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Tuesday, March 22, 2011

Licenses Required for a Restaurant Business


One area everyone is really worried about is the various licenses/government approvals required for running a restaurant. These are not as complicated as you think or as consultants make them out to be:

Here are the licenses you need to get in Bangalore - other locations will be similar.

1) Trade License for running a restaurant - from the BBMP (Municipal Corporation) office for your location.
2) Health Certificate - again from the health department of BBMP (Municipal Corporation).

For these 2, just ask a restaurant/fast food joint near where you are planning to start and they will give you a contact at BBMP to help you - depending on the size of your project, these 2 will cost you between 10K and 1L (fine dining) with the unofficial fees being the big component - actual license fee is 5K-8K for a small restaurant/fast food joint. You do not need to hire consultants for this. I would strongly recommend that you befriend a fast food/restaurant owner in your area, ask him how much he paid and then request him to help you out with the licneses.

3) VAT registration - your accountant can help you with this. The actual terms vary by state. You have 2 options in Karnataka - composite where you pay 4% of the sale value as VAT - no input credit adjustments need to be made. The other option is to charge the customer 13.5% VAT and then pay the VAT after adjusting for input credit. For a new business, I would recommend the Composite option as no documentation needs to be maintained - so it will be easier to manage when you start afresh. You can always move to the other model later.

4) Shops & Establishment License - your accountant can get you this.

5) Labour License - again your accountant can help you with this.

4 & 5 comes from the Labour department for your area.

These are the 5 licenses you would need to get started. Once you identify the premises, you can work on these licenses (should not take you more than a month to get all these in place).

68 comments:

  1. HI Jayanth, I am Paul, Thank you for sharing.

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  2. Fab Blog...already a fan! Thanks

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  3. Good day Jayanth,
    This blog is indeed a blessing for people like me, who are on the look out for serious guidance. Could you kindly let know the department I need to contact for acquiring a wine tavern license/wine serving license. I have extensively browsed the internet, but I could not find any valuable info.

    Thanks & Regards,
    Praveen

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  4. thank you my friends, i am starting new family bar restaurant in few months @ wada, thane, can u help me?
    9860139834

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  5. Is the composite tax of 4% applicable in karnataka only or in other states in india.

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  6. so helpful for a beginner. get going dude.

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  7. Hi.. Can you or anyone can help with how much area should be allocated to each section of a restaurant, commonly known as FLOOR SPACE INDEX or FLOOR AREA RATIO

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  8. Hello,

    That is invaluable! Thanks for sharing. However, is there a separate license that one needs if we want to have a stall in a fair or lets say an office? (since it will not be in any particular area).

    ReplyDelete
  9. what is the per forma for medical certificate of
    restaurant employees
    suryapadwal3@gmil.com

    ReplyDelete
  10. This comment has been removed by the author.

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  11. thank u sir..

    there are many more licenses n clearances as provided here...
    http://www.nrai.org/ind_updates.asp?id=4

    i need ur reflection on that

    shibanz@gmail.com

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  12. Thanks. Throws a whole lot of light on what I'm looking at...

    ReplyDelete
  13. Can some one say what are the license and formalities required to open a resturent in Kerala as part of an apartment hotel.

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    Replies
    1. I saw that you had asked these questions regarding the licenses in 2012. I 'm also planning to open a coffee shop in Kochi. Let me know if you can be of any help to me and are ready to offer me guidance regarding the same.
      kimjoy1989@gmail.com

      Delete
  14. Can some one say what are the license and formalities required to open a resturent in Kerala as part of an apartment hotel.

    ReplyDelete
  15. Great thoughts you got there, believe I may possibly try just some of it throughout my daily life.
    Company Registration in India

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  16. Luxury Tax is also applicable if AC facility is provided.

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  17. In addition, to the above mentioned licenses and registration requirement, one has to obtain registration and licenses under the Foods Safety and Standards Act, 2006. This Act has come into the effect recently. Kindly check the website of www.fssai.gov.in for registration and license requirement under the Foods Safety and Standards Act, 2006. Great blog indeed, I am highly impressed. However, I request the owner of the blog to kindly update the information a bit in light of the recent changes in laws.

    ReplyDelete
  18. Hi,

    Please let me understand hows Online Afternoon Meal Service plan?
    I feel its gonna be a success in Metros, what do you say?

    ReplyDelete
    Replies
    1. Many ppl have tried this in Bangalore, but I think it was not a success. They closed in 6 months

      Delete
  19. Along with the above list of license now you would need a license from FSSAI. @ Surya Padwal, please find the link below for performa for medical certificate

    http://www.fssai.gov.in/Portals/0/Pdf/MEDICAL_FITNESS_CERTIFICATE%2829-02-2012%29.pdf

    ReplyDelete
  20. To open your own restaurant business, you will be required to have a license. In each city, country and state this kind of business license is different from each other.
    buy a franchise business

    ReplyDelete
  21. What is an eating house License with a “Grade I” rating, in Bangalore.

    Please inform.

    ReplyDelete
  22. i want to sale my hotel in thane rahulram.yadav@gmail.com

    ReplyDelete
  23. hi,

    this Site Show me the famous Restaurant
    in Kammanahalli and it's very nice article
    Restaurants in bangalore

    ReplyDelete
  24. Very helpful information and your blogging is providing a great service to wannabe restraunteurs, Jayanth. Thank you!!!

    ReplyDelete
  25. super Jayanth
    nice to see all the information in one place....
    kudos to you

    ReplyDelete
  26. This comment has been removed by the author.

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  27. This comment has been removed by the author.

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  28. Hi Jayanth

    Could you please clarify on the "unofficial fees" part? Are you pointing to bribing officials?

    ReplyDelete
  29. Thank you very much for all the information.
    I'm just curious, what if i would like to start a restaurant business on wheels ?
    I mean to officially launch a brand that sells fast food on wheels for a targeted customers in bangalore.

    ReplyDelete
  30. Thanks for the Information.. I am setting up a food counter in Bangalore..Do I need to register for VAT and S & E before opening the counter. Or do we have any grace period to register for these licences.

    ReplyDelete
  31. Hi,

    Would you happen to know details about food trucks in India?

    ReplyDelete
  32. very nice blog. More informative this Site Show me the famous Restaurantin Kammanahalli .Thanks for sharing

    ReplyDelete
  33. Today's world we can see many restaurants serving multi-cuisine..Being in India we can also taste Italian,french,Mediterranean and other regional foods even..It is a good evolution in the food industry..

    ReplyDelete
  34. very good information thx a lot www.cloudmurali.com

    ReplyDelete
  35. Thanks for sharing above information... I am very impressed with this blog... Hope for more updates soon. Astro guru provides travel astrology predictions online. You can have a look on astrology site. I would be waiting for your valuable response. Thanks in advance.

    ReplyDelete
  36. Hi Jayanth,

    Appreciate your kind gesture in sharing such crucial/needed info. Wishing you good luck.

    Regards
    Venkat

    ReplyDelete
  37. This is helpful.. I am looking at starting a weekend cafe at my Service Apt /B&B venues and am looking at regulations and this helps. If there are any CAs who wish to work with me for this, I will be happy to talk further...

    ReplyDelete
  38. Hi,

    Would you happen to know details about food trucks/ cart in India? what licenses would be requiired??

    ReplyDelete
    Replies
    1. hiiii did u find any info regarding food truck licensing in bangalore .if yes plz share....thanks in advance

      Delete
  39. Thanks I am planning to have a small shop for Breakfast fast foods like
    samosa
    kachori
    poha
    dosa etc.
    will confirm after i start. thanks

    ReplyDelete
  40. how do i process this in management MOU for restaurant.

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  41. Hey Jayanth. Chef Joy here, wonderful blog, read it after your friend recommended and was indeed impressed by the simplicity yet valuable information provided. Kudos & Keep up the good work.

    For all other food consultancy services ,you can contact my idol, my guide and now a good friend & wonderful human being above all (one of the top F&B Consultants in the industry) I have known in my career span of 35 years on consultaneer1@gmail.com

    ReplyDelete
  42. very nice blog. More informative. Thanks for sharingRestaurant in kammanahalli

    ReplyDelete
  43. Thank you for providing clear information on this. you can also refer BBMP Approved Apartments in Bangalore

    ReplyDelete
  44. very nice blog. More informative. Thanks for sharingRestaurant in Kammanahalli

    ReplyDelete
  45. I am planning and have a thought in mind to start a small snack shop such as ( five star chicken) in my area.....i and my wife are both good cooks and we cook all kinds of food .....i just wanted to know what would the cost be to start such a set up and what i would require to do ......we dont want any employees and we both only will manage for now...i am physically handicapped using a prosthetic limb on by right leg ...want to do something on my own , i am from a middle class family and need to take a loan for such a project ...your advice and help is seeked.

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  46. Hi Jayanth, I have been reading up your blog and the information is very helpful. I need to check with you if there is something such as a 'Brand License' where I can get the name of my new cafe registered. I have been told this is one of the first licenses that can be done even if I have just finalized a name only at this stage. Then other licenses such as VAT Regn. Hygiene License & Trade will follow? Will appreciate your feedback. Thanks!

    ReplyDelete
  47. FSSAI stands for the Food Safety Standards Authority of India. This was instigated via the Food Safety and Standards Act in the year 2006. The FSSAI looks into
    Manufacture
    Storage
    Distribution
    Sale
    And Import of the food items
    The main aim of this body is to make sure of the fact that food across the country is safe for consumption.
    We can help your organisation get an FSSAI license. We’ll provide you with
    Consultation
    Training
    Documentation
    This will help you in getting an FSSAI license. However, you need to register, implement the standards and undergo training as well in order to attain an FSSAI license.
    Hence, if you are a part of a food chain manufacturing then, you should waste no time in getting an FSSAI license. The following businesses must get an FSSAI license:
    more information
    Quality Services & Training Pvt.Ltd.




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  48. Does anyone know any coffee shop owner in Kerala? Someone who can help me a bit in answering my questions and help me in my journey of opening my own coffee shop in Kochi
    kimjoy1989@gmail.com

    ReplyDelete
  49. As every year many thousands of tourists visit India, Thane therefore, Hotels in Thane and cottages is the prime need and there are number of hotels are available. In Thane, you will get number of hotels that ranges from budget to 5 stars and these hotels provide excellent facilities to their customers.

    ReplyDelete
  50. I have law firms for sale and the process is quite complicated. I’m not going to try to do it on my own but will contact a broker or a consultant who can guide me through the process.

    ReplyDelete
  51. Wis to open a sports bar in Indore/bhopal.
    can u please tell me the license fee and the overall cost for the startup..??
    - aniruddh.keswani@gmail.com

    ReplyDelete
  52. Bro u have no idea how helpful your posts are....thank you so much......u rock !!!

    ReplyDelete
  53. Hi Jayanth, Nice blog..lot of info about restaurant Business.. I am Software Guy from Chennai wants to get into food business..
    What is your thought on serving home made foods only to apartment housing society (or) high rising apartments..
    Thangaraj.A

    ReplyDelete
  54. Jayanth
    Can you help me out with the info.
    I am planning to start a stall in food court in one of the Tech. parks in Bangalore.
    Please let me know the licenses required for that.

    Thanks much!

    ReplyDelete
  55. Hello, thank you for sharing this valuable information. I am planning to start a medium level of restaurant @ electronic city Bangalore, serving Kerala cuisine. Can you please let me know the initial investment required for it and how much space should I be looking for.

    ReplyDelete
  56. Bargain Online for the best hotels at MyDeals247.com
    For more please watch the video..http://www.youtube.com/watch?v=UWigWICKsII

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  57. This is very nice post and people getting more information about restaurant so this post will definately help them to find best restaurant.I will share this post with my friends.
    Top Restaurants in Delhi

    ReplyDelete
  58. I must say, you have shared few restaurant startup insights that were not known to me.

    I have also written a post about the same topic on my personal blog, i hope you will not mind it accepting it within comments for further reading.

    thanks

    ReplyDelete
  59. Are these guidelines also important for opening a dhaba. Please answer as i have one. Budget hotel Jaipur

    ReplyDelete
  60. Your blog is very informative and gracefully
    your guideline is very good.Thank you
    Noida Restaurants

    ReplyDelete