How to Obtain Liquor License in Delhi

In Delhi, selling alcoholic beverages requires obtaining a liquor license. Various types of liquor licenses are available in the liquor industry, including liquor licenses for bars, restaurants, liquor shops, wholesale operations, and alcohol sales companies. 

Anyone caught selling alcohol without the proper license may face penalties. Therefore, obtaining the appropriate liquor license is essential. In this blog post, we will guide you on how to obtain liquor license in Delhi.

Types of Liquor Licenses

There are different types of liquor licenses based on different needs like selling, distribution, etc. Here are the most common types of liquor licenses in Delhi:

• FL-3 License (Foreign Liquor Licence): Luxury hotels' upscale bars and restaurants use this license to serve imported alcoholic beverages.

• CL-4 License (Country Liquor Licence): This license permits the sale of locally brewed alcoholic drinks in rural regions and smaller towns.

• FL-2 License (Foreign Liquor Licence): Standard hotels and restaurants require this license to offer foreign-manufactured liquor.

• Hotel and Restaurant License: This license authorizes hotels/bars/restaurants/pubs to sell and service alcoholic beverages on their premises.

• Retail Liquor Licence: Stores must secure this license to sell packaged alcohol meant for off-site consumption. The retail liquor licence allows selling packaged drinks without serving liquor on-site for consumption.

• Wholesale License: Distributors and wholesalers use this license to supply alcohol to retail businesses.

• Temporary Event License: This license authorizes the sale of alcohol at short-term events such as weddings, festivals, and fairs.

• Import and Export License: Businesses involved in the international trade of alcohol must obtain this license.

• Military Canteen License: Military canteens holding this license can provide discounted alcoholic drinks to service members.

• Club License: This license permits social clubs to serve alcoholic beverages exclusively to their registered members.

• Beer and Wine License: With this permit, restaurants and bars can sell beer and wine but are not allowed to offer distilled spirits.

Eligibility Criteria for Liquor License in Delhi

The eligibility criteria for liquor licence in Delhi is as follows:

• The applicant must be an Indian citizen also a Delhi resident

• They must be over 25 years of age

• The individual should not have any criminal convictions under the AP Excise Act or any other relevant law.

• There should be no pending dues with the AP Excise Department.

• The business premises must be situated in an area designated under the AP Excise Act.

• The applicant must adhere to all applicable zoning and building regulations.

• There should be sufficient space available for storing and selling liquor.

• Separate restroom facilities for men and women must be provided.

• Proper security arrangements must be in place.

Documents Required for Liquor License in Delhi 

To obtain a liquor license in Delhi, it is necessary to have the following documents:

• Photograph of the Applicant

• Proof of Identity

• Proof of Address

• Proof of Shop’s Legal Possession, such as lease or rental agreement

• Shop’s floor plan

• NOC of state fire department

• NOC of the state municipal corporation

• Duly filled application along with personal and business details

• Income Tax Clearance Certificate and ITR Filing (Most Recent Copy)

• Affidavit declaring that the applicant has no criminal record

• A number of affidavits in the name of the applicant

Process for Obtaining Liquor License in Delhi

The procedure for obtaining liquor licence in Delhi includes several steps. The general process is explained as follows:

• The Applicant must send the necessary documents for liquor license to the Deputy Commissioner of Excise in Delhi.

• For proof of ownership, a lease or rent proof must be provided by the applicant to prove the legal possession of the prospective shop.

• To apply for an L10 liquor license in Delhi, the applicant must legally occupy the shop premises, as confirmed through an affidavit. They also need to submit a layout plan of the store, clearly showing that they own or control the property.

• Along with this, applicants must provide an income tax clearance certificate and a domicile certificate proving they reside in the same state where the application is being made.

• Once all documents are ready, the applicant must deposit a demand draft of ₹8 lakh in favor of the Deputy Commissioner (Excise).

• After submission, the authorities will review the application and may reach out if any additional information is needed. According to the Delhi Excise Rules, 2010, the applicant must ensure there are no objections or legal issues related to the application.

• Following submission, a public notice will be displayed at the proposed business location. This notice will include the applicant’s name, license type, and other relevant details. It will remain on display for a set period during which the public can raise any objections. These objections, if any, will be forwarded to the relevant department.

• Once all formalities are completed and no valid objections remain, the excise department will issue the liquor license to the applicant.

Validity and Renewal of Liquor License in Delhi

A liquor license initially remains valid for one year from the date of issuance. To continue operating legally, you must renew it every year. The renewal application can be found on the State Excise Department’s official website. To renew the license, you’ll need to submit the form along with the applicable renewal fee. 

It is best to begin this process at least 30 days before your current license for liquor expires. Doing so will help you to avoid any disruptions. The State Excise Department sets the renewal fee and this fee can vary depending on the exact license type. In some cases, license holders with a record of good conduct may be eligible for fee reduction.

Conclusion

For anyone intending to sell or serve alcoholic beverages in Delhi, obtaining a liquor license in Delhi is a mandatory legal step. The process involves meeting the eligibility requirements, submitting proper documentation to the Excise Dept, and following their guidelines. By adhering to the correct procedure and applying through the right channels, applicants can operate their liquor business legally and avoid penalties and legal repercussions. 

If you want to open a liquor store, or a liquor brewing company, it is essential that you obtain a company registration certificate from the Registrar of Companies (RoC). For assistance in obtaining this certificate, connect with Registrationwala’s business registration consultants.

Frequently Asked Questions (FAQs)

Q1. Who issues liquor licences in India?
A. Liquor licences in India are issued by the respective State Excise Departments.

Q2. Which authority issues liquor licenses in Delhi?
A. The Excise Department of the Government of NCT of Delhi is responsible for issuing liquor licenses in Delhi.

Q3. What is the minimum age requirement to sell alcoholic beverages in Delhi?
A. The applicant must be at least 25 years old to sell alcohol in Delhi.

Q4. What is the FL-2 License?
A. FL-2 License is required by standard hotels and restaurants to serve foreign-manufactured liquor.

Q5. What is the CL-4 License?
A. CL-4 License allows the sale of locally brewed country liquor in rural and small-town areas.

Q6. What is FL-3 License?
A. FL-3 License permits luxury hotels, upscale bars, and restaurants to serve imported alcoholic beverages.

Q7. Do I need GST Registration for liquor business?

A. No, you do not require GST registration for a liquor business. On alcohol, the Government of India charges Value Added Tax, not Goods and Services Tax.

Author: Manish Kumar

I’m Manish Kumar, a content management specialist. I simplify complex financial and regulatory topics into clear, insightful content. As a regular contributor to the Registrationwala portal, I provide updates on finance, Tax, government schemes, compliance, and other incorporation information. My goal is to keep you informed about key industry developments and their impact.