Essential Licences Every Indian Restaurant Must Secure For Smooth Operation
Securing licences is crucial for the smooth operation and legality of your restaurant business
In the realm of running a business in India, adherence to legal protocols such as obtaining licences and fulfilling tax obligations is paramount. Though the paperwork may seem daunting, securing these licences is crucial for the smooth operation and legality of your enterprise. Here are some of the licenses and NOCs that you need before starting a restaurant business in India.
FSSAI Licence
First and foremost, for any restaurant business, including dark kitchens, obtaining a Food Safety and Standards Authority of India (FSSAI) licence is imperative. This licence signifies compliance with the government's food safety standards and is available in three categories:
FSSAI Registration: Tailored for very small food businesses with an annual turnover of less than Rs 12 lakh.
State Registration: Applicable for small to midsize restaurants with an annual turnover ranging between Rs 12 lakh and Rs 20 crore.
Central Licence: Designed for large restaurants and food chains generating an annual turnover exceeding Rs 20 crore.
Application for these licences can be facilitated through the FoSCoS portal, accompanied by Form A or Form B and requisite self-attested documents.
Health/Trade Licence
Procuring a health/trade licence from local municipal authorities or the health department is vital. Costs typically range from Rs 500 to Rs 50,000, contingent upon state regulations and other factors. Failure to obtain or renew this licence annually within a maximum waiting period of 60 days post form submission may result in municipal corporations shutting down establishments.
Eating House Licence
Under Indian law, any establishment offering food and beverages for public consumption is deemed an eating house. Thus, all sizes of restaurant businesses necessitate an eating house license. Obtaining this license involves registration on the state police's official website, document submission, and verification by the Additional Commissioner of Police.
Fire Department NOC
Securing a No Objection Certificate (NOC) from the fire department is mandatory for all food businesses to ensure compliance with fire safety regulations. This certificate incurs no cost and entails registration on the state fire department website, document submission, and inspection for fire safety measures.
GST Registration
In accordance with the Government of India's regulations, businesses, including restaurants with a turnover exceeding Rs 20 lakhs, must obtain Goods and Services Tax (GST) registration. This can be effortlessly completed online, typically sanctioned within 5-7 days with minimal paperwork.
Additional Licences
Depending on the nature of your business, additional licenses such as liquor licences, lift clearance, and music licences may be required.
Ensuring compliance with these essential licences not only fosters the legality of your restaurant business but also contributes to its smooth and uninterrupted operation within the regulatory framework.
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