Starting a Bar Business in India

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Starting a Bar Business in India

To start a business comes with a set of challenges that demands a lot of thought and planning in order to set sail smoothly. A prospective entrepreneur should be prepared for long hours of work, financial challenges and management pressure. When you decide to start a Bar, the list of obstacles and challenges multiply further. Besides the set rules in the guide book for starting a business, you will additionally have to abide by drinking laws and take care of liability issues in order to start a bar business, especially in India. So before you decided to cap off your first champagne bottle follow the thumb rules of setting up a bar business.

Are you ready to own a Bar Business?

The job description to manage the bar business demands your presence and visibility at all time. Are you the kind of person who can socialise and spend long hours to check sanity level in-house? Do you have the skills to manage and check on staff to ensure the smooth running of the operations? Even if you hire managers to do the job, your presence is still required

Further, opening a bar requires a certain lifestyle pattern. If you are someone who loves to party hard, spend long hours away from home and your family or loved ones do not mind you being away from home- then you fit the bill well to start a bar business.

Bar Business Models

There are different kinds of bars you can set up. Each type of bar requires a different kind of set up, management style, financial backing etc. You have to decide the type of bar that suits your interest and makes you feel confident about running it successfully.

  • Lounge
  • Tapas bar
  • Pub
  • Sports bar
  • Night Clubs
  • Concept bar etc.


Opening a bar like other businesses also requires the right choice of location. The location of your bar can play an enormous role in inviting a larger number of customers. An area with a dicey repertoire could limit the inflow of customers to your bar.

Further, certain states require that a Bar be attached to a hotel with a minimum number of rooms and that Bars be situated at a certain distance from schools, places of worship, etc., Therefore, it is important to consult the State laws prior to choosing a location for setting up a bar.

Applying for a Bar License

A Bar License is a key approval for operating a bar. Therefore, prior to obtaining a Bar License, set up a company and apply for the bar license in the name of the company. This will ensure that the Bar license is tied to a company and can be transferred to another person in the future, if necessary.

Also, before you buy an existing bar or start your groundwork to set up a bar- It is imperative you apply for a liquor license. Obtaining a liquor license is not easy and there’s no guarantee that you might receive a license at all at the end of the day. Hence wait, incorporate a company or register an LLP and fill out your license application form at least two to three months in advance. Once you have received your license proceed with your bar set up only then.

Hiring and Training

Do not hire staff because you can get them on a low salary. The type of bar you set up will require you to make an impression. Your staff will play an important role in showcasing the class and style statement of your bar in the way they serve and interact with customers. So do not depend on the job training. If you are hiring a novice, ensure he or she is buddied with a professional be they can take over the job and manage it on their own. The survival of your business depends on the service your staff offer.

For more information about starting a new business in India, visit

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