Bar License

Are you planning to open a bar and restaurant business in India? If yes, then you must be aware that getting the proper licenses and permits is a make-or-break factor in starting such an establishment. One of the essential licenses that business owners need to obtain is the bar license. Without this license, operating a bar and restaurant that serves liquor can lead to severe legal repercussions. In this article, we will delve into the process of obtaining a bar license in India and the permits required to run a bar and restaurant smoothly. So, keep reading to learn more about the necessary documentation and compliance measures that entrepreneurs must undertake.

I. Introduction

A. Definition of Bar & Restaurant License in India

A bar and restaurant license in India is an essential legal permit that allows entrepreneurs to sell liquor products legally. This license is mandatory for all establishments that wish to serve alcohol in India. The license requirements and procedures might vary from state to state, and it involves extensive documentation and compliance measures like licenses and registrations. These documents include proof of address of the business premises, completion certificate of the restaurant or bar, Eating house license registration from the District Commissioner of Police, NOC from the state fire department, among others. Moreover, business owners need to acquire a Food Safety and Standards Authority of India (FSSAI) license as well. This license certifies that the establishment meets the required standards of food security and safety protocols. The cost of obtaining a bar & restaurant license in India varies depending on the state, and it involves an annual licensing fee in some regions, processing fees in others, and an additional fee for each spirit brand or type. 

B. Need for Bar & Restaurant License in India

If you’re planning to start a bar and restaurant in India, it’s essential to obtain the necessary licenses and registrations to operate legally. While starting a restaurant requires thoughtful planning, setting up a bar is even more complicated and requires extensive documentation and compliance measures. Without a bar and restaurant license, you cannot sell liquor products legally, and running a bar without this license can lead to severe penalties, shutdowns, and legal troubles.
To apply for a bar license in India, entrepreneurs must contact their local excise commissioner and research local excise laws to ensure compliance. Business owners need to submit various documents, including address proof of the business premises, a completion certificate of the restaurant or bar, eating house license registration from the District Commissioner of Police, NOC from the state fire department, and an affidavit ensuring the applicant has no criminal history or outstanding dues. In some states, there is an annual licensing fee or a processing fee, and an additional fee for each spirit brand or type. 

Getting the bar and restaurant license is a time-consuming and complicated process, but it’s necessary for legal and financial purposes. It’s advisable to take the help of a legal expert or third-party service providers to obtain the license and ensure compliance with all regulations. 

II. Documents Required for Bar & Restaurant License in India

A. Proof of address of the business premises

When applying for a bar and restaurant license in India, one of the important requirements is proof of address of the business premises. This means that you need to have a document that verifies the location of your establishment. It can be either a rental agreement, electricity bill, or property tax receipt. This proof of address is crucial for the licensing authorities to ensure that the establishment is located in an appropriate place and is complying with zoning laws. Without this document, your application for a license can get rejected. Hence, it is important to ensure that you have the proper proof of address in place before applying for the license. Additionally, it is recommended to keep a copy of this document along with other necessary licenses and permits for future reference. 

B. Completion certificate of the restaurant or bar

One crucial document that restaurant and bar owners need to obtain to apply for a bar license in India is the completion certificate of their establishment. This certificate acts as proof that the restaurant or bar is built according to legal specifications and meets all safety requirements. To obtain a completion certificate, the building owner must submit plans and drawings of the proposed establishment to the local municipal authority and obtain their approval. After the construction of the restaurant or bar is completed, the municipal authority will conduct a thorough inspection to ensure that the establishment is built as per the approved plans. If the establishment meets all requirements, the authorities will issue a completion certificate. This certificate is essential for obtaining a bar license in India, and failing to provide it can lead to the rejection of the license application. Along with the completion certificate, bar and restaurant owners need to obtain other necessary documents and permits to apply for a bar license in India. 

C. Eating house license registration from the District Commissioner of Police

To legally operate a food business in India, an eating house license is a mandatory requirement. Eating house licenses are regulated by the Delhi Police Act and must be obtained from the district commissioner of police. The license application process involves filling up the application form and submitting it with a comprehensive list of documents, including proof of address of the business premises, completion certificate of the restaurant or bar, NOC from the state fire department, and an affidavit ensuring the applicant has no outstanding dues or criminal history. Additionally, annual licensing fees and processing fees may apply in certain states, along with additional fees for each spirit brand or type. Once the application is submitted, it needs to be verified by the additional commissioner of police and the examination of all the documents. The license is generally valid for three years, and the renewal process is similar to that of applying for a new license. It is a crucial step for any food business to obtain this license before operating to avoid any penalties from the state police department. 

D. NOC from the state fire department

Sec a NOC from the state fire department is an essential step towards obtaining a bar and restaurant license in India. This certificate ensures that the building meets all fire safety requirements imposed by the law. The process of securing it involves liaising with the concerned state authorities and submitting the required documents for Fire Safety NOC, which include proof of address of the business premises, completion certificate of the restaurant or bar, and Eating house license registration from the District Commissioner of Police. Additionally, an affidavit ensuring the applicant has no outstanding dues or criminal history is also required. In some states, an annual licensing fee, processing fee, and additional fee for each spirit brand or type must be paid. After obtaining a NOC, the applicant must proceed to obtain a business license and employee identification number, among other requirements. The application for a bar and restaurant license must be filed, verified, and attached with all necessary documents before submission to the concerned authority. 

E. Affidavit ensuring the applicant has no outstanding dues or criminal history

When applying for a Bar & Restaurant License in India, one of the necessary documents to attach is an affidavit ensuring that the applicant has no outstanding dues or criminal history. This affidavit is crucial as it provides assurance to the concerned authority that the applicant is trustworthy and does not have any legal issues that may hinder their ability to run a bar or restaurant successfully.

The affidavit serves as a legal document that states that the applicant has paid all their dues and is not involved in any criminal activities. It acts as a declaration under oath and carries significant weight in the application process. 

To ensure that the affidavit is valid, the applicant must provide all the necessary documents to support it fully. This includes proof of payment of all taxes and license fees. Failure to provide all the required documents may lead to rejection of the application.

It is essential to note that the affidavit is not just a formality. The concerned authorities conduct thorough checks to ensure that the information provided is correct. Any discrepancies may result in the application being rejected or, worse still, legal action being taken against the applicant. Therefore, it is crucial to be honest and transparent while providing the information needed for the affidavit. 

III. Cost of Bar & Restaurant License in India

A. Annual licensing fee in certain states

In certain states of India, business owners must pay an annual licensing fee to obtain a bar and restaurant license. The fees vary depending on the location and tier of the city. For instance, top-tier cities charge an annual licensing fee of ₹10 lakhs, whereas tier 4 cities charge ₹2.5 lakhs. These fees for operating a bar and restaurant may seem high but are necessary to stay compliant and legally sell liquor products. In addition to the annual licensing fee, business owners must pay a processing fee after submitting their documents. They must also pay an additional fee of ₹50,000 for each spirit brand or type they wish to sell in their restaurant. Entrepreneurs should also consider legal fees such as hiring a lawyer or third-party legal service provider to help them obtain necessary licenses and meet compliance measures. In this way, business owners can maintain a legally compliant establishment and generate revenue from food and liquor sales. 

B. Processing fee in some states

In some states of India, a processing fee is required to be paid along with the application for a bar and restaurant license. This fee is used to cover the administrative and regulatory costs of processing the application. The amount of the fee may vary depending on the state and the type of license being applied for.
It is important to note that this fee is in addition to any annual licensing fees that may be applicable. In some cases, there may also be an additional fee for each spirit brand or type of alcohol being served.

To ensure that the application process goes smoothly, it is recommended that applicants carefully review the requirements for obtaining a bar and restaurant license in their state and prepare all necessary documentation in advance. This includes proof of address for the business premises, completion certificate of the restaurant or bar, eating house license registration from the District Commissioner of Police, NOC from the state fire department, and an affidavit ensuring that the applicant has no outstanding dues or criminal history.

By properly completing the application and paying all required fees, applicants can successfully obtain a bar and restaurant license in India and start serving their customers. 

C. Additional fee for each spirit brand or type

Apart from the processing and licensing fee, obtaining a bar and restaurant license in India also involves an additional fee for each spirit brand or type, depending on the state’s regulations. The fee differs from one state to another and can range from INR 5000 to INR 1,00,000 per brand or type. For instance, in Maharashtra, the additional fee is INR 10,000 per type of spirit, while in Uttar Pradesh, the fee can even reach INR 1,00,000 per type of spirit. The additional fee structure is put in place to prevent the over-consumption and misuse of alcohol in the state. It also helps the government to generate revenue. Therefore, it is crucial to research the additional fee structure while applying for a bar and restaurant license in any state of India, to avoid any potential penalties and consequences of non-compliance with the law. 

VI. Licenses Required to Open a Bar in India

A. Business License

Getting a business license is a must for any entrepreneur who plans to start a new venture. In India, business owners can obtain a license from the Ministry of Corporate Affairs (MCA). The license serves as legal validation of the establishment and qualifies the business owner to conduct business in India. Business owners must have an Employee Identification Number (EIN) to file taxes and apply for various government licenses and permits. In addition, a business license is required for obtaining loans and grants from financial institutions and other business partners. Although obtaining a business license may seem like a time-consuming process, it is essential for any business that wants to thrive and grow. The process of obtaining a business license involves filing an application form and verifying necessary documents before submission to the appropriate authority. Costs for the business license vary depending on the state where the business is located and the type of business license needed. Business owners must also pay an annual licensing fee in some states and processing fees in others.

B. Employee Identification Number

Obtaining an Employee Identification Number (EIN) is an important step for any business in the United States. It is a nine-digit number assigned by the Internal Revenue Service (IRS) to identify taxpayers who are required to file business tax returns. Sole proprietors who do not have employees, who do not have a retirement plan for themselves, and who are not required to pay federal excise taxes in connection with their business can generally use their social security number as their EIN. However, all other business entities are required to obtain an EIN by filing Form SS-4 with the IRS. Independent contractors doing commercial or residential building construction or improvements may also need an EIN to be considered as employees for workers’ compensation purposes. In addition, a Minnesota unemployment insurance employer account number is required for all business entities other than sole proprietors, single member limited liability companies without employees, and partnerships without employees or corporations and limited liability companies with no employees other than owner/officers with 25% or more ownership share. 

VII. Procedure for Applying for a Bar & Restaurant License in India

A. Filing an application form

Filing an application form is a crucial step in obtaining a bar and restaurant license in India. Entrepreneurs must obtain and fill out the appropriate application form from the State Excise Department’s official website. The application form needs to be filled with the relevant details and submitted along with the necessary fee to the concerned authority. The supporting documents required may vary based on the type of license being applied for, but some documents such as identity proof, address proof, and certificates of approval from various government bodies, need to be submitted along with the application form. Once the application and supporting documents have been submitted, the authorities will verify and assess the application. The time frame for processing the application and granting the license varies depending on the state, but typically takes approximately 60 days. It is important for entrepreneurs to take the necessary time to correctly fill out the application form and ensure all necessary documents are submitted to avoid any delay or rejection of their application. 

B. Verifying and attaching necessary documents

Verifying and attaching necessary documents is a crucial step in obtaining a bar and restaurant license in India. The following list comprises the documents required for the application:
1. Proof of address of the business premises
2. Completion certificate of the restaurant or bar
3. Eating house license registration from the District Commissioner of Police
4. NOC from the state fire department
5. Affidavit ensuring the applicant has no outstanding dues or criminal history

Applicants need to verify the correctness of these documents before submitting them to the concerned authority. Moreover, the documents must be attached in the format specified in the application form. Incomplete or inaccurate documents may lead to rejection of the application.

Therefore, applicants must double-check and make sure all the necessary documents are attached and verified before submission. Depending on the state, applicants may also need to pay an annual licensing fee, processing fee, and additional fee for each spirit brand or type for the license. Once the necessary documents are verified and attached, applicants can submit their application to the concerned authority and await the grant of the bar and restaurant license. 

C. Submission of application to concerned authority

After completing the application form and attaching all the necessary documents, the next step is to submit the application to the concerned authority. This authority varies from state to state in India. In some states, the excise department is the concerned authority, while in others, it may be the district police commissioner. The application must be submitted with the applicable fees, which may include an annual licensing fee, processing fee, or additional fees for each type of spirit brand. It is important to check the specific requirements of the state where the bar or restaurant is located to ensure that all necessary fees are paid. Once the application has been submitted, it will be reviewed by the concerned authority and the applicant will be notified if any further steps need to be taken or if the license has been approved. It is important to keep track of any deadlines or follow-up requirements to ensure the license is obtained in a timely manner. 

VIII. Documents required for Bar License in India:

1. Educational certificates such as graduation or post-graduation in law
2. Certificate of enrollment with the State Bar Council
3. Passport-sized photographs
4. Address proof such as Aadhar Card, Voter ID, or Passport
5. Income tax returns and financial statements
6. Police clearance certificate
7. Proof of age
8. Character certificate issued by a reputable individual or organization.

IX. Advantages of Bar License in India:

1. Increases credibility and reputation
2. Allows the holder to practice law independently
3. Provides access to a vast network of legal professionals
4. Enables the licensee to appear in courts of law and represent clients
5. Allows for the establishment of a private practice and associated benefits such as fixed hours, location, and salary.

X. Disadvantages of Bar License in India:

1. Requires a significant investment of time, effort and money
2. High level of competition and limited opportunities for employment
3. Constantly evolving legal environment requires continuous upskilling
4. Potentially significant legal and ethical responsibility
5. Lack of transparency and accountability in the legal profession in India.

XI. Process of getting Bar License in India:

1. Obtain a Law degree from a recognized university/college.
2. Register and obtain a Certificate of Enrollment from the state bar council.
3. Complete a mandatory internship with an established lawyer for a specified duration.
4. Pass the All India Bar Exam.
5. Apply to the respective state bar council for the bar license by submitting the required documents and undertaking a personal appearance.

XII. Types of Bar License in India:

1. Permanent License: Allows the holder to practice law throughout India.
2. Provisional License: Allows the holder to practice law for a limited period in a specified state or region.
3. Restricted License: Allows the holder to practice law within specific practice areas or court jurisdictions.