What are the legal formalities required to start a food service business in India?

Posted on: June 22, 2018 Posted by: massterkey Comments: 0

What are the legal formalities required to start a food service business in India?

Once you have decided to venture into food service business in India, the next important step is to know the regulatory requirements for setting up these business. The number of licenses/permissions for setting up the food service business depends on the state-level requirements and the services that are offered.

There is no single-window clearance system in India to obtain these regulatory requirements. The number of NOC’s/licenses can go upto 30 based on the service and the state’s legal requirement. Listing down some major licenses/permissions/NOC’s that are required to set up the food service business in India.

Sr.No License/ certificate Issuing authority Why its required?

1

Food license FSSAI (Food Safety and Standards Authority of India) Primary requirement to register the business

2

Health trade licence Municipal Corporation or Health Department of State Mandatory to be obtained in the state(s) of operation(s)

3

Eating house licence Police department (city/state) Required to have a proper eating place

4

Fire security certificate Fire department (city) No Objection Certificate (NOC) required for security in case of fire

5

Liquor/bar licence Excise Commissioner (city) Required if liquor served at the food outlet

6

Approval/re-approval Department of Tourism (state) Mandatory to apply for Liquor licence

7

Lift clearance Labour Commissioner (Electrical Inspector) Required for the multi-storey food outlets to ensure its compliance with safetynorms for the lift (elevator) operations

8

License for playing music/ video Phonographic Performance Limited or Indian Performing Right Society Necessary for playing recorded music and/ or videos in the outlet to comply with the Copyright Act, 1957

9

Environmental clearance Pollution board (state) NOC required to ensure compliance with pollution norms

10

Insurances Recognised insurance company Mandatory insurances required for assets and products liability: Public liability , product liability, Fire Policy, Building & Asset; Recognised Insurance company

11

Signage licence Regional/local civic bodies Required for public display of signs

12

Shop and establishment registration Concerned State authorities (as applicable) Registration necessary to safeguard employee rights and working conditions

13

Weights and Measures department Controller of Legal Metrology Act Approvals required to comply with the Legal Metrology Act, 2009

14

Registration under Factories Act* Department of Labour Required if the number of employees exceeds 10

15

Goods & Service Tax (GST) and Value Added Tax (VAT)* Department of Commercial Taxes Required for registration under the applicable tax authorities

Help us in becoming better, drop in your comments with important licenses that you had to get cleared. Please don’t forget to specify your restaurant/food service name and its location (we can drop-in anytime  to taste the sumptuous cuisine 🙂 )

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