What You Should Know Before Starting A Restaurant Business
Registration & Licenses

What You Should Know Before Starting A Restaurant Business

In 2023 the food business in India is growing quickly. Millennials eat out because it's cheap and has become a part of their culture. Because of this, a lot of people have gone into the food restaurant business. In fact, many small cafes that are run out of homes have opened up in places like Bangalore and Hyderabad. But opening a restaurant is not an easy thing to do. There are a number of rules and regulations to follow. Before you decide to open a restaurant, we'll tell you what you need to know.

Regulatory Requirements of a Restaurant Business: FOOD SAFETY AND STANDARD AUTHORITY OF INDIA

FSSAI (Food Safety and Standard Authority of India) License

This license is also known as the Food License. It is issued by the Food Safety and Standard Authority of India and is a guarantee of the fact that the food served by the respective restaurant is safe to eat. A 14-digit number is given at the time of registration. A restaurant certified by FSSAI is an assurance to the customers that the food provided is according to the safety standards set by FSSAI. A list of documents such as ID Proof, Kitchen Layout Plan, NOC of the owner and many others must be submitted in addition to filling an online form on the FSSAI website. Thereafter one must submit the required documents and the application form and then make a payment of INR 2000 to the Regional/State Authority. 

 

Liquor License 

The restaurants who wish to serve liquor as well in their restaurant must mandatorily obtain a Liquor license from the Local Excise Commissioner. A list of documents is required to obtain a liquor license of which the most important is obtaining a NOC from the State Fire Service department.  However, getting a liquor license is not that easy, after the verification of the documents, a fee of INR 5,000 must be paid.  An additional INR 50,000 must be paid for each additional brand like whiskey, rum, gin, brandy, vodka, etc. 

 

Signage License 

Marketing is essential for any business. Good marketing skills help a person to give fame to his business, but in order to market your restaurant, one must obtain a license. Yes, even for marketing your restaurant you must receive a license. This is known as the Signage License.  In order to market your restaurant through person, logos, symbols or posters one must obtain a legal permit. 

 

Certificate of Environment Clearance 

The restaurant is obliged to take care of the environment as well. It must take adequate measures to ensure that it does not harm the environment in any form. In order to ensure that the restaurant is environmentally compliant, it must obtain a Certificate of Environmental Clearance. In order to obtain this license, one must submit certain documents with the application form to the concerned authorities. 

 

Location and Infrastructure:

You need to have a suitable location for your food business, with adequate space for storage, preparation, and cooking. You also need to ensure that your business meets the health and safety requirements, including ventilation, lighting, and sanitation facilities.

 

Staff and Training:

You need to hire trained staff for your food business and provide them with regular training on food safety, hygiene, and customer service.

 

Menu Planning and Food Quality:

You need to plan your menu and ensure that the food you serve is of high quality, nutritious, and safe for consumption. You should also comply with the FSSAI guidelines on food labeling and packaging.

 

Music License 

In order to play music in a restaurant, a specific license is required. As per the Copyright Act, 1957, those who play pre-recorded music in any non-private, commercial or non- commercial establishments must have a Music license as issued by the Phonographic Performance Limited (PPL).

 

Fire Safety License 

The safety of customers must be the top priority of the restaurant. The restaurant should be designed in such a manner so as to protect the customers from hazards such as fire. Thus, a restaurant must necessarily be fire safety compliant and must obtain a NOC from the fire department. Unlike other licenses, this license must be obtained before the construction of a restaurant starts.   

 

Shop and Establishment License 

This license is required to open a fine dining restaurant or a food truck. As per the Shop and Establishment Act, any person who commences this business must apply for this license within 30 days of starting it. The cost incurred on obtaining this license depends on various factors such as number of employees, location of the restaurant and many more. 

 

Conclusion

Starting a restaurant involves some tricky rules, but getting a lawyer to help can make things much easier. A lawyer can help you get all the licenses you need and make sure everything's in order. This can make running your business smoother because you won't have to worry about legal problems. In more detail, when you're setting up a restaurant, there are quite a few licenses and permits you need. These can include things like a FSSAI license, a liquor license if you're planning to serve alcohol, and possibly others depending on where you are and what kind of food you're serving. This can get a bit complicated, but a lawyer who is an expert of food laws can guide you through the process. Once your restaurant is up and running, a lawyer can also help you stay on top of any changes in the law that might affect your business. They can help you understand what the regulation mean for your restaurant and what you need to do to follow them. This way, you can focus on running your restaurant instead of worrying about legal issues. In conclusion, while starting a restaurant involves dealing with some complex laws and regulations, getting legal help can make this process much simpler and let you focus on making your restaurant a success.

last updated on May 14, 2023