Bar License in Delhi

Overview of Bar License in Delhi

Opening a Bar is much more complicated than opening a Restaurant. However, such businesses allow people to diversify their business model and generate more revenue from food as well as Liquor. Any businessman who wants to sell liquors in Delhi needs to obtain a Bar License from the excise department of Delhi.

Establishing a bar without an appropriate license may lead to huge penalties, shutdowns and other legal issues. The excise department of each State deals with the law related to alcohol/Liquor because it is mentioned under the State List of Seventh Schedule of our Constitution. And so the Bar License in Delhi is granted by Excise Department of Delhi.

To obtain this Bar License, one must have completed 18 years of age to hold a relevant licensing qualification. And one must have obtained accredited qualification first to ensure that license holders are aware of licensing laws and have broader social responsibilities involved in the sale of alcohol or Liquor.

The choice of location is essential in the case of attracting a large population of customers. In most states, it is required to be established at a certain distance from schools, places of worship, etc.

Different kinds of bars are established, and each of them needs a different set-up, management style, expenses, financial backing, etc.; before establishing, one has to decide which type of bar suits their interest. The different types of Bars you can find in Delhi are as follows:

• Pub
• Night Club
• Tapas Bar
• Lounge
• Sports Bar
• Concert Bar

Class of Liquor License

Followings are the class of License under the Bar License in Delhi:

Tavern Liquor License

This License is needed for businesses that offer food but make more profits through the sale of alcohol.

Beer and Wine License

This License is granted to sell soft and mild liquors like beer and wine.

Brewpub Liquor License

This License permits the holder to brew or manufacture their own wine and beer.

Restaurants Liquor License

It is a license that merely permits any kind of alcohol to be sold on the holder's premises apart from their main food items business.

Benefit of Bar License in Delhi

Following are the benefits enjoyed by the holder of a bar license:

Compliance with relevant state excise authorities

A restaurant and bar with such a license comply with Delhi state and local excise laws. And so, the excise duty will be paid on the Liquor that is brought within Delhi.

Reputation

Any restaurant and bar that obtains such a bar license in Delhi earn a reputation in the eyes of the people of Delhi.

Increase in turnover

Maximum retailers and manufacturers will start providing more sales to such restaurants, bars or pubs that have bar license and thus, such restaurants, bars, etc., starts making more money.

Types of Licenses

As per availability, the followings are two types of liquors:

Indian Made Foreign Liquor (IMFL)

These are hard liquors manufactured in India.

Imported Foreign Liquor (IFL)

These liquors are manufactured outside India and later imported to India. These liquors are usually more expensive than Indian Made Foreign liquor.

The Delhi Liquor License Rules, 1976, state the type of Licenses that are served in the State. The Act also ensures safe, and quality liquors supply to its consumers.

Based on provisions for granting licenses, the following are various kinds of licenses:

L1 License

L1 License is for wholesale vending to companies, societies, partnership firms/proprietorship firms subject to the condition that the Applicant owns breweries, distillery, manufacturing units or bottling plants. And the Applicant has to abide by the terms and conditions ordered by the concerned authorities.

L6 License

L6 licenses are for the retail of foreign Liquor or beer. Issuance of this License is choosing undertakings of the Delhi Government, such as DTTDC, DSIDC, DSCSC and DCCWS.

L9 License

L9 License is for the retail sale of various brands of Indian Liquor and Foreign Liquor. Earlier, this License was known as L52D. to obtain this License, the Applicant needs to abide by the terms and conditions issued by the concerned authorities.

L10 License

L10 license is for the retail sale of various Indian and foreign liquor brands. However, terms and conditions issued for the L9 License do not apply to L10 licenses.

P10 and P13

These are temporary licenses for serving Liquor at parties, functions and conferences. The terms and conditions ordered for these licenses vary for hotels, clubs, restaurants, residents and other premises.

L15 and L16

To accommodate tourists. The hotel's management must abide by the terms and conditions ordered by the appropriate authorities.

L17 and L18

These licenses are for star hotels that the Department approves of Tourism, and these are located in a commercial area with adequate space for parking.

L28

L28 License is for clubs that have been registered with the registrar of firms or register of co-operative societies to provide services of foreign Liquor to its club members. All such clubs that agree to the specified terms and conditions apply for this License.

L29

L29 License is for clubs or mess that provide beer or Liquor only for Government Servants and which are not subject to any commercial rules and rates.

Documents required for Bar License in Delhi

Following are the Documents that are required to obtain a Bar License in Delhi:

• Identity proof and details of address of the Applicant
• Business premises address
• No Objection Certificate from landowner and copy of rent agreement, if on rent.
• Business and site plan
• Documents of incorporation such as Certificate of Incorporation, Memorandum of Association and Articles of Association, in case it is a company
• List of partners along with Partnership Deed, in case it is a partnership firm.
• No Objection Certificate (NOC) from the Fire Department
• Application Form as prescribed by the Excise Department of Delhi
• Completion certificate of the restaurant or bar
• FSSAI License
• Copy of trade license
• Eating House License
• Income Tax Return
• Photographs of business premises, as per requirement
• An affidavit stating that Applicant has no outstanding dues and no criminal history
• Undertaking regarding the installation of all required facilities, such as CCTV
• Shop and Establishment License
• Fire safety License from the Delhi Fire Department
• If Applicant wishes to install a lift on its premises from Electricity Department and Labour Commissioner's Office, Lift Clearance.
• Music License, if Applicant wishes to play music at its premises.
• Certificate of Environmental Clearance from Delhi Pollution Control Board
• License from the Delhi Municipal Corporation
• VAT/GST Registration Certificate granted by the Department of Trade and Taxes, Delhi, to ensure that the Applicant files tax and maintains compliance.

Procedure to obtain Bar License in Delhi

Following are the important steps to be followed while obtaining Bar License in Delhi:

• The Applicant first understands which form of bar or liquor license is required to operate his desirous business. Based on the requirement, he applied for the Bar License.
• The Applicant files the Application for Bar License with all the required Documents and requisite fee in the prescribed Form to the Delhi Excise Department.
• The officials of the Department conduct a proper verification based on the type of License the Applicant is seeking.
• After proper verification, if the officials are satisfied, the Department will issue a notice with the name and license details. Any objection to the same is brought to the notice of the Excise Department of Delhi.
• If no objection is raised, the Application is passed, and the Bar License is granted. However, if any objection is raised, the Applicant may exercise his right to defend against such objection.

The Bar License of Delhi has a validity of one year and can be renewed annually by making an application in the appropriation Form for renewal.

A Bar License is cancelled if the holder of such License violates any rules laid by the authority. Even those licenses are sold cancelled who sell alcohol to any minor or on dry days.

Corpbiz Assistance in Bar License in Delhi

Obtaining a Bar License in Delhi is not easy, and it has a high chance of getting rejected if the Application is not submitted correctly. We at Corpbiz have an excellent team with detailed knowledge about the correct process. To get our assistance, follow these steps:

• Purchase a Plan for Expert Assistance
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