Sreeram Viswanath

Expert

Published on: Jun 24, 2026

Licenses And Registrations Required For Restaurant

The restaurant business in India is one among the highly regulated ones in the country. It requires the procurement of a wide range of licenses and registrations. Here’s an overview of the various licenses and permits, that constitute a completely legal restaurant business. Know more about

how to start a restaurant.

Trademark Registration

If the name of the restaurant is unique and coined, a

trademark registration can be obtained to prevent others from using the same brand.

Fire License

A No Objection Certificate is to be granted by the State Fire Department after the verification of premises. A restaurant which is due for construction must obtain the certificate before beginning with the construction process. Know more about

fire license.

FSSAI License

The FSSAI license is an important license for any entity involved in the production, storage, manufacturing, transfer or transportation of food and food products. FSSAI license is issued by the Food Safety and Standards Authority of India (FSSAI) and the FSSAI license for most restaurants would have to be obtained from the State FSSAI department. Under FSSAI, the license or registration is divided into three categories namely:

FSSAI Central License
FSSAI State License
FSSAI State Registration

Obtain FSSAI license through IndiaFilings.

GST Registration

Restaurants, whose turnover exceeds Rs 20 lakhs (10 lakhs in case of special category states) must compulsorily obtain

GST registration. Restaurants below this turnover are exempt from GST registration, though they may obtain the same if voluntarily interested. Restaurants which haven’t been enrolled in GST, as obvious as it may be, shall not charge GST on customers. The GST Registration Number mentioned in the bill will act as a proof of registration.

Liquor License

A restaurant selling liquor must specifically obtain a liquor license, which can be obtained from the concerned State Government. It may be noted that Government regulations prohibit liquor services near schools, temples and hospitals; and hence, serving of liquor near these premises wouldn’t make for a license.

Procedure for obtaining Bar license.

Music License

Playing of music in a non-private, commercial or non-commercial establishment requires a license, which is being issued by Phonographic Performance Limited (PPL). Non-conformity with this rule could lead to penal consequences.

Health/Trade License

The 11

th schedule of the Municipal Corporation Act (1957) specifically deals with health and trade licenses. This was created taking into perspective the health of the general public. It validates the safety and hygiene norms of the restaurant. This is generated either by the State Municipal Corporation or the state’s authorized health department.

Eating House License

Eating house license is provided at a nominal cost in various States. This license is issued by the Licensing Police Commissioner of the particular city or town where the restaurant will be located.

Shop and Establishment Act

“The Shop and Establishments Act” was created for regulating the conduct of business like hours of work, child labor, payment of wages, safety and general health of the employees.

Shop and Establishment Act license or registration is issued by the State Governments. The registration must be obtained within a period of 30 days from the commencement of business.

Lift Clearance

Installation of lifts in a multi-storey restaurant requires the clearance of an inspector from the electricity department and the Labor Commissioner of the particular city. Before issuing the clearance, proper inspection on the basic aspects must be conducted.

Environmental Clearance

A restaurant must give due importance to the protection of the environment, and must act in a manner which doesn’t cause distress to the surroundings. Hence, a no-objection certificate may need to be procured from the locality’s Pollution Control Board.

Insurance

In the modern era, very few business exist without obtaining the necessary insurances, as not obtaining the same could result in colossal losses, something which the entity may never recover from. A restaurant business requires insurance for public liability, product liability, fire policy and policy for building and assets.

Gumastha Licence

If you are planning to start any business in the state of Maharashtra, you must obtain a Gumastha licence. To procure it, one needs to possess the following documents;

PAN Card
An Address proof or a no-objection certificate from the landlord
Application letter in the prescribed format to the Municipal Corporation of Greater Mumbai
Authority Letter for Business
Government Prescribed Fees for a partnership Firm
Memorandum and Article Of association
Certificate Of incorporation of the Company
Director’s ID and Address proof

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Frequently Asked Questions

Common questions about Restaurant Licenses and Registrations for Compliance in India.

Obtaining a trademark registration is important to prevent others from using the same unique or coined brand name for their restaurant business. It provides legal protection and exclusive rights over the registered trademark.

A fire license, also known as a No Objection Certificate from the State Fire Department, is necessary to ensure that the restaurant premises comply with fire safety norms and regulations. It verifies that the restaurant has adequate fire prevention and safety measures in place.

The FSSAI (Food Safety and Standards Authority of India) provides three categories of licenses for restaurants: FSSAI Central License, FSSAI State License, and FSSAI State Registration. The specific license required depends on factors like the size and scope of the restaurant operations.

No, GST registration is not mandatory for all restaurants. Restaurants with an annual turnover exceeding Rs. 20 lakhs (Rs. 10 lakhs for special category states) must compulsorily obtain GST registration. Restaurants below this turnover limit are exempt, though they may voluntarily register for GST if desired.

A liquor license is required for restaurants serving alcoholic beverages. It is obtained from the concerned State Government and ensures compliance with regulations related to the sale and service of liquor, such as proximity to schools, temples, and hospitals.

Playing music in a commercial establishment like a restaurant requires a music license from the Phonographic Performance Limited (PPL). This license ensures that the restaurant has the legal rights to play copyrighted music and avoids potential penalties for non-compliance.

An eating house license is a permit issued by the local authorities, such as the Licensing Police Commissioner, to allow the operation of a restaurant business in a particular city or town. It is typically obtained at a nominal cost and is a legal requirement in many states.

Obtaining insurance policies like public liability, product liability, fire policy, and building and assets insurance is crucial for restaurants to protect themselves from potential financial losses arising from unforeseen incidents or accidents. It helps mitigate risks and ensures business continuity.

The Shop and Establishment Act license or registration is mandatory for restaurants to ensure compliance with regulations related to employee welfare, such as working hours, child labor laws, wage payment, safety, and health of employees.

An environmental clearance or a no-objection certificate from the local Pollution Control Board may be required for restaurants to ensure that their operations do not cause environmental distress or pollution in the surrounding areas. It promotes environmental protection and sustainability.