Friday, October 11, 2013

Licenses Required for Opening a Restaurant in India

The Restaurant is amongst the fastest expanding industries in India. According to a current Food Services Report 2013 by National Restaurant Organization of India (NRAI), market size of India's restaurant sector is Rs.247,680 crore ($48 billion). This sector is 24 times bigger than the film market and $9 billion ahead of the telecom sector. And, it is forecasted to puffiness to Rs.408,040 crore ($78 billion) by 2018 at a compounded yearly growth rate (CAGR) of 11 per cent.

This fledgling market is presenting a great deal of opportunities to business owners who are willing to establish their own restaurant or chain of restaurants in some part of the nation. It goes without saying that scrumptious food, picturesque place and good service are the lifelines of a restaurant; nevertheless those are not nearly enough. Recently, a national court had actually gotten 34 restaurants in Delhi's Hauz Khas Town to be closed since they are operating unlawfully without needed pollution permits. These joints breached the laws mandating that restaurants should treat their waste water before it strikes the drains, according to the National Eco-friendly Tribunal, a government justice system which policies on breaches of ecological law.
It is vital for restaurateurs to obtain some essential licenses before starting a new restaurant. In this article, we have gotten different kinds of licenses provided by numerous bodies that are mandatory as per NRAI standards.

1. Food Safety License- Provided by Food Security and Standards Authority of India (FSSAI).
2. Health Trade License- Issued by Municipal Corporation / Health Division of the concerned state.
3. Eating House License- Obtained from Licensing Police Commissioner of that city.
4. Environmental Clearance- Provided by the concerned authority in the state. For Delhi it is Pollution Control Committee (DPCC).
5. NOC from Fire Department- Acquired from Fire Department of the worried state.
6. Signage License- Municipal Committee/Corporation of the worried city.

License compulsory for service of Alcohol in the restaurant:.
7. Liquor License L-4(L-17 as per new Excise Rule)- Issued by regional Excise Commissioner.

License mandatory for playing recorded / live songs in the restaurant:.
8. Playing of Music in dining establishments-- Can be gotten from Phonographic Performance Limited (PPL)/ Indian Carrying out Right Society. When you are planning to play live or taped songs of two or even more participants of PPL, this license becomes obligatory.

License obligatory for installing Lift in a multi-storey restaurant:.
9. Lift License- Inspector from Electrical power Division and Labor Commissioner of the city.

Aside from the licenses pointed out above, it is necessary for restaurateurs to take these insurance policies while opening the restaurant:.

10. Insurance required-- Can be drawned from any insurance policy business.
a. Public Liability.
b. Product Liability.
c. Fire Policy.
d. Building & Asset

In addition, you are needed to register under the following sections and act:.
11. Nominations under PFA Act 1954 Section 17 (2) and Rule 12 B of the Rules 1955- Director Prevention of Food Adulteration of the State.

12. Shop and Establishment Act- As prescribed in the Act and as suitable to the state Restaurant is certainly a financially rewarding business, specifically in a country like India where people have taste buds for food from throughout the world. If you dream of becoming an effective restaurateur, do make sure that you consist of all these licenses while conceiving your business plan.


If you are trying to find Licenses for Opening a Restaurant in India, you can hire our legal Intermediary Consultants at PDV Group. For more information, mail us on info@aarnarealty.com or you can call us on our helpline 91-9911661818.

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