Start a Restaurant in India

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Necessary licenses to start a Restaurant in India

FSSAI (Food Safety and Standards Authority) License

The FSSAI license, which is also known as the Food License is one of the mandatory licenses necessary to open a restaurant and is acquired from the FSSAI (Food Safety and Standard Authority of India). FSSAI license mainly serves as the approval of the authority to the restaurant which ensures the customers that the food of the restaurant confirms the food safety standards. FSSAI license is basically a unique 14 digit registration number which is given to restaurants, manufacturers and traders which should be printed on the food packages. This affirms the customers that they are eating at the right place which followed all the safety food standards.

Documents Required For The FSSAI License

Here we have mentioned below the list of documents that are needed to apply 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 Category
  • Water Testing Report from ISI approved Facility
  • No Objection Certificate (NOC) from the owner or the partner
  • Medical Certificates of Employees

Liquor License

Liquor license must be obtained if your restaurant serves liquor. This license can be acquired from the local excise commissioner or through the forms which are available in the government websites of that particular state. Possessing this liquor license is very important. If it is found out that you are selling the liquor without this license you will incur the huge penalty. In some cases, your business is shut down permanently.

Documents Required For The Liquor License

  • Documentary proof regarding the legal status of the restaurant or the hotel, that is, whether it is a company, partnership firm or any other type of setup.
  • 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, that is, MCD/NDMC  or such other authorities
  • Certificate of registration of Eating house license issued by the DCP.
  • Documentary proof regarding applicant being an Income Tax Assessment and Sales Tax-Assesse.
  • A complete layout plan of the establishment, site plan of the license outlets and the liquor stores
  • NOC from the state Fire Service

Health/Trade License

Health Trade License is created from the concern that public health must be given the utmost importance. This license can be obtained from the local civil authorities like the Municipal Corporation of the particular state or the Health Department.

Documents Required For The Health/Trade License

  • Sanction and Completion (Includes 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 paid Bill
  • Sewer Connection Proof
  • Letter from Delhi police is also required for swimming pools, cinema halls, and hotels
  • Water Testing Reports
  • Plan of the Premises
  • Medical Certificates of Employees
  • Proof of Property Tax
  • Lal Dora Certificate, if applicable
  • Medical Fitness Certificate of Workers

Eating House License

The Eating House License is given by the Licensing Police Commissioner of that particular city where you are opening the restaurant. The estimated cost to get this license is Rs.300 for the span of three years.

Documents Required For The Eating House License

  • 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.
  • 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
  • Undertaken with regard to amusement activities
  • Undertaking regarding the installations of CCTV Cameras with 30 days recording facility

Shop and Establishment Act

To run a restaurant in India you must first register it under the Shops and Establishment Act. The restaurant should be registered within the 30 days of its commencement. This license is based on which city you are operating the restaurant.

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

GST Registration

GST which came into force from July 1st, 2017, has kept everyone hooked to it with its frequent changes. Both the restaurant business and the government have been in trouble for long. Even then registering in GST is one of the main things that your restaurant must do, which will ensure running of your restaurant seamlessly.

Documents Required For The GST Registration Of Your Restaurant

For The Proof Of Ownership/Tenancy Rights Of The Business Premises:

  • Allotment and possession letter from Authority / Transfer Memorandum.
  • Copy of Registered lease deed.

Or,

For Rent Agreement And Electricity Bill Of The Owner Of The Property:

  • Copy of Pan Card of Proprietor/Partnership Firm.
  • Copy of the Partnership Deed
  • Copy of Aadhar Card of Proprietor/all partners
  • One passport size-photo of proprietor/all partner.
  • Mail ID and Mobile No. to receive OTP & Verification links of all partners
  • Latest Bank Statement containing Name, Address and IFSC Code of Branch of Bank.
  • List of Item to be traded ( if you want to sell stuff over the counter also)
  • List of Item to be traded/manufactured
  • Digital Signatures of authorized partners
  • Authority Letter in favor of dealing partner

Fire Department

The restaurant’s main motive must be to guard their customers against all things which are injurious, be it food products or dangers such as fire. A No Objection Certificate (NOC) from the fire department of the particular state is a must to run a restaurant.

Lift Clearance

If a lift is installed in your restaurant you need to get permission from the inspector of the electricity department and the labor commissioner of that particular city. This license is given by the Electrical Inspector from the labor commissioner office after verifying the installation of the lift, layout, safety gears etc.

Music License

If your restaurant is playing music then you should obtain a music license from the Phonographic Performance Limited (PPL). If it is found that your restaurant is playing the music without obtaining a proper license then you will face huge penalties.

Certificate of Environmental Clearance

The restaurant is not only responsible for the health of the customers, but also legally and morally responsible to make sure that its operations are not harming the nature. Therefore, restaurants are required to obtain the Certificate of Environmental Clearance.

Signage License

You need marketing strategies for your product to make sure that your business will gain huge profits. However, if you want to make use of marketing strategies for your restaurant either through word of mouth, pictures, logos, symbols, posters etc. you are required to acquire a legal permission which is the signage license. You can acquire this license from local civil authorities like the Municipal corporations of that particular city.

These are the important licenses which will legally permit you to carry on with your restaurant business in India without getting involved in any kind of legal troubles.

Restaurants are one of the best startup ideas that you can ever think of. However, running an eatery can be equally difficult as it is directly related to the health and safety of consumers. If you manage to fulfill the legal requirements, then your business will strengthen its position and also you will stay away from all penal actions.

FAQ

On August 23, 2006 all the food safety related acts came under one Food Safety and Standards Authority of India(FSSAI) which has the supreme authority related to the food like manufacturing, processing, packing, transportation and its distribution. It has become mandatory to possess a food license for everyone who are in the chain which requires the food handling at any stage. License or registration with FSSAI is necessary for everyone who is doing a food business. Whether a FBO requires a License or registration depends upon the factors like capacity of production, handling nature of food business activities and area of operation.

FSSAI has to do the following things:
(i) laying down science based standards for articles of food
(ii) to regulate manufacture, storage, distribution, sale and import of food
(iii) to facilitate food safety.

There are three different types of FSSAI registration, the required time for FSSAI license registration differs.
1. The basic FSSAI license will be delivered in 7 working days.
2. State license and Central license will be provided in 30 days.

FSSAI registration is mandatory for every food business in India. You can contact our experts on 9313454647 and get to know your license related details by them.

There is different threshold limit for the different kind of food processing units. 

Obtaining FSSAI license is obligatory for all food business operators whose Annual turnover exceeds ₹12 lakh and Production capacity is more than 100kg per day. Based on the type of profession, businesses are required to issue FSSAI license from Union or State Government.

The validity of FSSAI Registration/License is varied from 1-5 years. Accordingly, the person needs to apply for FSSAI Renewal.

Those processing between 500 l to 50,000 l/day milk require FSSAI State license. Those processing above 50,000 l or 2500 MT/day milk requires a Central FSSAI license.

Those processing up to 500 kg or 150 MT meats every day require FSSAI State license, while those processing more than that require Central FSSAI license.

Those having Turnover up to ₹20 Crores require FSSAI State license, while those with Turnover above ₹20 Crores require Central license.

You require only a State FSSAI license in case you are running a Dhaba, mess or a Canteen and you have a turnover above 12 lakhs.

On successful registration under FSSAI, you will receive a digital copy of certificate which is equivalent to the hard copy. Thus, you do not require a separate hard copy of FSSAI certificate. This digital copy will be updated as and when you apply for FSSAI Renewal.

FSSAI Registration is required when your annual turnover does not exceed INR 12 Lacs otherwise FSSAI License is required. Both FSSAI registration and FSSAI license can be updated through application for FSSAI Renewal.

Yes, you would require a separate license for each kind of products you are dealing in.

The taxes you pay on input goods/services can be used as an Input Tax Credit (ITC) against output tax liabilities.

The priorities of the FSSAI is laying down science based standards for articles of food and to regulate their manufacture, storage, distribution, sale and import, to ensure availability of safe and wholesome food for human Consumption. Its main motive was to maintain the a particular standard of the food quality and to curb the adulteration and substandard quality of food.

Yes, you can mention FSSAI registration number on food the product packets after registration.

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