Business Featured

6 Major Licenses required for Restaurant in India

By Shreya Durgan

It can be exhausting to open and get the licenses required for restaurant.

Your hard work might include selecting a concept, then locating the perfect spot, hiring qualified workers, obtaining licenses, and further marketing the business.

However, getting the restaurant licenses is a cakewalk if you know the appropriate laws and have the right information.

The article will assist you in learning the legal processes and obtaining the licenses required for restaurant of your dream.

Licenses Required for Restaurant

Mandatory for any restaurant

FSSAI license
Shop act
Business registration
Liquor license in case the restaurant serves liquor
Eating house license in case of some states.
Fire safety certificate/NOC

license required for restaurant

Additional licenses that may be required on case to case basis.

License for lift
Health trade license
Environmental license
Music license in case of a loud music facility

Trademark registration online is an easy online process and is also recommended if you want your restaurant name to be secure.

We at StartEazy can help you get the licenses and register your business smoothly. Therefore, you can focus on what you do best and take our help in what we do best.

In India, licenses are a must for a Restaurant.

The most valuable permits to get when opening the restaurant are described here, moreover, it guarantees that the restaurant works legally.

Here are the details for

1. FSSAI Certification

The FSSAI license obtained from the food safety authority of India (FSSAI) is important to start a restaurant.

Above all, it guarantees consumers that the food at that particular eatery meets India's standards of food safety.

Therefore, manufacturers, traders, and restaurants must have a 14-digit listing number. Most importantly, all food packages should have them printed

Documents needed for FSSAI license

Identity and address proof
Email address
Mobile number
Testimony
System of food safety
Kitchen design
Menu
ISI-approved water testing report
Certificate of no objection (NOC) by owners or partners

Steps to register for FSSAI License

You can apply for the licenses required for restaurant with the documents in hand following these steps:

Firstly, visit http://foodlicensing.fssai.gov.in to find if you are eligible for filing.
Secondly, fill the form of the criteria you've chosen, then activate your account.
Thirdly, sign in and fill the appeal form. Meanwhile, check the documents wanted for the criteria you've chosen.
After that, submit the application and print a copy. After that, with the reference number, you can track the status of the application.

Following the letter of the appeal, the authorities review it and conduct an examination.

If the inspection is done successfully, they forward the report to the relevant authority, and the license required for restaurant is issued.

However, this process could take up to 60 days.

FSSAI License Cost

The fee of FSSAI for the application process differs depending on the category.

FSSAI Registration – Rs. 100/- per annum
FSSAI State License – Rs. 2000/- to rs. 5000/- per annum
FSSAI Central License – Rs. 7500/- per annum

If you are hiring a professional to apply on your behalf, you are charged an additional professional fee.

2. Shop and Establishment Act

The department of labour regulates the shop and establishment act, governing the space where any trade or business happens.

The shop and establishment act rules many areas, including:

Working hours
Rest intervals
Children's employment is banned.
Employing a young person or a woman
Hours of operation and closure
Days of closure
Weekly vacations
Pay for vacations
Wage payment terms and conditions
Payroll deductions
Policy on leave
Dismissal
Cleanliness
Ventilation and lighting
Fire safety precautions
Accidents
Keeping records

3. Business Registration

You need to register your business. You can register it in the following ways :

Company registration
Sole proprietorship registration
Partnership in case there are partners

The tax on goods and services (GST) is imposed in India.

Therefore, 18% GST levies on the restaurant, room service and takeaway added, given by restaurants placed inside hotels with room rates exceeding Rs. 7,500.

But, unlike previous taxes (vat, service tax), this is a single tax. Above all, you can enrol online for GST and have it approved quickly.

GST Rates for Restaurants:

The GST is 5% for restaurants, whether ac/non-ac.
GST is 18% for catering outdoor restaurants.
Restaurants having more than 1 Cr. Annual turnover or falls under 5% GST slab are not eligible for input tax credit (ITC).
If you serve alcohol in the restaurant, GST is not levied on it. However, vat and other state taxes are charged from the customer.

4. Liquor Permit

Most importantly, if the restaurant serves alcohol, obtain a liquor license.

You can get it from the local commissioner of excise, and the websites have the form of the particular state governments.

However, you face a large fine or made to close down the restaurant without the license.

Liquor License Fee

Rs. 13,000 is the normal cost of the alcohol permit. However, to a restaurant, it is Rs.1,50,000. A mandatory fee of Rs.5,000 is charged when you submit the document and Rs.50,000 per added drinks brand.

Steps to get a restaurant liquor license

Firstly, fill the form from the website of your state government.
Secondly, the documents are submitted to the inspecting officer.
After that, he submits a report to the authority of issuing liquor licenses.
Following approval, the applicant submits the fees, and the license is issued.

However, it is difficult to get a liquor license because the government examines the details carefully.

5. Eating house license required for restaurant

The local police commissioner of licensing issues the eating house permit.

Eating house license fee

The minimum fee for license issuance is Rs. 300/- per three years.

Steps to obtain an eating house license

First, the candidate creates an account on this site.
After that, with the user id, fills the form, uploads all asked certificates and schedule a discussion. Moreover, the self-attestation of documents ensures validation.