Licenses Required To Start A Catering fascility In India

Assignment No. 1

Licenses Required To Start A Catering fascility In India

Here we have listed the most critical restaurant licenses required to open a restaurant in India, obtaining which will ensure that your restaurant operates legitimately.

1. FSSAI Food Safety and Standards Authority License

The FSSAI license, also known as the Food License is one of the most important licenses required to open a restaurant and is obtained from the FSSAI (Food Safety and Standard Authority Of India). This license is not merely a license, on the contrary, it also serves as an approval by the authority and ensures the customers that the food of that particular restaurant affirms to the food safety standards of India. This license is necessarily a unique 14 digit registration number that is given to manufactures, traders, and restaurants which should mandatorily be printed on food packages. This confirms your consumers that they are dining at the right place which adhered to all the safety standards.

Documents Required for the FSSAI License

Here we have mentioned below the list of documents that are needed to apply for the FSSAI License.

• Id Proof and Address Proof
• Valid Email Id
• Phone Number
• Affidavit
• Declaration Of Food Safety Management Plan
• Kitchen Layout Plan
• List Of Food Category
• Water Testing Report from ISI approved Facility
• No Objection Certificate (NOC) from the owner or the partner
• Medical Certificates of Employees

How to Obtain the FSSAI License for Your Restaurant

Once you have these documents in place, you can apply for the license which would approximately cost you around Rs.2000 per year for a new license. The application process is rather simple, and you can log in to the FSSAI website, complete the sign-up process by creating a username for the registration. Then sign in to your account and fill up the online application with all the required documents. Submit the printout of the filled up online application form to the Regional/State Authority with all the supportive documents within 15 days from the date of making the online submission, to ensure that your application is considered. 

2. Liquor License

If your restaurant serves liquor, then procuring the Liquor License is a must. This can be obtained from the Local Excise Commissioner, and the forms are available at the respective State Government websites. Having this license is exceptionally crucial since if you sell liquor without the above-said license, you can incur a huge penalty and also be forced to shut down the premises permanently.

Documents Required for the Liquor License

Here’s the list of documents required for getting the Liquor License for a restaurant and bar.

• 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.
• Whether the restaurant or the hotel is in legal possession of the plot.
• A certificate that validates the completion of the restaurant or the hotel building
• Trade License from the Local authority, that is, MCD/NDMC  or such other authorities
• Certificate of registration of Eating house license issued by the DCP.
• Documentary proof regarding applicant being an Income Tax Assessment and Sales Tax-Assesse.
• A complete layout plan of the establishment, site plan of the license outlets and the liquor stores
• NOC from the state Fire Service

How to Obtain the Liquor License for Your Restaurant & Bar

Once the documents are served the concerned Excise Officer inspects the restaurant or the hotel premises, and he then submits a report to the liquor granting authority.  After the approval, the applicant has to submit the fees as per the guidelines and then the license is issued. The fee guideline goes like this: you will have to pay Rs, 5,000 at the time submission of the documents and an additional Rs 50,000 is required for each additional spirits brand, like whiskey, rum, gin, brandy, vodka and the like. It is a known fact that obtaining a liquor license for your restaurant is by far the most difficult one since the government verifies all the details with an eagle’s eye.

3. Health/Trade License

The 11the schedule of the Municipal Corporation Act (1957) is about Health Trade License. It came into existence from the concern that public health must be given the supreme importance. This license is generated by the local civil authorities like the State’s Municipal Corporation or the Health Department.

Documents Required for the Health/Trade License

Here is the list of documents required to get the Health/Trader License for your restaurant.

• Sanction and Completion (Includes Ownership proof, Rent Agreement or NOC from landlord)
• Three copies of the site plan and layout
• Indemnity bond for Rs.100
• Structural Stability Certificate signed by Structural Engineer
• Power and Water paid Bill
• Sewer Connection Proof
• Letter from Delhi police is also required for swimming pools, cinema halls, and hotels
• Water Testing Reports
• Plan of the Premises
• Medical Certificates of Employees
• Proof of Property Tax
• Lal Dora Certificate, if applicable
• Medical Fitness Certificate of Workers

How to Obtain the Health/Trade License for Your Restaurant

The applying process of obtaining the Health/Trade License for restaurants is rather easy, and it will cost you approximately around Rs.500-Rs.50,000. A restaurateur can apply for Health/Trade License either at CSB or apply online for it. The forms are available at the State’s Municipal Corporation website or Zonal Citizen’s Service Bureaus.  The license is generally issued within 60 days of submitting the application form. Municipal Corporations hold power to shut down restaurants which do not have this license. 

4. Eating House License

The Eating House License is provided by the Licensing Police Commissioner of that city where you would want to open the outlet. The approximate cost required to issue this license is Rs. 300 for three years.

Documents Required for the Eating House License

Here’s a list of documents that are needed to get the Eating House License for restaurants.

• Documents to prove the legal occupancy of the place of Eating House and in the case of tenancy, NOC from the landlord
• Site Plan containing details of the size of Eating House
• Photographs of the place showing its usage as an Eating House
• Photocopy of Valid NDMC/MCD/DCB/Airport Authority of India trade license and free receipt.
• Residence proof of the applicant
• An affidavit on the stamp paper of Rs 10 duly attested by Notary Public
• Fire NOC, if the seating capacity of the eating house is 50 or more
• Undertaken with regard to amusement activities
• Undertaking regarding the installations of CCTV Cameras with 30 days recording facility

How to Obtain the Eating House License

The applicant will have to first register himself or herself on the specific website. After you are successfully registered, you will receive a User ID and Password for submission of forms. Using the user ID, you can fill up the form, upload all the necessary documents and fix an appointment. Self-attestation of all the documents you place is a must since it will ensure validation. 

5. Music License

Don’t you as a restaurant owner love to play the trending songs at your restaurant? It is not only you, but the customers love it too. But, to play music at your restaurant, you need to obtain a restaurant music license. Under the Copyright Act of 1957, those who 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 plays music and operates without the said license, they will have to face legal penalties. 

6. GST Registration

GST that came into force since 1st of July, 2017, has kept everyone hitched to it with this frequent changes. Both the restaurant industry and the government has been in loggerhead 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 Required for the GST Registration of Your Restaurant

Below is the list of documents required to get the GST registration needed for your restaurant.

For the proof of Ownership/Tenancy rights of the business premises:

• Allotment and possession letter from Authority / Transfer Memorandum.
• Copy of Registered lease deed.

Or,

For Rent Agreement and Electricity Bill of the owner of property:

• Copy of Pan Card of Proprietor/Partnership Firm.
• Copy of the Partnership Deed
• Copy of Aadhar Card of Proprietor/all partners
• One passport size-photo of proprietor/all partner.
• Mail ID and Mobile No. to receive OTP & Verification links of all partners
• Latest Bank Statement containing Name, Address and IFSC Code of Branch of Bank.
• List of Item to be traded ( if you want to sell stuff over the counter also)
• List of Item to be traded/manufactured
• Digital Signatures of authorized partners
• Authority Letter in favor of dealing partner

How to Get the GST Registration of Your Restaurant

Yes if you are thinking to take a big bite or leap of faith, it is easier to start your billing and business now because GST registration is a simple process wherein Individual, Partnership firm or Registered Company can obtain by filing necessary documents online at www.gst.gov.in.
The confusion regarding GST has been going around for quite some time now. With the increasing changes, both the restaurant owners and the diners are living in this constant apprehension of further changes that might be incorporated. However, several channels are trying to make things easier for the restaurant owner, GSTStreet is one such platform.

6. Fire Department

The restaurant’s ulterior motive must be to protect their customers from all things dangerous, be it food products or hazards such as fire. A No Objection Certificate(NOC) from the fire department is also required to run a restaurant.

How to Get a No Objection Certificate from the Fire Department

For this, a restaurant needs to register for NOC from the State Fire Department before the building construction starts. Applications can be found online on the state government website. After having all the safety equipment in place, you must invite the Chief Fire Officer for inspection and get the NOC. There is no fee required for NOC as of now