Bar license in UP

Overview of Bar License in UP

A Bar License is a key for operating a bar in Uttar Pradesh, even for the home bar (since 2021). Obtaining a bar license is very complicated and challenging, and it cannot be guaranteed whether one will get this License or not. However, the UP Government tried to simplify the process of obtaining a Bar License in UP by introducing new rules under the provision of Uttar Pradesh Excise (Grant of Bar License) Rules, 2020.

As per these new rules, the provision of granting a License on the recommendation of a committee that is headed by the divisional commissioner has been scrapped, and the Excise commissioner is now delegated with authority to grant Bar Licenses on the recommendation of the committee in each district headed by the district magistrate. It has reduced the number of processes by simplifying the process and providing decentralisation rules for approval.

These new rules are going to consume less time in obtaining a Bar License. According to new rules, the Bar License will be granted to airport lounges, special trains and domestic and international cruises. The bar and club that are licensed will be geo-tagged.

In case the bar is located in a mall or any commercial complex, then the washroom and parking facilities of such a mall or commercial complex will be deemed to be facilities of the bar.

In September 2021, the UP-State Excise Department announced new rules for obtaining a home Bar License for those who wish to open a bar in their own home only.

Major Amendments in Context to Bar License in UP

The UP Government, in May 2022, gave approval to its Excise Department to relax the norms and rules for setting up and operating bars in the state. The Department has proposed the following three major amendments to the existing policy in context to bar license in UP:

• Entrepreneurs and businessmen who are willing to open a bar in UP must have 200 square metres of space. The Department brings the minimum area required for opening a bar to 100 square metres.
• The mandate to seek a commercial license from urban local bodies has been done away with. Also, the completion certificate from the local development or housing body has been scrapped. The Department will now accept the approved plan of the building or complex where the bar is to be opened.
• The Department gives four types of bar licenses in the state, including FL6 and FL6A to hotels, FL7 to restaurants, pubs and bars and FL7C to operate bars in clubs.

Objectives of this UP’s Excise Policy are as follows:

• To regulate the legitimate sale of intoxicants, Liquor or narcotics.
• To help in promoting the development of alcohol or molasses-based industries.
• To earn maximum revenue through the controlled and legitimate sale of intoxicants, alcohol or narcotics for the welfare of the state.
• To prevent the illicit sale of intoxicants, alcohol or narcotics.
• To prevent crimes related to intoxicants, alcohol or narcotics.

Benefits of Bar License in UP

Following are the benefits enjoyed by the holder of a Bar License in UP:

1. Compliance with relevant state excise authorities

A bar with such a license complies with UP state excise laws and rules. And so, the excise duties are paid on the Liquor that is brought within the appropriate state under the prescribed laws.

2. Improvement of Reputation

Any restaurant and bar that obtains such a bar license in UP earn a reputation amongst the people in UP.

3. Raise 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.

Pre-requisites for Bar Licensing in UP

Pre-requisites for opening and establishing a bar in the State of Uttar Pradesh required are as follows:

1. Unique Name and logo

The restaurant or bar must have a unique name and logo design that others have not used.

2. Available space

There should be enough space where customers can sit and enjoy their drinks at the bar. One can also set up a partial service bar where bartenders can make drinks and waiters can carry them to the customers. For setting up a bar, appropriate planning and interior design are essential.

3. Appropriate Equipment

Arrangement of appropriate equipment to assist the process going more smoothly. It should include the following equipment:

• Refrigerator
• Ice bins
• Coolers
• Wine racks
• Freezers and ice makers
• Ranges (Gas/Flat)
• Grills and Induction
• Microwaves
• Food processors
• Blenders and Mixers
• Food prep surface
• Food prep equipment like knives, cutting boards, pots and pans
• Mixing bowls, storage containers and shelves
• Sinks and dishwashers
• Utensils, napkins, apron and linen
• Keg equipment
• Underbar sink
• Other bar accessories and amenities

Additionally, the floor should not be slippery and safe for the staff and bartenders.

4. Creating the Ambiance

The bar should be illuminating enough and appealing to be more customer friendly. There should be a low lighting bar should, and it should not be too gloomy. Furniture should be artistic or classy as it is essential for setting a suitable environment for the customers.

5. Recruiting the best staff and Bartender

One should hire proper individuals to make the best use of resources and create revenue. The restaurant management and bartenders should be of top quality. Other staff includes the head chef, Chef De Partie, Commis level Chefs, helpers, waiters, captain and bouncers. All the staff hired must be experienced and skilled at their work. The staff should be well dressed as it leaves a good impression on the customers.

6. Making use of Appropriate Technology

Investment should be made in a quality POS system to assist in running bar operations smoothly. To assure a rapid service, one should establish the greatest technology at their bar.

7. Liquor Inventory Management

Stock management should be there to help limit potential losses.

8. Licenses

There is a variety of licenses required to open a bar in UP, such as:

• Shop Establishment License
• Eating House License
• Liquor License
• FSSAI License
• Fire Safety Certificate
• GST Registration
• Music License
• Health and Trade License
• Lift clearance
• Certificate of Environment Clearance
• Signage License

9. Marketing

Marketing of the bar is essential to enhance profits and engage more customers. The bar should include online services also. There should be a well-designed and laminated menu for each table.

Types of Bar License in UP

The following are different types of bar licenses:

1. Restaurant Licenses

This type of License is required to sell beer, wine or any other type of alcohol at a restaurant.

2. Tavern License

To make more revenue, one can sell food and alcohol both at his or her premises and for opening such a place, this License is required.

3. Beer and Wine License

This License is for those places that do not sell hard Liquor and only sell soft or wild Liquor such as wine or beer.

4. Brewpub Liquor License

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

Documents Required for Bar License in UP

Following are the Documents required for obtaining Bar License in UP:

• Business registration or incorporation certificate
• Identity and address Proof of the applicant
• Address proof of the business premises
• Health and Trade License
• Eating house license
• Approved plan of building or complex where the bar is to be opened
• GST Registration
• No Objection Certificate (NOC) from the State Fire Department
• Affidavit stating that the applicant has no history of committing any form of crime and no outstanding dues
• FSSAI License
• Shop Establishment License
• Liquor License
• Music License
• Lift clearance
• Certificate of Environment Clearance from UP State Pollution Control Board
• Signage License

Procedure for obtaining Bar License in UP

The Bar License in UP is granted by Excise Commissioner or an Officer authorised by him, and such an officer should not be below the rank of Joint Excise Commissioner. Steps to follow while applying for the Bar License in UP are as follows:

• The first thing done by the applicant is to decide on the right format for the bar, and there are the following six types of bar formats in UP:

1. Night Club
2. Pub
3. Brewpub or beer bar
4. Sports bar
5. Lounge
6. Tapas bar

• Then fill out the one-time application form as prescribed by the Excise Department of the State of Uttar Pradesh in the Uttar Pradesh Excise (Grant of Bar License) Rules, 2020.
• Submit all required Documents along with the Aadhar Card, Ration Card, Voter ID, etc.
• After submitting the Application with all the required Documents, the applicant pays the requisite fee and security amount.
• The UP-Excise Department grants the License after verifying the Documents and the Application submitted by the applicant.

Cost of Bar License in UP

The cost of a bar license varies across states, with Tier 1 states charging up to ₹10 lakhs. However, the combined fee for obtaining a bar license in UP is approximately ₹5 lakhs. This reflects regional differences in licensing fees and regulatory requirements.

Timeline for Bar License in UP

The licensing authority verifies that all rules are followed during the first review and approval phase, which typically takes two months (60 days) to complete for bar license applicants in Uttar Pradesh. The license may not be received for another 30 days or more after this review period, as processing times can differ based on local procedures.

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