Opening a restaurant in India can be a dream come true, but it requires careful planning, especially when it comes to legal compliance. Nowadays, a lot of emerging restaurants are also using tools such as restaurant billing software to enhance their overall customer experience. To run a restaurant smoothly, obtaining the right set of licenses is essential. This blog covers every restaurant license you need, how to get it, the cost involved, documents required, and much more. This is your ultimate guide to understanding restaurant licenses in India for 2025.

Why Is A Restaurant License Important?

Restaurant licenses are mandatory legal documents that ensure your business complies with national and local laws. They protect your business from penalties, build customer trust, and allow you to operate without disruption. Failing to secure proper licenses can lead to hefty fines or even closure.

1. FSSAI License (Food safety and standards authority of India)

The FSSAI license is mandatory for all food businesses in India. It ensures food quality and safety standards.

Types of FSSAI Licenses:

• Basic Registration: For businesses with turnover below ₹12 lakhs.
• State License: For turnover between ₹12 lakhs and ₹20 crores.
• Central License: For turnover above ₹20 crores or operations across multiple states.

How to Apply:

1. Visit FSSAI portal.
2. Choose restaurant license type.
3. Fill out the online form.
4. Upload documents.
5. Pay fees and wait for inspection.

Documents Required:

• ID and address proof
• Kitchen layout
• Food safety management plan
• NOC from property owner

Cost:

• Basic: ₹100/year
• State: ₹2000-₹5000/year
• Central: ₹7500/year

2. Shop and Establishment License

Issued by the State Labour Department, this license governs working conditions.

Key Aspects:

• Working hours
• Rest periods
• Cleanliness and safety
• Leave and wages

How to Apply:

• Visit the state’s Labour Department site
• Submit business details and documents
• Pay the fee and await approval

Business Registration

You need to register your business structure to operate legally.

Options:

• Sole Proprietorship
• Partnership
• Private Limited Company
• LLP (Limited Liability Partnership)

Steps:

• Obtain Digital Signature (DSC)
• Apply for Director ID (DIN)
• Register on the MCA portal
• Get PAN and TAN numbers

3. Eating House License

Required for any establishment serving food to the public. Issued by the city police commissioner.

Steps to Apply:

1. Visit the city police licensing portal
2. Fill in your details
3. Submit documents and fees
4. Undergo police verification

Documents Needed:

• Fire NOC (if capacity > 50)
• Property papers
• CCTV undertaking
• FSSAI and Trade license

Cost: Around ₹300 (varies by state)

4. Fire safety Certificate/Fire NOC

Issued by the Fire Department, this category of restaurant license confirms fire safety compliance.

Process:

• Apply online via the Fire Department portal
• Upload building plan and fire equipment details
• Schedule inspection
• Receive approval

Documents Required:

• Building layout
• Fire safety setup
• Stability certificate

Liquor License (if applicable)

Essential for restaurants that serve alcohol. Issued by the State Excise Department.

Application Process:

• Visit Excise Department website
• Fill out application
• Upload documents
• Pay fee and wait for inspection

Documents Required:

• Business registration
• FSSAI license
• Property papers and NOC
• Trade License

Cost: Varies widely by state and type of license

5. Health/Trade License

Issued by the local municipal corporation, this license ensures hygienic operations.

Steps to Apply:

• Visit municipality website
• Submit details and documents
• Pay fees and get inspection done

Documents Required:

• Identity proof
• Business registration
• Sanitation plan
• Property NOC

GST registration

Required if your annual turnover exceeds ₹20 lakhs (₹10 lakhs for NE states).

How to Apply:

• Visit GST portal
• Fill out the form and submit documents
• Await approval

Documents Required:

• PAN and Aadhaar
• Address proof
• Business registration certificate

Conclusion

Pro Tip: Start the restaurant license process at least 2-3 months before your opening date to avoid delays. Consider hiring a legal consultant or professional service to streamline the documentation and application process.

By securing the right licenses, you lay the foundation for a legal, safe, and trustworthy restaurant business in India. You can also integrate technologies such as an efficient restaurant billing software for better operations. Follow this guide step-by-step and you’re well on your way to opening your dream restaurant in 2025!