What are the Licenses Required to Start a Bar in India?

Opening a Bar or especially a Restaurant cum Bar or a Restro Bar seeks like an overwhelming and glamorous job. However, it shall be pertinent to state that starting a Bar in India is no cakewalk. The reason for the same is that one needs to undergo brainstorming sessions on selecting the right location, deciding the food menu, hiring the right number of employees, the right marketing, and the licenses required to start a Bar in India.

However, it shall be considerate to state that out of all the requirements, one must delegate considerable time on the licenses required to start a Bar in India if he/she wants to avoid future legal trap and proceedings.

In this blog, we will discuss the concept, growth, and the licenses required to start a Bar in India.

Growth of Indian Bar Industry

In India, the count of Pubs, Bars, Clubs, and Lounges (PBCL) have grown much faster than restaurants, cafes, hotels in the past few years. Further, the same is majorly driven by competitive pricing, younger consumers, and a proliferation of options.

Further, it shall be relevant to state that the expansion and growth of the commercial real estate sector have driven the progress of PBCL market as well. The reason for the same is that, nowadays, malls in developed cities and day out centres in small cities are grabbing everyone’s attention and are indirectly supporting the expansion of PBCL market.

Moreover, the significant and sudden rise in the popularity of alcoholic beverages is also due to change in lifestyle and income, especially among youth.

Some of the reports that states the growth of Indian Bar Industry or PBCL sector are as follows:

1. As per a report published by Current Market Insights, the Indian Alcohol sector is expected to cross Rs 5482851.3 billion by the end of 2027. Also, the Indian Alcohol sector is projected to cross CAGR (Compound Annual Growth Rate) at 7.8% for the period 2019 to 2027;
2. According to a report published by STATISTA, on 16.10.2020, the annual alcohol consumption in India is expected to cross 6.5 billion liters by the end of 2020. Also, the revenue generation from alcoholic drinks will amount to the US $1371385 at the year of 2020. Moreover, this industry is expected to grow annually by 8.7% CAGR for 2020 to 2023;
3. As per a report published by IWSR Drinks Market Analysis, India stands at ninth position in the world for alcohol consumption by volume;

Factors to Consider While Starting a Bar in India

The factors to consider while starting a Bar in India are as follows:

1. Decide a Prominent Location;
2. Buy Robust Kitchen Equipment;
3. Purchase Quality Raw Material;
4. Choose Magnificent Ambiance and Colours;
5. Arrange the Licenses Required to Start a Bar in India;
6. Dedicated and Experienced Workforce or Manpower;
7. Choose Attractive Staff Uniforms;
8. Engage in Promotion and Marketing;

Different Types of Licenses Required to Start a Bar in India

The different types of Licenses Required to Start a Bar in India are as follows:

Business Registration

An individual or a budding entrepreneur who wants to start a Bar in India requires to acquire Business Registration based on the type of bar he/ she needs to open.

For example, if an individual wants to start a bar as a partnership firm, then, in that case, he/she must obtain Partnership Firm Registration under the provisions of the Indian Partnership Act 1932^[1].

FSSAI License

Out of all the licenses required to start a bar in India, FSSAI License in India is the most significant one. Further, the reason behind the same is that a Bar comes under the realm of FBO (Food Business Operators). That means every business owner must acquire FSSAI License prior to commencing its business operations

Documents required for obtaining FSSAI License

The documents required for obtaining FSSAI License in India are as follows:

1. Identity Proof;
2. Address Proof ;
3. Valid Email Address;
4. Phone Number;
5. Affidavit;
6. Declaration of the Food Safety Management Plan;
7. Kitchen Layout Plan;
8. List of Food Items and Category;
9. Water Testing Report from an ISI approved Facility;
10. No Objection Certificate (NOC) either from the partner or owner;
11. Medical Certificates of the Employees;

Health or Trade License

Both the Municipal Corporation and Health Department of the specific state has the right to grant the Trade License to start a Bar in India.

Documents required for obtaining Trade License

The documents required for obtaining a Trade License in India are as follows:

1. Address Proof of the premise being used, such as Ownership proof, RentalAgreement or NOC from the landlord;
2. Three copies of the key plan and site plan and layout;
3. Indemnity bond for Rs 100;
4. A duly signed Structural Stability Certificate by Structural Engineer;
5. Utility Bill in the form of Electricity Bill and Water paid Bill;
6. Proof of adequate Sewer Connection;
7. Letter from Delhi Police;
8. Water Testing Reports;
9. Layout Plan of the Premises;
10. Medical Certificates of all the Employees;
11. Proof of Property Tax;
12. Lal Dora Certificate, if in case applicable;
13. Medical Fitness Certificate of all the Workers;

Eating House License

If in case a person wants to start a bar shop in India, then, he/she requires to acquire an Eating House License from the Licensing Police Commissioner of the respective state.

Documents required for obtaining Eating House License

The documents required for obtaining the Eating House License in India are as follows:

1. Location Plan of the Bar;
2. Postcard size photographs of the Bar Shop;
3. Identity Proof of the applicant;
4. Residential proof of the applicant;
5. Proof of Legal Occupancy of the Bar;
6. In case of rental property, NOC (No Objection Certificate) from the owner;
7. A copy of the Trade License from NDMC/MCD/DCB/ or Airport Authority of India, together with the receipt;
8. Attested stamp paper;
9. Certificate of Incorporation (COI);
10. Complete details of the owner;
11. A copy of Board Resolution;
12. FSSAI License;
13. Details of all the employees;
14. Certificate of GST Registration;
15. Police Clearance Certificate;
16. Installation proof of Fire safety measures;

Also, Read: How to Start a Food Truck Business in India: A Complete Checklist

Liquor License

Out of all the licenses required to start a bar in India, Liquor License is the most significant one. The owner or the entrepreneur needs to obtain Liquor License from the Local Excise Commissioner at the particular state government websites. If in case, the owner fails to do so, the same will result in the levy of hefty penalties.

Documents required for obtaining Liquor License

The documents required for obtaining Liquor License in India are as follows:

1. Identity proof of the applicant;
2. Address proof of the applicant;
3. Address proof of the premise being used;
4. No Objection Certificate (NOC) from the Fire Department;
5. No Objection Certificate (NOC) from the Municipal Corporation;
6. An application with all the business details;
7. List of the Directors, if n case the applicant is a company;
8. Memorandum of Association (MOA) and Articles of Association (AOA), if in case the applicant is a company;
9. A copy of the latest ITR (Income Tax Return);
10. Latest passport-sized photograph of an authorized person;
11. An affidavit stating that the authorised person does not have any previous criminal record under any state act;
12. An affidavit stating that the authorised person has not caused default in paying any dues to any department;

Shop and Establishment License

The main objective behind the introduction of Shop License or Shop and Establishment License is to safeguard and protect the rights of the workers employed in the bar.

Documents required for obtaining Shop License

The basic documents required for obtaining Shop License in India are as follows:

1. Pan Card;
2. Identity Proof;
3. Address proof of the proprietor, partner, or the company;
4. Details of the employees;
5. Postcard photo of the Bar shop;
6. Address Proof of the premise used as Bar;

GST Registration

Out of all the licenses required to start a Bar in India, another crucial one is GST Registration. The owner or the applicant requires to apply for GST Registration if the aggregate annual business turnover of the Bar shop exceeds the threshold of Rs. 40 lakhs and Rs. 20 lakhs for the special states.

Documents required for obtaining GST Registration

The basic documents required for obtaining GST Registration in India are as follows:

1. Registration Proof of the Business;
2. Address Proof of the premise being used as Bar;
3. Identity Proof of the owner;
4. Address Proof of the owner;
5. Details of the Business Bank Account;
6. PAN Card;
7. Lease Agreement or Rent Agreement;

Fire NOC

Every Bar shop owner should obtain a Fire NOC or Fire Security Certificate from the state Fire Department in which he/she wants to start a bar shop.

However, the authorities grant this certificate only after the proper installation of fire extinguishers and implementation of fire safety measures in the premise.

Documents required for obtaining Fire NOC

The basic documents required for obtaining Fire NOC in India are as follows:

1. A copy of the Layout Plan of the Building granted by the Building Authority, including the Analysis Report, Site Plan, Layout Plan, etc.;
2. Building Model;
3. Checklist with a filled in the questionnaire;
4. Certified checklist issued by the architect for the building or premise;
5. A copy of the Aadhar Card and PAN Card of the applicant;
6. A postcard photograph of the full building clicked from outside;
7. A certificate of Building Stability;
8. The Building plans need to contain all the information and details as prescribed by the bye-laws;
9. Certificate of Quality for Electric Wiring;
10. Completion Certificate from a recognized authority;

Lift Clearance Certificate

In case the applicant has a multi-story bar and wants to install a lift in it, then, in that case, he/she requires to obtain clearance from an inspector appointed by the electricity department and Labour Commissioner of that respective city. However, it shall be pertinent to state that the Electrical Inspector grants this license from the office of Labour Commissioner, only after verifying and confirming the installation of layout, life, safety gear, etc. Further, state-wise applications are accessible for obtaining lift clearance.

Music License

If in case the owner wants to play songs or music in the bar shop, the, in that case, he/she requires to acquire a Music License from the IPRS (Indian Performing Rights Society).

Documents required for obtaining Music License

The basic documents required for obtaining a Music License in India are as follows:

1. Personal Details, such as the Name, Address, and Nationality of the applicant;
2. Business Details;
3. A comprehensive list concerning the type of music that the applicant wants to play;
4. In case of an LLP (Limited Liability Partnership), the applicant requires to submit the COI (Certificate of Incorporation) with the authorities;
5. PAN (Permanent Account Number) Card;
6. Certificate of Online GST Registration;
7. Address Proof of the premise in the form of an Electricity Bill, Voter ID, and Driving License;

Environmental Clearance Certificate

It shall be mandatory for the Bar owner to obtain a CEC (Certificate of Environmental Clearance) from the Ministry of Environment and Forest. Further, the main behind this license is to ensure that the operation of a Bar will not have any adverse effect on the environment.

Signage License

Out of all the licenses required to start a Bar in India, the unique one is Signage License. If the owner or the applicant wants to market and advertise his/her Bar by way of Logos, Word of Mouth, Pictures, Symbols, and Posters, then he/she requires approval in the form of signage license.

Further, the applicant can acquire this license from the local civil authorities, such as the Municipal corporations of the respective area.

Conclusion

In a nutshell, starting a Bar in India seeks like an irresistible and desirable job. However, the same is no cakewalk. Therefore, one needs to carefully ready the blog, to initiate the journey of starting a Bar.

Further, for any other doubt or dilemma, reach out at Swarit Advisors, our experts will assist you with the registration process of the licenses required to start a bar in India.

Also, Read: How to Open a Bakery Business in India?