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Sakshi Srivastava
| Updated: 22 Aug, 2020 | Category: FSSAI License

How to set up a café business in India?

Cafe-Business-in-India

Are you planning to start a Café business in India? However, you should know that starting a café business is no runaway. You are required to think sessions on choosing the right location, hiring the right employees, and marketing the restaurant just right. To open a cafe, one must fulfil with all the Licenses and certificates. To open a marketing food establishment or a cafe, it is essential to obtain Licenses and certificates. In the article, we will discuss the important license to open a café business in India.

What are the Licenses required to open a Café Buisiness?

Following are the Licenses Required to Open a Café business:-

Café Buisiness

FSSAI License

According to Food Safety and Standards Act, it is obligatory for all the cafeterias in India to obtain an Food Business Operator license from the Food Safety and Standards Authority of India FSSAI to guarantee the quality of food for the benefit of public health.

For finding the food & safety license, a claim is required to be filed under the FSSAI.

The following are the necessities to be fulfilled for the procurement of the FSSAI license. They are as follows-

  • Display of certificates or license;
  • Regular health status inspection of food managers;
  • Knowledge of food handling observesation;
  • Food safety message depends on the type of food being sold;
  • Special instructions on the product.

Eating House License

It is attained from Licensing Police Commissioner of the city; and for this, one needs to visit the site of Licensing Police Commissioner’s office.

Health License/Trade License

Sometimes health license can also be called as Trade License. It is mandatory to acquire from the local authorities of the area where you wish to start your cafe.

Read our article:New Regulations of FSSAI Prohibit Plastic, Newspaper Packaging of Food

Grant of FSSAI Registration Certificate for Café Business

The application is compulsory to be filed for the FSSAI Registration for an eating-house in the arranged format along with the following documents required-

  • Essential documents compulsory to prove the legal residence of the place, and in the case of rental, NOC is mandatory from the landowner in the affidavit or stamp paper duly attested;
  • Site plan with details of the size of the place;
  • 2 postcard size photo of the place telling its use as a café;
  • Photocopy of trade license and fee receipt of related documents;
  • Residence proof like as Driving License, Aadhar, Voter card, and passport;
  • Duly Attested affidavit on stamp paper;
  • Fire Department NOC, in the case of seating capacity, is more than 50;
  • Undertaking concerning prevailing facilities like music and live performance, dance floor, Bars and disco or etc;
  • Undertaking regarding the connection of CCTV Cameras with footage facility of 30 days.
FSSAI Registration Certificate for Café Business

Fire Department NOC

It should be noted that all the agreements have been of all the fire safety procedures. It must be done previously submitting the form to the chief fire officer for the procurement of NOC. In case there is a postponement in resounding out the inspection then one can contact the chief fire officer or commissioner.

Pollution Certificate Required

The license should be provided by the DPCC (Delhi Pollution Control Committee).

Music License Required

One desires to acquire a license for playing recorded music or video in any restaurant.

Trademark Required

It is crucial to register trademark because it stops others from using the same logo or trademark.

Certificate of Environmental Clearance (CEC)

One needs to acquire it from the Ministry of Environment and Forests after submitting the survey for environmental assessment[1].

Insurance-

  • Public Liability;
  • Product Liability;
  • Fire Policy;
  • Building and Asset.

Shops and Establishment Act License

It is mandatory to register a restaurant under the Shops and Establishment Act License.

Signage license

It is required to obtain this license from the local civil authorities. You are required to marketplace your creation well that will make sure that thecafé will helps you gather the maximum profit from café. However, if you are willing to sell thecafé also finished logo, pictures, posters, and signs you are mandatory to acquire a legal certification, which is the signage certificate.

GST Registration

GST Registration is compulsory to the café whose annual turnover exceeds more than INR 20 lakh yearly or INR 10 lakh in case of annual cumulative.GST plays a dynamic role in the Indian economy. Since the GST, there is an growth in the demands of goods and services tax. Nowadays there is less tax agreement. The process of tax has become more translucent for all the customers and people of the country. It is accountable for the control and circulation of black money in the Indian market. GST was implemented from the year 2017. As because of GST, the Elimination of bundled indirect taxes like VAT has taken place. There is no concept of VAT now but GST in the whole country.

Liquor License

Liquor is an alcoholic drink. So, if any restaurant has alcohol in its menu, then they should have the liquor license. Liquor license is given by the Excise Department of the particular state. It is a kind of certificate that allows or permits the restaurant to sell liquor. Assume a restaurant that are selling liquors does not have this license, it is a case of malpractice and illegal trade of alcohol in India. To apply for the license, one should be the citizen of India, and there are more circumstances to be fulfilled as provided by the Excise Department of that specific state.

Conclusion

Licensing is essential to open a café business. It helps in maintaining health standards and also to have a separate legal identity. It adds to the goodwill of the café as it attracts customers to a place which is safer and provides good quality food. It will bring customer satisfaction. According to FSSAI officials, restaurants and cafes operating without FBO license will be penalized up to INR 5 lakhs and imprisonment up to six months.

Our Corpbiz group will be at your disposal if you seek expert advice on any aspect related to FSSAI Registration with complete compliance. We will help you guarantee full compliance concerning all the requirements based on your anticipated activities, ensuring the productive and well-timed completion of your expectation.

Read our article:FSSAI License Requirement for Export of Food Products from India

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Sakshi Srivastava

Sakshi has pursued B.B.A.LL.B.(IPR Hons.). She is an avid reader and is keen to gather and share her knowledge on the subjects relating to IPR, Company Law and GST. Priorly she has worked as a legal researcher and vide her articles she aims at improving the core knowledge of the subjects to the masses.

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