Starting a restaurant in India

The restaurant industry is one of the fastest expanding industry verticals in the recent times, due to multiple reasons, can also choose to skip the entire preparation aspect of the meal itself. They can get take-out from their favorite local restaurant or grocery store and eat it at home or they can choose to have the entire meal outside the house and eat at a restaurant.

Choosing from these different options is something that everyone does, not only at dinner time, but also at breakfast and lunch. The food environment has so many options that it is common for people to eat at least one meal out every day.

More and more people are making the choice to eat outside their home rather than being involved in the food preparation process.

Starting a restaurant is an extremely profitable business idea- if done right- but a thorough investigation is to be done into the legal requirements and procedures to be completed, before it commences into business.

If you intend to set up your own restaurant, then the following article guides you through the licenses and permits you will require to get your restaurant to be deemed as a legitimate business.

Also Read: License Required to open a Cafe in Delhi

Food License for Starting a Restaurant

It is one of the primary requirements to obtain a license under FSS (Licensing & Registration of Food Businesses) Regulations 2011.

• Every restaurant owner has to first register their business with FSSAI.
• No person shall commence or carry on any food business- except under a license with an exception of a tiny food business operator, but they shall register themselves with food authority.
• Carrying business without a license will be treated as a legal offense thus, making the restaurant liable to pay penalties.

FSSAI license is basically a 14- Digit registration number which is printed on food packages. Based on Annual Turnover, a Food Business Operator (FBO) has to either apply for simple registration in FORM A with FSSAI or apply for a License given by FSSAI in FORM B.

The Documents Required For FORM A Are :

• Passport size photograph of Food Business operator.
• Document for Identity Proof like- Passport, Aadhar Card ,Senior Citizen Card Ration Card, Voter ID Card, PAN Card, Driving License, Department Issued ID.
• Supporting Documents (if any):- NOC by Municipality/Panchayat, Health NOC.

Documents Required For FORM B Are :

• Form B must be appropriately completed and signed- (in duplicate)- by the proprietor or partner of the authorized signatory. It is mandatory for all.

• It is mandatory for manufacturing and processing units to provide a blueprint plan of the processing units which shows the dimensions in meters or squares and operation wise area allocation- along with name list of the Equipments and Machinery with their number, installed capacity and horse power used.

• It is mandatory for companies to furnish the list of Partners/Proprietor/Executive Members of Society with complete address and contact details.

• Address proof and Photo ID issued by Government authority.

• Analysis report (Chemical & Bacteriological) of water to be used as ingredient in food from a recognized/ public health laboratory to confirm the potability- (mandatory only for manufacturing and processing units).

• Proof of possession of premises- (Sale deed/ Rent agreement/ Electricity bill, etc.) (optional).

• Partnership Deed/Affidavit of Proprietorship/Memorandum & Articles of Association towards the constitution of the firm. (optional) – For MoA – Three pages need to be uploaded (First page – Certification of incorporation, Second page – Authorization of food business activity and Third page – list of directors with addresses).

• Copy of certificate obtained under Co-Op Act – 1861/Multi State Co-Op Act – 2002, in case of Co-operatives- (wherever applicable).

• NOC & Copy of License from manufacturer- (mandatory for re-labels and re-packers only).

• Food Safety Management System plan or certificate (if any).

• Source of milk or procurement plan for milk- including location of milk collection centre’s etc. in case of Milk and Milk Products processing units(wherever applicable).

• Source of raw material for meat and meat processing plants. (wherever applicable)

• Pesticide residues report of water in case of units manufacturing packaged drinking water, packaged Mineral water and/or carbonated water from a recognized/ public health laboratory.

• Recall plan wherever applicable- with details on whom the product is distributed. (optional)

• NOCs from Municipality or local body (optional).

• Form IX: Nomination of Persons by a Company along with the Board Resolution.

• For Transporters-Supporting documentary proof for Turnover or self declaration of number of vehicles.

• Upload Production unit photograph and
• Declaration form.

Documents For FORM C Are:

• List of Directors with full address and contact details (mandatory for companies only).

• Photo ID and address proof issued by Government authority of Proprietor/Partner/Director(s)/Authorized Signatory. (optional)

• Authority letter with name and address of responsible person nominated by the manufacturer along with alternative responsible person indicating the powers vested with them viz assisting the officers in inspections, collection of samples, packing & dispatch.

• Proof of possession of premises. (Sale deed/ Rent agreement/ Electricity bill, etc.) (optional).

• Partnership Deed/Affidavit/Memorandum & Articles of Association towards the constitution of the firm. (Optional).

• Copy of certificate obtained under Co-Op Act – 1861/Multi State Co-Op Act – 2002 in case of Co-Operatives. (Wherever applicable).

• Food Safety Management System plan or certificate (if any).

• Source of milk or procurement plan for milk including location of milk collection centre’s etc. in case of Milk and Milk Products processing units.(wherever applicable).

• Source of raw material for meat and meat processing plants. (wherever applicable).

• Pesticide residues report of water in case of units manufacturing packaged drinking water, packaged Mineral water and/or carbonated water from a recognized/ public health laboratory.

• Recall plan wherever applicable, with details on whom the product is distributed. (Optional).

• NOCs from Municipality or local body. (optional).

• Supporting document proof for turnover.

• NOC/PA document issued by FSSAI.

• IE Code document issued by DGFT.

• Form IX Nomination of persons by a company along with the board resolution.

• Declaration form.

Health Trade License For Restaurant

The restaurant owner has to obtain a health/trade license which is issued by the municipal corporation or the health department of the concerned state.

License For Eating House

The restaurant owner has to apply for the Eating House License under the city/state police headquarters and the police commissioner – Licensing- that’s is authorized to grant this license.

In most of the cities the applicant can apply online for grant of the registration certificate.

Fire Security Certificate

The restaurant premises should have proper fire security arrangements. One has to acquire NOC from the fire department for this. Once you apply, the inspection would be carried out and the decision will be taken by the officials of the Fire Department for the grant of the NOC.

Liquor/Bar License

The Liquor license L-4 (L-17 as per new excise rule) is required if Liquor is served in the restaurant. The Liquor license can be obtained from the Excise Commissioner of the city/region of the state.

Approval/Re-Approval Of A Restaurant

If restaurants are looking to acquire L-4 license then they have to take prior approval from the department of Tourism of the Govt. of India in the concerned state.

Lift Clearance

The restaurants with multi story building premises shall have to get clearance from the electrical inspector of the office of the labor commissioner- to ensure that the lift operations comply with the safety norms.

License For Playing Music/Video

If recorded music or video is to be played in the premises then one has to obtain a license in compliance to the Copyright Act of 1957 and the license can be obtained from Phonographic Performance Limited or Indian performing Right Society.

Environmental Clearance

 A NOC from the pollution board of the city/state is required by the restaurants for ensuring that their activities are not violating pollution norms.

Restaurant Insurance Required

The restaurants have to take insurance for public liability, Product liability, fire policy & for building & Asset. Insurance policies can be obtained from any insurance company providing such insurances.

Signage License

Restaurants can obtain this license from the local civic bodies like Municipal Committee or City Corporation.

Shop & Establishment Act

Restaurants have to obtain license under the prescribed Act as applicable to the concerned state.

• Online registration of a shop/establishment in Delhi

Approval From The Weights & Measures Department

As per the Legal Metrology Act, 2009, you have to go for the Approval of models of weighing & measuring instruments from the Weights & Measures Department.

It is the duty of the owner of the restaurant to ensure that all the requisites like obtaining licenses and their timely renewal.

This’s all about Restaurant Licensing And Registration Policy for now. Did you find this post useful? Let us know in the comments section. Don’t forget to Share!