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What Licenses Are Required For Opening A Restaurant in India?

Opening a restaurant is not an overnight process. A lot of decisions are to be made in terms of name, location, menu, pricing, target audience, licenses, ambiance, etc. But with the correct helping hand everything can be sorted.

Before we go into details there’s a new government update in the restaurant industry that you should know:

FSSAI (Food safety and standard authority of India) has made it compulsory to mention the FSSAI License/ Registration number on all receipts /invoices /cash memo/ bills etc. by food businesses on sale of food products w.e.f 1/1/2022

This article will help you understand all licenses required in 2021 in order to open your restaurant business in India.

Following are the licenses:

1. FSSAI (Food safety and standard authority of India) License

fssai license

FSSAI License needs to be acquired in order to make sure that your restaurant’s food standards meets the standards set by the food authority of India. It also serves as a certificate of trust for your customers that the food served is safe and consumable.

FSSAI licenses is one of the most important license required in order to run your restaurant business in India. It a 14 digit number allotted to traders, manufacturers and restaurants.

2. Fire Safety License

The purpose of fire safety license is basically to protect your customers from any danger looming due to fire hazards. It is a precautionary process to ensure fire safety in your establishments, so that you can deal with any incendiary crisis effectively.

Therefore, a No Objection Certificate (NOC) is required from the fire department for your restaurant.

3. Liquor License

How to get a liquor license for your restaurant in India

If liquor is served in your restaurant premises then procuring a liquor license is a must. You can acquire a liquor license online from the Department of excise depending on the area of your restaurant.

In case any alcohol is served in your restaurant without the liquor license you can be heavily penalized or your place can be shut down permanently.

4. Health and Trade License

Health and Trade license is required to make sure you adhere to the hygiene concerns laid out by the health department. It makes sure that you achieve the necessary benchmark in the safety and hygiene levels at your particular restaurant. Municipal corporations issues this license and can take up to 60 days to be issued after submission of necessary forms.

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5. Shop and Establishment License

If you have a small food truck or a 7 start fine dining you need to be registered under the shop and establishment act. You can register your business under 30 days from the day of commencement. It is regulated by the Labour Department of individual states. The Act regulates all the shops and commercial establishments operating within the state.

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6. Lift Clearance

If usage of Lift is required at your multi-storied restaurant, you need to get clearance from an inspector from the Electricity Department as well as the Labour Commissioner of the city where your restaurant is located. After verifying the layout, safety gears and installation, the license will be issued by the office of Labour Commissioner. Process of obtaining lift clearance varies from state to state.

7. Eating House License

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An eating house license is an integral part of licenses that you will require to run your food business for outdoor seating. It is required if any kind of drink or food is served for consumption legally. If you’re planning on opening a public eatery then you must apply for this license through Licensing Police Commissioner of the city your restaurant is located.

8. Music Clearance

If you are planning on hosting live events with an artist or any musical event then you need to apply for your Music License. It is regulated by Phonographic Performance Limited (PPL).

In case, you don’t opt for the license and play any kind of music or loud sound you will face charges by the authority.

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9. Environment Clearance Certificate

Every restaurant, no matter its size or locality, must adhere to the environmental regulations. They need to make sure that their operations do not negatively impact the environment.

Therefore, whenever you establish your restaurant make sure to apply for the Certificate of Environmental Clearance.

10. Signage License

If you’re someone who wants to market your business offline then you need to get your signage license. Marketing offline may include using any kind of posters, paintings, signs or graphics etc.

For this license you may reach out to your Municipal Corporation or any local authority.

Based on your restaurant type you may or may not require all these licenses to run your restaurant but its always advisable to be on a safer side and apply for them in case in future you want to expand a few activities.

Let us know what type of restaurant are you planning to set up in the comment section below!

Fatema Rasiwala
Fatema Rasiwala
Content writer at Petpooja


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