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Unlock 6 Major Licenses Required for Restaurants in India


Unveiling the major licenses for Restaurants in India 

Are you a business owner, aiming to establish a restaurant business in India? 
If so, you must have a sneak peek into the world of licenses that comes with it!

From the idea of finger-licking food to savoring the very first bite of it, one can imagine a drooling sensation, especially when it is hot-cooked and served on a platter. A tempting idea?
I hope it gave you the food frenzy and hype that you needed. 

Alas! Your edible emporium won’t be worth the spotlight, unless the food that it serves is healthy and in compliance with the laws. To thrive even better, your business has to be as irresistible as the dishes served by you in the restaurants. So, buck up, and ace the game of licenses, by being on a journey from mission to permission. 

Read the blog to help yourself with the list of licenses required for restaurants in India.

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6 Major Licenses Required for Restaurants in India

The six major licenses required for Restaurants in India are as follows-

FSSAI License 

From scrolling food apps to the joy of savouring lip-smacking food, we have come a long way. Not only do we relish the corners of the food packets, but we also peek through the nutritional information displayed. While doing so, we must have seen something as an FSSAI Label with a license number.

This symbol is mainly looked at, as a 14-digit license number given to the Food Business Operators, to ensure compliance with the rules as per the FSS Act. 

To obtain this, a Food license for a restaurant, or business operator must apply for the FSSAI License on the FoSCoS website, through the submission of the registration form ( Form-A or Form-B). For instance, the registration form can even be submitted to the required authority of the state. 

Now, with technology disguised as a blessing, even the food aggregators apps have the displayed FSSAI mark, representing the labels offered to the restaurants.     Therefore, to have a healthy feed, FSSAI License for a restaurant is all you need. 

Why need an FSSAI License?

Having an FSSAI License for your business operations adds credibility to the restaurant’s reputation. It ensures that you demonstrate a commitment to providing hygienic and safe food to the customers. 
The license becomes significant, as it prioritizes the health of the customers, ensuring that the consumed food is safe and meets the standards. 

Eating House License 

Like the name itself, we can familiarize ourselves with the function it may be performing. But wait, this is not it. To operate a business is to understand the legalities that come with it. In the case of the restaurant, one cannot go without an eating house in the first place. 

An eating house license is a crucial requirement for the food businesses serving the general public. It proves that the kind of supplied food or drink is fit for consumption legally. 

It is of utmost importance and is usually required or asked for, during the commencement of food business operations, along with the series of other licenses. Unsurprisingly, this license is a requisite as per the Delhi Police Act, which applies to the City/State Police Headquarters and Police Commissioner. The respective authority will issue the license, once the verification of the documents has been completed. 

Why need an Eating House License?

The Eating House License is considered significant, due to the following reasons, which are-

The eating house license will encourage you to establish favourable reputation while encouraging you to grow your business in rightful ways. 
The eating house license enables you to seek bank loans and funding, imbued with various growth opportunities. 

Shop & Establishment License 

While dwelling upon the concept of the restaurant, the individuals are tempted by the image of the food in their minds. However, for this venture to succeed, it is not just about serving mouth-watering food, it must be safe for consumption and meet the standards and regulations. 

The Shop and Establishment License is a legal document that grants permission to a business to operate within a specific jurisdiction. It is mandatory for all businesses, including shops, offices, restaurants, and other commercial establishments.

Now, you might be wondering why is it so essential to have this license.
Well, it is because it protects your business, which is operating within the legal framework of the government. It shields your business from potential legal issues and fosters trustworthiness as well as credibility amongst your customers.  

Accordingly, the Shop and Establishment license acts as a testament to ensuring that the food business is carried out in a safe and regulated manner, ensuring compliance. 

Why need a Shop & Establishment License?

The shop and establishment license is considered essential due to the following reasons, which include-

Shop and establishment licenses make your business a recipient of government schemes and subsidies that are available to businesses that have valid shop and establishment licenses.
With Shop and Establishment License, not only does it lead to business expansion, but even solidifies collaborations with other companies. To facilitate the same, the investors or potential partners seek proof, before conducting business dealings. 

Health-Trade License 

To live a clean bill of health, we must understand that Health cannot be bargained or compromised in any way. It is a way of life, that has to be understood and implemented rightfully. In childhood, we used to dwell upon how we had to be fit as a fiddle to carry out daily activities. Similarly, for a restaurant business to function well, we must ensure legal compliance for food businesses in the trading of goods and services, especially to ensure the health of people at large. 

No wonder, a restaurant business comes with numerous licenses, out of which a Health trade license is one of them. The Municipal Corporation issues this license, which kickstarts your food business and gives the push that it needs. Especially in instances for it is to function legally. 

Accordingly, the business owner relegated to goods or services will be able to impact the public on a much larger scale and may require a license. For instance, it mentions eating houses, ice-making units, milk sellers, pharmaceutical businesses and restaurants. Therefore, it is significant that you obtain the Health trade license from the rightful sources to remain compliant. 

Why need a Health Trade License?

The health-trade license is significant for the following reasons, which mean-
One of the main reasons why one should have a health trade license is to establish the credibility and legitimacy of their business.
With a health trade license, you ensure that your business meets the essential regulations or requirements.
Obtaining the health trade license is a prerequisite for accessing the funding or forging partnerships with other organizations. 

Liquor License 

In bars as well as food restaurants, we understand that liquor is an inevitable choice for the guests arriving there. Because of this, the demand is non-dying and will continue to elevate, irrespective of the seasons that may come or go.

As a restaurant owner, if you wish to serve liquor in your restaurant, you must have a license granted by the State Excise Department to those who want to sell off alcoholic drinks/beverages at a particular place. It contributes to the profit-making, as it has an increased demand for liquor. 

While doing so, make sure that you avail these licenses from the right source. 

Why need a Liquor License?

The liquor License is considered significant due to the following reasons, which are as follows-
A license such as this makes your business more compliant, encouraging you to avoid any penalties on the same. In short, it prevents any legal harm 
Licenses make your business a more customer-friendly and safe option to rely on. 

Environmental Clearance 

Planning to begin a food business?
Do not let environmental clearance restrict you in any way. It is indeed an exciting alternative to showcase the commitment towards the concert of sustainability and responsible entrepreneurship.  By seeking permission from the authorities and minimizing the negative environmental impact, you will not only be doing your part for the planet but also giving your business a competitive edge in today’s eco-conscious market.  

So, make sure you embrace this idea and launch your delicious or sustainable venture. Additionally, it proves to be a safety net for consumers, while promoting conscious efforts to preserve the environment. 

As restaurants focus on prioritizing the safety of customers, it is vital to pay heed to their overall well-being as well. To do so, they must seek a Certificate of Environmental Clearance from the government, which confirms that they comply with the environmental regulations and do not contribute to pollution. Without this certification, restaurants are not allowed to operate or exist legally. 

Therefore, it is a must-have for restaurants to have environmental clearance in India. 

Why need an Environmental Clearance?

This is considered significant due to the following reasons, which are as follows-

The environmental clearance for a restaurant ensures that it boosts environmental performance while acting in compliance with the said rules and regulations.  
Having this license acts as an effort towards pollution prevention, while even contributing to the conservation of the resources. 


After skimming through the list of the required licenses, you must not forget their importance, before establishing restaurants in India. These licenses you obtain are as crucial as the food choices that you make to be healthy and mindful. While establishing your restaurant, make sure you abide by the legalities and remain compliant. Without these permissions, your restaurants are as lifeless as a statue. So, let us make it more lively and joyful, by existing and serving individuals with the best choices. 

This portion of the site is for informational purposes only. The content is not legal advice. The statements and opinions are the expression of author, not corpseed, and have not been evaluated by corpseed for accuracy, completeness, or changes in the law.


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Hansika Bhardwaj is a versatile writer, editor and poet.  She is a graduate of the University of Delhi with a specialisation in English Literature. As a cherry on the cake, she has worked with various companies dealing with various types o...

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