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What Are the Compliances to Start a Restaurant Business in India?

What Are the Compliances to Start a Restaurant Business in India?

Monday April 01, 2019,

4 min Read

Compliances to Start a Restaurant Business

India has been doing very well in several sectors, India’s rank on ease of doing business has improved tremendously due to factors like easy and flexible loan availability, easy compliance requirement from Government side, better infrastructure. One of the most promising and growing sector of India is food and beverage industry. India will have the biggest food and beverage industry by 2020. The surging middle class and busy schedule of people has made food business grow even more every day. In this age of entrepreneurship, people are coming up with an unique idea on their restaurant or food stalls. However it is not just so easy to open your food outlet, you need to understand the loan availability to invest in your business and also several compliance for the same. There are various license and registration requirements to open a restaurant in India.There are various regulatory monitoring this industry, for example FSSAI, Food Safety and standard authority of India. 

Here is the summary on compliances to start a restaurant business in India:

Food License in India: One needs to have FSSAI registration, License- There are three categories of the same and it depends on the nature of your business and turnover. Food license is regulated by FSSAI (Food Safety and Standard Authority of India), It’s role is not just limited to issue of the license but to ensure that certain standard such as display requirement of food outlets and other disclosure to customers for safety and hygiene purpose is taken care of by FSSAI.


Shop & Establishment Act: A restaurant has to be registered under shop establishment Act that apply in the concerned state. This act safeguards employee rights and working conditions. The procedure will include filling up a specified form with submitting your identity proof, address proof of place of business and detail of all your staff.

Weights & Measures Department: According to the Legal Metrology Act, 2009, you require approval for the weighing and measuring instruments you use in the restaurant from the Weights & Measures Department.


Trade License: For any kind of business you are doing. The local authority such as your municipal corporation or the local health department needs to be informed to take permission of having a food business such as a restaurant or stall. There are formalities such as filling up application provided by them and getting their permission to start the business.

Permission through a license for outdoor eating or eating out: When you visit any food outlet it generally offers you option such as a balcony or terrace/rooftop facility apart from indoor eating. If you will be providing eating out facility then you need to have a separate license for that as well. City or state police provides this facility. In mostly all cities this procedure can be done online.

Fire safety Certificate: All restaurants need to be secure against fire hence they need a NOC from the fire department of the city. Not complying with fire safety may cause huge damage in form of penalty from Government and most importantly losing reputation in future if any accident happens in future and your brand name gets caught on the fact that you never had a fire certificate.


Liquor/Bar License: If your place of business sells liquor, you shall mandatory have a license. Not holding a liquor license means a huge penalty.


Lift Clearance: Restaurants which has lift facility in building premises need to ensure that the lift operations comply with safety norms. Relevant authority certification shall be kept by restaurants.


License for playing music/video: This license is obtained from Phonographic Performance Limited (PPL)

Environmental Clearance: Certificate from the Pollution Board of your state is required to ensure the restaurant's activities comply with the pollution standards.

Signage Certificate: Restaurants should signage license from the local authorities like Municipal Committee or City Corporation which is required for public display of signs.

GST Registration: You shall have GST registration if you plan to open a food business in any form like stall, truck, and restaurant.