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How to Obtain a Bar and Restaurant License in India - BizAdvisors

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How to Obtain a Bar and Restaurant License in India

How to Obtain a Bar and Restaurant License in India

If you are planning to start a bar and restaurant business in India, you will be required to obtain a bar and restaurant license. As per the growing consumption of liquor, having a bar would be the wisest decision to do a liquor business; it would be a much more profitable business than others. In India, you can’t sell liquor without having a proper license. And getting a license requires extensive paperwork and the same case goes with the restaurant business. Due to the popularity of restaurant foods, it is also ideal to start a restaurant business which again requires a license to run a restaurant business in India. In this article, we will discuss how to obtain a bar and restaurant license in India. There are many licenses one has to obtain before starting a bar and restaurant business, some of them are Liquor License, Eating House License, FSSAI License etc. not only licenses but the owner needs to have GST Registration as well. Without all this your business can attract heavy fine and penalties, hence taking such licenses are mandatory. 

Cost of Bar and Restaurant License in India 

The cost of a license fee varies from state to state and it also depends on the location of a restaurant. The annual fee of a license in top-tier cities is around rupees 10 lakhs. On the other hand, the top 4 tier cities charge 2.5 lakhs rupees annually. In other states, businesses must pay 5,000 rupees as a processing fee for documentation. 

Type of Bar and Restaurant Licenses- 

Liquor License

If you are planning to serve liquor in your restaurant or establish a separate bar for liquor. You need to be required a proper license in India. If you wish to start a bar or serve liquor in a restaurant without a license you shall be facing legal penalties, shutdowns, and legal repercussions. To apply for the same, entrepreneurs must contact their local excise commissioner. Since liquor laws vary from state to state, owners must do research on their local laws to stay compliant and apply accordingly. Therefore, take expert help for understanding the liquor laws of your state and file the appropriate type of Liquor license.

Following are the documents required for a liquor license- 

  • Incorporation certificate 
  • Trade license 
  • GST registration 
  • Completion certificate of a restaurant or bar 
  • NOC from the state fire department 
  • Eating house license registration from the district commissioner 
  • Affidavit ensuring the applicant has no outstanding dues or criminal 

Types of liquor license are given below- 

  • L-1 license — Used to sell Indian liquor wholesale to other licensees.
  • L-3 license — Allows hotels to provide foreign liquor to their visitors in their rooms. (Requires Tourism Department clearance)
  • L-5 license — Allows hotels to offer alcohol in their on-site bars.
  • L-19 license: This license allows registered clubs to serve foreign alcoholic beverages to their members.
  • L-49A license: For supplying alcohol at weddings or celebrations in a certain area of Delhi.
  • Tavern licenses are granted to establishments that make 50% of their revenue from the sale of alcoholic beverages.
  • Beer and Wine License: This license allows restaurants and bars to serve alcoholic beverages like beers and wines.
  • Restaurant licenses are granted to businesses that generate less than 40% of their revenue from the selling of alcoholic beverages.
  • Individuals with a personal bar license can serve alcohol on behalf of a registered and licensed company.

FSSAI license 

All the businesses that are dealing with any food items must need to obtain a license from the Food Safety and Standard Authority of India. This is the most vital license in India, for the establishment of a food products business. FSSAI, certify that the establishment meets the required standard of food safety and security. After getting the certificate from FSSAI[1], owners shall display the 14 digits number on their food products or at the entrance of their business.

 List of documents required for the above-mentioned license is given below- 

  • The applicant’s proof of identity
  • Proof of the applicant’s address
  • Email address and phone number must be valid.
  • Affidavit
  • Plan for food safety management
  • Layout and design of the kitchen
  • Food classifications
  • Report on water testing
  • Certificate of no objection from the business premises’ owners
  • Employees’ medical certifications

Trade license

The bars and restaurant owners must take health and trade licenses as it ensures that the owners are following all the protocols laid down by the health department. It also reduces the possibility of health hazards of the products. It usually takes 60 days to obtain. 

Documents required for this license are given below-   

  • If the business is rented, proof of address and a copy of the leasing agreement are required.
  • Layout and plan of the site
  • An indemnity bond in the amount of $100 is required.
  • Certificate of structural stability
  • Bills for electricity and water
  • Evidence of a sewer connection
  • Letter from the cops
  • Reports on water testing
  • If appropriate, a Lal Dora Certificate

Eating house license 

This eating house license is provided by the district police commissioner, if you are planning to start serving in-house guests. To get this license, owners must submit a form along with necessary documents to the city police. Police will verify the documents, inspect the restaurant, and then they will approve the certificate of the eating house license. 

Documents required for Eating House License are mentioned below-  

  • If the business is rented, proof of address and a copy of the leasing agreement are required.
  • Schematic and site plan
  • Photographs of the company’s location
  • a copy of your business license
  • Identification and proof of address for the applicant
  • Affidavit on a 10-stamp piece of paper
  • The fire department has given them the approval to house more than 50 persons.
  • Installation of CCTV cameras with the ability to capture footage for 30 days.

How to Apply for a Bar and Restaurant License in India 

After submitting the required documents, the government’s agent will analyze the documents, and in some cases, he/she will physically examine the restaurant premise before issuing the bar and restaurant license. In case of missing any vital documents, the agent will put your application on hold till you submit them. Most states also have a notice period before awarding a license to allow members of the public to voice their opposition to such a business. If any issue arises, the owner shall have to resolve the issue in a court of law for granting a bar and restaurant license.

Conclusion 

Having a bar and restaurant business could be much more profitable than other businesses, for smooth functioning of business you need to obtain a bar and restaurant license. The laws of issuing a license are differing from state to state you need to research well enough before starting a business in your state. You can also consult with an expert from your state for granting a bar and restaurant license. You can reach an expert at bizadvisor.io for obtaining a license.

Read our article:How To Check FSSAI License Number Online

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