GETTING READY TO OPEN A NEW RESTAURANT….!!!
Starting a restaurant business in India requires a couple of registration and licensing from the respective legal authorities. You have to make sure that all legal documentation and licensing are done properly. If you miss a single license or registration, you will have to face so many legal consequences.
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.
- FSSAI (Food Safety and Standard Authority of India):
It is one of the most important licenses required for restaurants in India. FSSAI registration will ensure that the food delivered at the restaurant is approved to the food safety standards of India.
- Liquor licence:
If you intend to serve alcohol at your establishment, you will need a liquor license. As with most permits and licenses, the rules for obtaining and keeping a liquor license vary by state The type of license you obtain will be determined by the type of liquor you intend to sell as well as where you are located.
- Trade licence:
The process of obtaining the Trade License for restaurants is easy, and it will cost you around Rs.500-Rs.50,000(approx.). A restaurant can apply for Trade License online.
- Labour (Shop and Establishment Act):
To run a food business in India, you must register your restaurant under the Shops and Establishment Act. You need to register your restaurant within 30 days of the commencement of your business.
- Music license (Phonographic Performance Limited):
To play music at your restaurant you need to get a restaurant music license. The law came under the Copyright Act of 1957. The license is issued by Phonographic Performance Limited by (PPL). The restaurants playing music without this license will have to face legal penalties.
- GST registration:
GST registration is one of the important licenses which we have to acquire for the smooth running of the business. For restaurants, the GST registration is important for those who have the annual turnover above 20 lakhs and annual turnover above 10 lakhs in case of North East states. Restaurants have to pay GST of 5% and 18% according to the type of restaurants they own.
- Professional tax registration:
Professional tax is a tax levied by the state government. professional tax is levied upon the income earned in any business and the tax is to be paid by the employer. The professional tax registration application must be to the State’s tax department within 30 days of employing staff in the business.
- Other Licenses:
- NOC from the Fire Department: 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.
- Certificate of Environment Clearance (CEC): To obtain CEC one has to submit an application along with the Environmental Impact Assessment Report (EIA) or the Environment Management Plan (EMP), details of public hearing and NOC granted by state regulators.
- Health license: This is the paperwork that requires the anxiety-provoking in-person visit from the health department. They ensure that your restaurant is operating in accordance with restaurant food safety regulations
These are the list of licenses and registrations required for starting a restaurant business in Karnataka. Ensuring all these licenses and registration will help you save money and from all the legal consequences in future.
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