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How to Get Hookah Lounge License in India? – Process & Fees

calendar24 Feb, 2020
timeReading Time: 4 Minutes
Hookah lounge license

Hookah Lounge plus restaurant business is a new way of investment in India. As the generation these days wants an environment of peace along with little music. Hookah lounges are mainly famous among college students. In this topic, we will discuss the trends of an opening Hookah lounge, Process to obtain Hookah license, and what is the Hookah lounge license fees in India?

FSSAI State license process is also required to be done before taking the Hookah Lounge License.

Before opening a Hookah Lounge below mentioned points are required to be kept in mind-

  • The ambience of the lounge shall be very relaxing, and also the owner before opening a Hookah bar shall choose different flavours and variety;
  • The Hookah Lounge shall be spacious as compared to Restaurant.
  • Proper Camera facility, i.e. CCTV camera.
  • There shall be no educational institute, school, hospital or worship place within 500 meters.
  • Minority shall not be served.
  • The owners are required to obtain the NOC from the neighbours.
  • The Hookah can only be served if the investor has opened a restaurant, Hookah bar can’t be opened without the Restaurant (food items).

Costing and Profit Analysis of Hookah Lounge

The addiction of Hookah these days is a money-making option for the owners dealing in Food business, i.e. Restaurant, club and hotel owners. The cost of Hookah Bar license cost varies from state to state. The cost, i.e. (the development cost and License cost) depends upon the place where the Hookah is served.

The permit of Liquor License Cost governs the Hookah License Cost as a fix by the Government. The owner recovers the cost which he has invested in building the hookah bar and paying a licensing cost, by earning approximately 300% profit in the very first year of commencement of the parlour.

How to make the Hookah Lounge business profitable?

To make the Hookah business more profitable. The owner should create incentives. As the Hookah lounge is a niche form of enjoyment, Customer frequently visits such place often to those hookah bars having unique atmospheres. Additionally, other strategies to make this business profitable to provide discounts, rewarding repetitive customers, and by offering good food and drinks.

Read our article:Who needs FSSAI Registration? Is FSSAI Registration Mandatory?

What steps and Licenses are required to obtained before obtaining the Hookah License?

The First step that is required before obtaining a Hookah license is to-

Steps obtaining the Hookah License

Register a Business

The first step that is required for obtaining the Hookah license is to register a business by incorporating the Private /Public Limited Company, Limited Liability Partnership or by establishing a Partnership business or Sole Proprietorship.

Additionally, after registering the business below mentioned licenses are required for the smooth functioning of the Hookah License-

Trade License

Before obtaining a Hookah License, it is important to get a Trade License from the Licensing department of the Municipal Corporation[1]. It allows the holder of the license to start a particular trade or business. Trade License helps in balancing the society by adopting the safety measures.

 Shop and Establishment License

Shop and Establishment License is issued to protect the working condition and secure the rights of the employees. The license is issued by the State Chief Inspector of the Labor Department

Fire safety License

Hookah lounge requires various kinds of flammable material; also the premises are open for public visits. For the safety of the public, A fire safety license is mandatory for the Hookahlounge from the fire department.

Music License

Phonographic performance limited or Indian performing right society provides Music license to play the Music in the Hookah Bar.

FSSAI State License

FSSAI State license process is required to be done by every businessperson dealing in the food business. For food state license process following criteria is required to meet-

  • An Annual Turnover between 12 lakh and 20 crores.
  • All grain, cereal and pulses milling units irrespective of turnover

FSSAI State license process gives a Hookah lounge a competitive advantage as it maintains the trust of the customers that the food being provided in the lounge is hygienic and good quality food as compared to those outlets not having the FSSAI state license. It provides a repetitive and loyal customer base.

GST Registration

For every businessman carrying out a taxable supply of goods and services and whose turnover exceeds the threshold limit are required to obtain GST Registration

Staff License and Labor Registration

Staff License and Labor Registration is mandatory for hiring the staff depending on the number and category of staff.

License from Police Commissioner

For running a Hookah Lounge License, it is also mandatory to obtain a license from a police commissioner. However, the license can be granted on their discretion after the fulfilment of the certain prescribed condition.

Note: Apart from obtaining the license, before commencing the business activity every business entity needs a Pollution certificate by the State Pollution Control Boards.

Hookah Lounge License Fees in India

Hookah Lounge License Fees vary from state to state. Hookah Lounge License Fees include fees for Business Registration, Trade License, Staff registration in Labour Court, Shop and Establishment License, FSSAI state License, GST registration, Fire safety License, and Music License. The license of the Hookah lounge could be named L1, L2 and the list goes on to L19.

Conclusion

Hookah lounge license is a lengthy process as it requires various other licenses like Food State License Process, Trade License, Shop and establishment License, and many other licenses. Hookah lounge business has become a very popular and revenue-generating business.

Read our article:All you need to know About FSSAI State License

Priyanka Bajpayee

A Company Secretary together with PG in international Business, she has gained significant experience as legal content writer. She has keen interest in doing research and writing on legal and financial subject matters. She also holds work experience in legal compliances.

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