extended for up to 5 years.
Within 45 days, your licence will be renewed.
FSSAI License Renewal Points to Consider
- Here are some key factors to remember throughout the FSSAI renewal process:
- Failure to renew the FSSAI licence may result in a penalty.
- The FBOs existing Food License will be placed in the Renewal Bin 60 days before its expiration date. When an FBOs licence is in the renewal bin, they should apply for renewal as quickly as possible.
- FBOs should apply for a renewal of their food licence 30 days before it expires. In the event of a delay, the Food Operator will be fined a penalty of $100 per day.
- If there are any changes to the renewal application, make sure to contact the appropriate officer, who may be able to give you a tracking ID receipt number.
- To proceed with the FSSAI License renewal, you must accept the warning letter; else, your application will be considered incomplete.
Eating House License
Any business wishing to create a public diner where food and beverages are provided to clients must first get an eating house licence. If you want to open a restaurant, you must file a license application with the state or local government.
Documents required to obtain an Indian Eating House License
- The Fire Department issued a NOC (If the seating capacity is more than 50)
- Photographs, as well as a detailed site plan
- Restaurant documents and the owner’s NOC
- Trade license
- License from the FSSAI.
- MCD/NDMC/DCB/Indian Airport Authority photocopy
- a copy of your business licence, as well as a copy of your current fee receipt
- Installation of CCTV camera recording devices with storage of 30 days’ worth of recordings is the subject of this project.
How to get an eating house license?
- The official portal of the local or state licencing policing commissioner can be used to get an eating place licence.
- Applicants must register for an account on this website and complete the necessary application steps.
- Applicants will be prompted to provide required papers for verification reasons during the application process.
- The cost of obtaining an eating house licence is less than the cost of registering with the FSSAI.
- The charge for obtaining this licence is Rs 300, which must be paid by all applicants.
One of the most important licences for opening a restaurant in India is a health trade licence. In India, obtaining a health licence is needed to operate a business that deals with goods and services that influence the health of the general public.
There are two types of health trade licences:
- Health Care License
- Health Trade license
To receive a health trade licence in India, you must submit the following documents.
- Three copies of the floor plan
- The floor layout is duplicated three times.
- Utility bill copy
- NOC from the landlord and a lease agreement
- Proof of Sewer Connection
- Evidence of Property Tax
- NOC from the local cops
- The restaurant’s floor plan
- Rs.100 indemnity bond
- Structural Engineer’s Certificate of Structural Stability
- The certified lab issues a water testing certificate.
- Employee Medical Certificates
- Certificate for Lal Dora ( for Delhi region)
How to apply for a Health Trade license?
A health trade licence can be obtained from the State’s Municipal Corporation in exchange for a properly completed e-form and normal costs. The application can be submitted via the Municipal Corporation online. If a restaurant owner decides to operate his or her business without a Health trade licence, the owner will face serious fines under Municipal Corporation regulations.
Serving liquor to a consumer without a liquor licence is a crime in the eyes of the law. Obtaining a liquor licence is a time-consuming and difficult process. The licence may be obtained through the local exercise commissioner, and the necessary applications are accessible to the state government online.
An overview of the several types of liquor licences that are currently available;
- L-1 licence – An L-1 licence is required for the wholesale delivery of Indian-made liquor to other licence holders.
- L-3 licence: This is required for hotels that serve foreign liquor to their customers.
- L-5 licence: An L-5 licence is required for hotels that serve liquor in their in-house bar.
- L-19 licence: A L-19 licence is required for registered clubs that serve foreign liquor to their members.
- L-49A licence: An L-49A licence is necessary for providing liquor at parties or weddings in the Delhi region.
A Tavern License is a legal requirement for businesses that make 50% of their earnings from the selling of alcoholic beverages.
Beer & Wine License: A Beer & Wine License allows restaurant and bar owners to serve moderately alcoholic drinks such as beer and wine.
Restaurant License: Establishments that earn less than 40% of their income from the sale of alcohol should get this licence from the appropriate authorities.
Personal Bar licence: A personal bar licence allows individuals to trade alcohol on behalf of a licenced company.
Documents required for LIQUOR license
- Address proof for a restaurant
- A genuine copy of the application and business information
- The Fire Department has issued a certificate of no objection.
- NOC from the municipal corporation
- List of the company’s active directors
- AOA & MOA (if the applicant is an OPC, private limited company or Public limited company)
- Copy of the most recently filed IT returns Applicant photographs
- Affidavit stating that the petitioner has no criminal record
Any company, including dining places and restaurants, with an annual turnover of more than Rs 20 lakhs is required to register for GST.
GST Rates for restaurants
Stand-alone restaurants with air conditioning are subject to a 5% GST.
Hotels with in-house restaurants that charge more than Rs 7500 a night are subject to the 18% GST rate.
GST registration may be obtained through the GST site by completing an online application that requests the following information:
- Details about the applicant
- Contact information and an email address
- PAN card
- Proof of the Business Location
- a copy of the lease or rental agreement
- Legal bank account
- Provisional ID and password obtained from the state’s VAT department
Environmental clearance license
Restaurants are legally compelled to implement necessary environmental protection measures, therefore obtaining an environmental clearance licence is critical (CEC). After completing the environmental evaluation questionnaire, this licence can be obtained from the Ministry of Environment and Forests.
Fire safety license
In all instances, all restaurants are legally obligated to defend the interests of the end-users. They are required to follow fire safety regulations under this jurisdiction. After completing and submitting the application, the Fire NOC may be obtained through the respective state’s Fire Department portal. The licence will be issued by Fire Department officials after an in-depth verification of documentation and an on-site examination of the premises.
For enterprises such as the restaurant that are located in multi-story buildings, a lift licence is required by law. Restaurant operators must get a Lift Clearance License to guarantee that lift operations comply with safety regulations. The Electrical Inspectorate in the Labor Department can issue a lift clearance licence.
You will need a Signage licence if you want to advertise your restaurant using words, photos, or symbols. The Municipal Committee of the appropriate state can provide this licence to restaurants.
If you want to use music and movies to entertain your customers at your restaurant, you’ll need a music licence. The Indian Performing Rights Society can provide you with this licence if you fill out the required application.
Shop and establishment license
Another regulatory need for business establishments in India is a shop and establishment licence. Every business organization in India, including restaurants, is required to get this licence under the Shop & Establishment Act. The Department of Labor of the relevant state provides a shop and establishment licence.
The Shop and Establishment Act regulates the following aspects of commercial establishments:
- opening and closing hours
- Leaves with pay
- Employees working hours
- Hygiene requirement
Insurance Policies for Restaurants
Although it is not the responsibility of the restaurant owner to purchase insurance, you must do so on the four conditions listed below.
- Public Liability
- Product Liability
- Fire Policy
- Building & Asset
- Any licenced insurance provider can protect a restaurant.
Don’t be frightened by the long list of licenses needed to run a smooth business. You shouldn’t have any difficulty acquiring these licences if you have the requested documents on hand. So there you have it: a complete overview of the permits that must be obtained to start a restaurant in India. For fssai certificate, fssai license, fssai renewal and fssai registration, please feel free to contact MUDS, if you require any further information.