The Complete Guide to Licensing Process for Starting a Restaurant 

Are you ready with your restaurant business plan? You might have thought extensively about the menu, decor, themes, funding, and management. However, one crucial aspect to consider before initiating is the licenses you need to operate your restaurant. 

After all, you won’t want to get entangled in a legal tussle when you have spent so much time and resources establishing your restaurant business.  

Wondering how to get the licenses for a restaurant? We have you covered.  

In this blog, we will take you through every license and certification you need to run a restaurant business successfully in India. 

Licenses You Will Need to Start Your Restaurant 

FSSAI Food Safety and Standards Authority License 

The FASSAI or Food safety license reflects the authority’s approval of your food quality and safety. As such, this license is crucial to gaining your customers’ confidence. 

You can apply for the license on the official FASSAI website. It will cost you around Rs.2000/year for a State License and Rs.7500/year for a Central License. 

Eating House License 

Getting an Eating house license is compulsory to open a public eatery where food and beverages will be served. 

You must fill out the application form downloaded from the city or state licensing policing commissioner’s website. Then, you must meet the Additional Commissioner of Police of your state for verification. Once the documents are approved, you will get the license for just Rs.300 in two months. 

Health/Trade License 

You must secure a Health Trade License issued by a municipal corporation. It is a permit to start a business dealing in goods and services that directly impact public health. 

The application form and details are on the State’s Municipal Corporation website. The cost of acquiring this license will vary based on your restaurant’s location. 

GST Registration 

Acquiring a GST number is mandatory to start any business in India, and the restaurant business is no different. Additionally, if you have multiple outlets nationwide, you must have separate GST registration for each state. 

You will need to fill in Form GST REG – 01 to apply. The good part is it does not entail any registration fee. 

Fire Department License 

Customer and worker safety is foremost in the restaurant industry. That is why you must procure all safety equipment to be eligible to tackle fire hazards. 

You can then apply for an NOC from the fire department, which you will get after verification from the department’s chief. 

Environmental Clearance 

Your restaurant is expected to cause no environmental damage as a food business.  So, you will need ecological clearance from the Ministry of Environment and Forests. 

After filling out the environmental appraisal form, you will get clearance from the appraisal committee if eligible. The clearance fee will differ according to restaurant type. 

Insurance for Your Restaurant 

As a restaurant owner, you must ensure your establishment against  

• Public Liability 
• Product Liability 
• Fire Policy 
• Building & Asset 

You can acquire restaurant insurance from any registered organisation. 

Shop and Establishment Act 

This license comes under the Shop and Establishment Act, which controls the staff’s working hours, payments, and work conditions. Getting this license is mandatory to run a business in any Indian state. 

To register under this act, you will need approval from the Chief Inspector of Shops and Establishment Act assigned in your restaurant’s location. 

You can apply through the Labour Commission’s website. The registration cost will vary according to your employee strength. 

Additionally, you will need: 

• Music license for playing music at your restaurant 
• Lift clearance for lift installation 

• Liquor license to serve alcohol to customers 
• Signage license for advertising 

Wrapping Up 

These are the licenses you will need to open a restaurant.  

The number of licenses you need might seem overwhelming but do not get intimidated by the number, as the processes for accruing each are pretty simple. You will get all the licenses quickly if you have all the required documents. 

You can run a healthy restaurant business with all the clearance in hand. To simplify your operations, acquire an efficient Restaurant POS Machine like QPOS. Connect with the team today!