Registration & Licenses

What You Should Know Before Starting A Restaurant Business

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Food industry in India is expanding fast. With affordability, eating out has become a part of the millennials’ culture. This has led to many people entering the food restaurant business. In fact, in cities like Bangalore and Hyderabad, many small cafes operated from homes, have also come into existence. However, opening of a restaurant business is not an easy task. There are a number of regulatory requirements involved. We will explain to you, what you should know before you decide to become a restaurant owner. 



Regulatory Requirements of a Restaurant Business


FSSAI (Food Safety and Standard Authority of India) License

This license is also known as the Food License. It is issued by the Food Safety and Standard Authority of India and is a guarantee of the fact that the food served by the respective restaurant is safe to eat. A 14-digit number is given at the time of registration. A restaurant certified by FSSAI is an assurance to the customers that the food provided is according to the safety standards set by FSSAI. A list of documents such as ID Proof, Kitchen Layout Plan, NOC of the owner and many others must be submitted in addition to filling an online form on the FSSAI website. Thereafter one must submit the required documents and the application form and then make a payment of INR 2000 to the Regional/State Authority. 


Liquor License 

The restaurants who wish to serve liquor as well in their restaurant must mandatorily obtain a Liquor license from the Local Excise Commissioner. A list of documents is required to obtain a liquor license of which the most important is obtaining a NOC from the State Fire Service department.  However, getting a liquor license is not that easy, after the verification of the documents, a fee of INR 5,000 must be paid.  An additional INR 50,000 must be paid for each additional brand like whiskey, rum, gin, brandy, vodka, etc. 


Signage License 

Marketing is essential for any business. Good marketing skills help a person to give fame to his business, but in order to market your restaurant, one must obtain a license. Yes, even for marketing your restaurant you must receive a license. This is known as the Signage License.  In order to market your restaurant through person, logos, symbols or posters one must obtain a legal permit. 


Certificate of Environment Clearance 

The restaurant is obliged to take care of the environment as well. It must take adequate measures to ensure that it does not harm the environment in any form. In order to ensure that the restaurant is environmentally compliant, it must obtain a Certificate of Environmental Clearance. In order to obtain this license, one must submit certain documents with the application form to the concerned authorities. 


Music License 

In order to play music in a restaurant, a specific license is required. As per the Copyright Act, 1957, those who play pre-recorded music in any non-private, commercial or non- commercial establishments must have a Music license as issued by the Phonographic Performance Limited (PPL).


Fire Safety License 

The safety of customers must be the top priority of the restaurant. The restaurant should be designed in such a manner so as to protect the customers from hazards such as fire. Thus, a restaurant must necessarily be fire safety compliant and must obtain a NOC from the fire department. Unlike other licenses, this license must be obtained before the construction of a restaurant starts.   


Shop and Establishment License 

This license is required to open a fine dining restaurant or a food truck. As per the Shop and Establishment Act, any person who commences this business must apply for this license within 30 days of starting it. The cost incurred on obtaining this license depends on various factors such as number of employees, location of the restaurant and many more. 




Though the regulatory requirements behind opening a restaurant are slightly complicated, they can be made easier by seeking legal help. Seeking legal help will not only make your job easier of getting all the necessary licenses but also will ensure the smooth functioning of the business without any legal hindrances.

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