TYPES OF REGISTRATIONS REQUIRED FOR STARTING A RESTAURANT IN INDIA?
Are you planning to start a Restaurant in India? Then you have come at the right place. As you know registering a business in India is not an easy path. Let me take you through the process which includes choosing the location, hiring of staff, how to market your business and comply with the legal requirements. Complying with legal requirements means guide through the process and registration requirement. The first and the foremost license required to start a restaurant business in India is FSSAI or commonly called as Food License.
Types of Licenses required:
1) FSSAI License:
This License is basically issued by The Food Safety and Standards Authority of India which is commonly called as Food License or FSSAI License. The primary requirement to start a restaurant business is to get a food license. It is basically a 14-digit registration number that is provided by the FSSAI department to dealers such as manufacturers, traders and restaurants which they are required to mandatorily to be printed on their food packets.
¬ Documents Requirement:
1) Form B duly completed and signed.
2) Photo and address proof of Director/Partner/Proprietor
3) Layout plan of the food processing unit.
4) List of the directors
5) ID proof with contact details
6) List of food category
7) Authority Letter nominated by the manufacturer
8) NOC from municipality
9) Name and number of Equipment as per installed capacity and horsepower for manufacturing and processing unit.
10) Partnership deed
11) MOA and AOA
12) Source of a raw material of meat and meat processing unit. Also source of milk and milk related products as well.
13) For hotel industry certificate provided by the Ministry of Tourism.
14) For pesticide residue report of water for packaging of water
15) Ministry of commerce certificate for 100% EOU(for central license
16) A canceled cheque
¬ Procedure to Obtain the Food License and its Fees Structure?
Once all the documents are gathered you have to apply for Food License through FSSAI website. The process of application is as follows:
1) Creation of User ID
2) Filling of Application
3) Uploading of Documents
4) Final submission with payment of government fees of Rs.2000/- for 1 year (If you want to apply for more than a year then fees will increase accordingly)
5) The submitted application shall be reviewed by the department and if any query is there it will be intimated in 15 days. You have to resolve the query and resubmit the application
6) If verification is done you will receive the certificate with 15 to 20 days.
As the above mentioned process requires guidance from an expert for preparation of documents and filing of the application. Our experts at GK Legal Solutions can help you through the process hassle free.
2) Liquor License:
If a Restaurant serves liquor, then it should have a valid liquor license for serving liquor. The License has to be obtained from Local Excise Commissioner with the application form which are available are the respective state websites. However if you sell in liquor without a valid license you have to incur huge penalty which can lead to shut down of the premises permanently.
¬ Documents required for Liquor License:
1) 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.
2) Whether the restaurant or the hotel is in legal possession of the plot.
3) A certificate that validates the completion of the restaurant or the hotel building
4) Trade License from the Local authority, that is, MCD/NDMC or such other authorities
5) Certificate of registration of Eating house license issued by the DCP.
6) Documentary proof regarding applicant being an Income Tax Assessment and Sales Tax-Assesse.
7) A complete layout plan of the establishment, site plan of the license outlets and the liquor stores
8) NOC from the state Fire Service
¬ Process of getting Liquor License:
Once all the documents are gathered an application has to made to the concerned Excise Officer he will visit the premises or restaurant to inspect and submit his report accordingly. After the required approval is obtained the applicant has to submit the fees as per the guidelines which Rs. 5000/- which is to be paid at the time of submission of the documents. You may also have to pay additional fees of Rs.50000/- for each additional spirits brand like whisky, rum, gin, brandy, vodka etc. As obtaining a liquor license is not a cake walk the government verifies all the details minutely.
3) Trade License:
A Trade License is basically a certificate that gives a permission to commence a particular trade or particular business at a particular location or particular premises. However, the License does not allow the trader or business man to do any trade or business other than the one for which it is allowed. Further it does not grant any type of ownership to the holder of the license.
Trade License is governed by the State government which ensures that no is effected by nuisance or nay health hazard because of any kind of trade or business.
¬ Types of Trade License:
1) Industries license: small, medium and large scale manufacturing factories
2) Shop license: Dangerous and Offensive trades like a sale of firewood, cracker manufacturer, candle manufacturer, barber shop, dhobi shop etc.
3) Food establishment license: Restaurants, hotels, food stall, canteen, the sale of meat & vegetables, bakeries etc.
¬ Documents requirement:
To apply for a trade license, the applicant has to make an application with required documents and submit the same to the concerned Municipal Corporation along with all the necessary documents. There are different types documents that required to be provided depending on the type of business intended to carry on.
1) Application in the prescribed Form
2) If the applicant is any Firm, LLP or a Company, their PAN Card, along with the incorporation certificate.
3) In the case of an individual applicant, his/her Aadhar Card is mandatory.
4) Latest Municipality Property Tax Payment Receipt.
5) Lease documents or consent letter from the owner of the property.
6) NOC from your immediate neighbor
7) A certified layout plan of your trade building showing the business, working or washing or resting areas
8) Katha extracts
9) Katha certificate
10) Sanction plan
11) Occupancy certificate (OC)
After submission of the above mentioned documents to the concerned department it takes around 7 to 10 working days to get the application processed and issuance of the Trade License.
4) Shop & Establishment License:
To run a Restaurant in India you need to be registered under Shop & Establishment Act. The registration is to be taken within 30 days of commencement of business. As the Shop and Establishment is governed by state the fess may vary from state to state. However, the cost basically depends on the number of the employees.
¬ Documents Requirement:
1) PAN / Aadhar Card / Driving License/ Voter Id
2) Photo of Owner
3) Photo of Shop along with Owner ( Just Click with Mobile Phone )
4) Rent Agreement, if Rented
5) Electricity Bill
¬ Process of Application:
1) After gathering all the documents mentioned above the application has to be made mentioning the name of the applicant, name of the Shop with complete address including proof of ownership such as rent agreement or electricity bill.
2) Once the application is submitted paying the appropriate government fees the Chief Inspector shall verify the documents after which he will issue the Registration Certificate. This complete process requires 15 to 20 working days
5) GST Registration:
GST was introduced from 1st July 2017 which has kept everyone involved in frequent changes. Both the restaurant industry and the government has been facing this for long. Even then registering in GST is one of the major things that your restaurants must do, that will ensure that your restaurant runs seamlessly.
¬ Documents Requirement:
1) Copy of Pan Card of Proprietor/Partnership Firm.
2) Copy of the Partnership Deed
3) Copy of Aadhar Card of Proprietor/all partners
4) One passport size-photo of proprietor/all partner.
5) Mail ID and Mobile No. to receive OTP Verification links of all partners
6) Latest Bank Statement containing Name, Address and IFSC Code of Branch of Bank.
7) List of Item to be traded ( if you want to sell stuff over the counter also)
8) List of Item to be traded/manufactured
9) Digital Signatures of authorized partners
10) Authority Letter in favor of dealing partner
11) Allotment and possession letter from Authority / Transfer Memorandum.
12) Copy of Registered lease deed.
¬ Process of GST Registration:
GST Registration is an simple process which can be obtained by individual or partnership or by a company easily by logging in to www.gst.gov.in.
The confusion regarding GST has been faced by the restaurants owners for quite some time for now. With the increasing changes, both the restaurant owners and the diners are living are concerned about further changes that might be introduced.
6) Fire NOC:
The main motive of the customers to the safety of the customers from the dangers, may be it is food or accidents due to fire. In such a case a Fire NOC is required from the department to run a restaurant.
For getting a Fire NOC an application has to be made with the State Fire Department. Mostly these applications are done online. After the complete setup of the restaurant along with the required safety equipment’s in place, you must invite the Chief Inspector for inspection. After inspection the Chief Inspector shall issue the Fire NOC.
7) Music License:
As a restaurant owner you love to play songs in your premises to calm the customers. But to play the musical instruments necessary approval from concerned authority is required. As per the Copyright Act of 1957, those who want to play pre-recorded music in any non-private, commercial or non- commercial establishments must obtain a music license issued by Phonographic Performance Limited(PPL). If a restaurant playing music without obtaining the said license, they will have to face legal consequences.
For more information on getting music license for a restaurant and online registration visit http://www.pplindia.org/licctg.aspx