food joint

How To Open a Food Joint in Delhi in 2020? – FSSAI, GST, etc

Are you looking at starting a new food venture with no idea from where to start? This is a complete guide on how to open a food joint in Delhi, including all licenses and paperwork you will need!

It is never easy to start any business, let alone a simple food joint. There are always so many things that need to be taken care of and yet somehow that one important thing manages to escape our attention!

We are here to provide you a checklist to make sure you do not miss out on anything. Along with it, we intend to bring to you all the information there is to know.

Licenses you will need to open a food joint in Delhi:

  1. FSSAI Certificate
  2. GST Registration
  3. Shops and Establishment Certificate
  4. Health and Trade License
  5. Eating House License
  6. Music License
  7. Liquor License
  8. Fire Safety License

Registrations & Licensing

Once you are done with the place, you will need to complete the formal procedure of owning a food business. There are many registrations and licenses that need to be acquired in order to run the place without any legal trouble.

Following is a list and procedures for each of them.

FSSAI License

FSSAI is the Food Safety and Standard Authority of India. It is the government body that looks after the quality of food served and manufactured around the country.

A 14-digit registration number issued by the FSSAI stands proof of the quality of food served at your place. This is the reason why is it mandatory.

Who need an FSSAI License?

If your business falls in any one of the below-listed categories, then you need an FSSAI License:

  1. Procurement, Manufacture, Distribution, Processing, Packaging, and Storage
  2. Hotels, Restaurants
  3. Wholesaler
  4. Food chains, Food sellers and resellers
  5. Dairy and dairy processing
  6. Food importers and exporters
  7. Processors like pickle and dry fruit maker
  8. Raw material suppliers to food businesses
  9. Retailers & establishments who have a retail outlet
  10. Simple transporters who transport items from one place to another
  11. Canteens in corporations, schools, colleges, hospitals or government institutions

Based on the annual turnover of your business, you need to fill the appropriate form. Refer to the below table for full details:

TurnoverRegistration/License
Below 12 LakhsRegistration FORM A
12 – 20 LakhsState License FORM B
Above 20 LakhsCentral License FORM B

Fee Structure

FSSAI License can be obtained for a maximum period of 5 years.

Central (1 year)State (1 year)Registration (1 year)
New ApplicationRs. 7500viewRs. 100
Renewal ApplicationRs. 7500Depends on number of years selected.Rs. 100
License ModificationRs. 7500Fee for one year per license modification.Rs. 100
Duplicate LicenseRs. 75010% of the applicable license fee.Rs. 10

Steps to get FSSAI License in Delhi:

  1. Login here.
  2. Complete their simple questionnaire.
  3. Select your license: Registration, State License, or Central License.
  4. Provide the necessary documents that we have listed below.
  5. Submit your application.

Documents required to apply for an FSSAI License in Delhi:

  1. ID proof and Address proof
  2. Valid email id
  3. Phone number
  4. Affidavit
  5. Declaration of Food Safety Management Plan
  6. Kitchen layout plan
  7. List of food categories
  8. Water testing report from ISI approved facility
  9. No Objection Certificate (NOC) from the owners or the partners
  10. Medical certificates of employees

Click here to register for FSSAI License.

FSSAI Licence Validity

The validity can be anything between 1 – 5 years and it relies on the number of years which is selected by the food administrator. According to the FSSAI rules, your business needs to apply for the renewal of the license 30 days before its expiry.

GST Registrations

The Goods and Services Tax in India was a very debated reform for the Indian economy. It is mandatory for every commercial venture to have their business registered under this.

In order to get yourself registered, sign up at the official portal and be ready with the documents.

Documents required for GST registration: 

  1. Photo of the restaurant owner/proprietor
  2. Picture of managing partner in case of a partnership
  3. Ownership documents of the property like electricity bill, tax receipt/property tax receipt, or registry documents.
  4. If you are on rent, then copy of the rent agreement/lease agreement with electricity bill in the name of the owner.
  5. Electricity bill along with the copy of NOC (No Objection Certificate)
  6. Scanned copy of bank statement/bank passbook or scan copy of canceled cheque containing Name, bank account no., MICR, IFSC, and Branch details including code.

Click here to register for GST.

Health and Trade License

On events of surprise food quality checks and inspections, a health/trade license comes in handy. This license ensures that your outlet stands validated at the hands of the government.

This license can cost anywhere from INR 500 to INR 50,000 depending on the state rules and specific requirements.

The documents required for Health and Trade License:

  1. Ownership proof, Rent Agreement or NOC from landlord
  2. Three copies of the site plan and layout
  3. Indemnity bond for Rs.100
  4. Structural Stability Certificate signed by Structural Engineer
  5. Power and Water Bills
  6. Sewer Connection Proof
  7. Letter from Delhi police
  8. Water Testing Reports
  9. Plan of the Premises
  10. Medical Certificates of Employees
  11. Proof of Property Tax
  12. Lal Dora Certificate, if applicable

Click here to apply for Health and Trade License.

The municipal corporations hold the power to shut down the eateries that do not hold this license.

Eating House License

To open an in-house eatery you need to possess an Eating House License. This license is issued by the Licensing Police Commissioner of the concerned city. The cost of this is minimal.

The documents required for Eating House License are: 

  1. Documents to prove that you own that place, or in the case of tenancy, NOC from the landlord.
  2. Site Plan containing details of the size of Eating House
  3. Photographs of the place
  4. Photocopy of Valid NDMC/MCD/DCB/Airport Authority of India trade license and free receipt.
  5. Residence proof of the applicant
  6. An affidavit on the stamp paper of Rs.10 duly attested by Notary Public
  7. Fire NOC, if the seating capacity of the eating house is 50 or more

Click here to register for Eating House License license.

Shop and Establishment Registration

To run a food business, you must also register yourself under the Shops and Establishment Act. Even if you own a food truck and not a physical shop, it is mandatory.

food truck
Image credits: Marco Verch Professional Photographer and Speaker – Attribution 2.0 Generic (CC BY 2.0)

The cost of registration is relative depending on the size of the venture, location, and the number of employees.

The documents required for Food and Establishment Registration:

  1. Pan Card
  2. Identity Proof
  3. Address proof of the proprietor, partner or the company
  4. Details of the employees

Click here for Shop and Establishment registration.

Once issued, this certificate should be displayed at your outlet at all times. Also, renew it on time before it expires. If you are not confident on how to apply, you can contact a CA.

Music License

Every eatery plays music. It is an inseparable part of food for everyone. In order to enjoy this perk, you need to get a license issued by Phonographic Performance Limited (PPL). 

Click here to get the Music License.

If any commercial eatery is found playing music without the said licensing they will have to face legal actions and penalties.

Liquor License

If you intend to serve liquor at your place, having a liquor license is a must. Without it, you are not allowed to serve alcoholic drinks. 

This license will be obtained by the Local Excise Commissioner. The forms required are available at respective state government websites.

Documents required for Liquor License in Delhi: 

  1. Documentary proof regarding the legal status of the restaurant or the hotel, that is, whether it is a company, partnership firm, or any other type of setup.
  2. Proof for whether the restaurant or the hotel is in legal possession of the plot.
  3. A certificate that validates the completion of the restaurant or the hotel building.
  4. Trade License from the Local authority, that is, MCD/NDMC or such other authorities
  5. Certificate of registration of eating house license issued by the DCP.
  6. Documentary proof regarding applicant being an Income Tax Assessment and Sales Tax-Assessment.
  7. NOC from the state Fire Service

Click here to register for the Liquor License.

After filling the form, take the required documents for inspection by the concerned excise officer. Accordingly, he will fill in his report which will grant you the license in a month’s time.

Fire Safety License:

A fire safety license is another one of those prime licenses that you need to acquire for your food joint. Any joint that has the potential of 50 or more occupants has to mandatorily hold a fire safety license.

A No-Objection Certificate (NOC) from the fire department ensures and certifies that your joint is safe from any hazard. Also, there is no fee required for the same so beware if anyone tries to charge you for it.

Steps to obtain Fire Safety License in Delhi:

  1. Visit https://dfs.delhigovt.nic.in/content/forms.
  2. Click on “FORM I APPLICATION FOR GRANT OF FIRE SAFETY” to download the form.
  3. Take a printout of the form, fill it and submit to Delhi Fire Service Headquarters, Connaught Place.
  4. After a few days, an official will visit and the place and approve it.

There is no requirement of any documents in this. Just fill the form, write an application, and submit it to the Fire Department.

Frequently Asked Questions (FAQs)

Do I need a Fire Safety License for my restaurant?

Any restaurant or cafe that has the potential of 50 or more occupants has to mandatorily hold a fire safety license.

Do I need Liquor License to sell Liquor?

If you intend to serve liquor at your restaurant, having a liquor license is a must. Without it, you are not allowed to serve alcoholic drinks. 

Do I need a license to play music in my restaurant or cafe?

Yes, you need to get a license issued by Phonographic Performance Limited (PPL).

Do I need a license to run a food truck?

Yes, to run a food business, you must also register yourself under the Shops and Establishment Act. Even if you own a food truck and not a physical shop, it is mandatory.

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