What licences are required to open a restaurant in India?

To open a restaurant in India, you need FSSAI licence for restaurant, GST registration, fire safety certificate, trade/health license, eating house license, shop & establishment registration, and liquor license (if applicable).

Is FSSAI license mandatory for restaurant businesses?

FSSAI registration for restaurant is compulsory for all food businesses, irrespective of size or turnover.

What is the best business structure for a restaurant in India?

For small restaurants, an LLP is cost-effective. For scalable or investment-oriented ventures, a Private Limited Company is the best option.

What is the GST registration limit for restaurants in India?

The GST registration limit for restaurant businesses is ₹20 lakh annually (₹10 lakh for special category states).

What is the cost of FSSAI license for a restaurant?

The FSSAI license fee for restaurant ranges from ₹100 to ₹7,500 per year, depending on whether it is Basic, State, or Central registration.

FSSAI Licence for Restaurant & GST Registration | Restaurant Licences in India

Restaurant Licences and Registrations in India – Complete Legal Guide

The restaurant business in India is witnessing rapid growth, driven by urban lifestyles, food delivery platforms, and rising disposable income. Opening a restaurant today is a lucrative opportunity—but success depends not only on food quality and ambience, but also on strict legal compliance.

Before serving your first customer, you must obtain multiple restaurant licences and registrations in India, covering food safety, taxation, fire safety, labour laws, and municipal approvals. Non-compliance can result in penalties, licence cancellation, or even closure.

This guide explains licences required to open a restaurant in India, the correct business structure, approval process, and why each registration is essential.

Choosing the Right Business Structure for a Restaurant

Selecting the correct legal structure is the foundation of your restaurant business. The most common options are:

1. Sole Proprietorship / Partnership

Easy to start but carries unlimited personal liability. Not ideal for long-term growth or franchising.

2. Limited Liability Partnership (LLP)

A popular choice for small to mid-scale restaurants. It offers limited liability, operational flexibility, and low compliance costs.

3. One Person Company (OPC)

Suitable for solo founders seeking corporate status with limited liability.

4. Private Limited Company

Best for restaurants planning investment, brand expansion, or franchising. Preferred by investors and banks due to structured governance.

Best practice: LLP or Private Limited Company is recommended for most restaurant businesses.

Key Approvals Required Before Opening a Restaurant

Before applying for operational licences, certain approvals may be required:

Fire Safety Certificate for Restaurant (Fire NOC)
Confirms compliance with fire prevention measures such as extinguishers, alarms, and emergency exits.
Building Plan Approval & Occupancy Certificate
Mandatory for new constructions or renovations to confirm zoning and structural safety.
Environmental Clearance (if applicable)
Required for large kitchens, DG sets, or high waste-generating units.

Essential Licences Required to Open a Restaurant in India

1. FSSAI Licence for Restaurant

The FSSAI registration for restaurant is mandatory for all food businesses in India.

Issued by: Food Safety and Standards Authority of India
Types: Basic, State, Central (based on turnover)
Display of FSSAI certificate for restaurant is compulsory

FSSAI License Fee for Restaurant (Indicative):

Basic Registration: ₹100/year
State License: ₹2,000–₹5,000/year
Central License: ₹7,500/year

The FSSAI license for restaurant cost depends on scale and turnover.

2. GST Registration for Restaurant

Restaurant GST registration is mandatory if annual turnover exceeds the threshold.

GST registration limit for restaurant:
₹20 lakh (₹10 lakh in special category states)
Standard GST rate for restaurants (without ITC): 5%

3. Fire Safety Certificate for Restaurant

Issued by the local Fire Department after inspection. Mandatory for dine-in restaurants and multi-floor premises.

4. Trade License / Health License

Issued by the municipal authority to certify hygiene, waste disposal, and public health compliance.

5. Eating House License

Issued by the Police Department to regulate public eateries and ensure law & order.

6. Shop & Establishment Registration

Mandatory for regulating employee working hours, wages, and labour conditions.

7. Liquor License (If Serving Alcohol)

Issued by the State Excise Department. Highly regulated and location-specific.

8. Music License (IPRS / PPL)

Required if copyrighted music is played inside the restaurant.

Why Restaurant Licences and Registrations Are Mandatory

Legal Protection: Prevents penalties, sealing, or forced shutdowns
Food Safety Compliance: Ensures hygienic preparation and storage
Customer Trust: Licensed restaurants gain higher credibility
Business Expansion: Required for Swiggy, Zomato, funding, and franchising
Risk Mitigation: Protects owners from legal and financial liability

How LegalInfinix (Lawfinity) Helps Restaurant Owners

Opening a restaurant involves multiple departments, inspections, and renewals. LegalInfinix simplifies the process by offering end-to-end compliance support, including:

Business incorporation (LLP / OPC / Pvt Ltd)
FSSAI restaurant registration
GST registration for restaurant
Fire safety certificate coordination
Trade & Eating House licence assistance
Renewal tracking & compliance calendar

We liaise directly with government departments to ensure faster approvals and error-free filings.

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