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A cafe is a food business that sells light snacks (like momos, noodles, and sandwiches) and beverages (like carbonated drinks, fruit juices, and milkshakes). Like every food business in India, a cafe must secure a food license from the Food Safety and Standards Authority of India (FSSAI).
To secure this, an application must be filed with FSSAI via the FOSCOS portal. Apart from food license, many other licenses are required to open a cafe. In this blog post, we shall discuss all the major licenses required to open a cafe in India.
A cafe is a popular food business that offers a relaxed atmosphere where individuals can order food and beverages, and socialize with each other. Its key focus is to provide a comfortable environment for all. Many cafes offer WiFi facilities, so that freelancers and remote workers can work there while sipping on tea/coffee.
By starting a cafe, you can generate income by catering to individuals who appreciate the ambience of your cafe and offering them good food and beverages.
Here are all the major licenses and certifications required to start a cafe in India:
To open a cafe, you must get it registered under the Companies Act 2013. For this, you must file an application with the Registrar of Companies (ROC) via the official Ministry of Corporate Affairs (MCA) portal. Make sure to fill in the details in the application form correctly, and attach all the required documents like Memorandum of Association and Articles of Association. Then, submit the application by paying the prescribed fees.
Once your application is received by ROC, it’ll be carefully assessed. If the application fulfills all the requirements, the ROC will issue a certificate of company incorporation in the name of your company. After this, your company will be officially recognized as a legally registered business entity in India.
FSSAI license is a mandatory legal requirement for businesses engaged in supplying, serving, distributing, importing, storing, processing, transporting, selling and manufacturing food products. Basically, it is required for all food businesses in India, including cafes.
To secure a FSSAI license, you must file an application using the FOSCOS portal. The exact form you require for filing an application depends on the annual turnover of your cafe. If your cafe’s annual turnover is below Rs. 12 lakh, you will have to apply for basic registration with the help of Form A.
However, if your cafe’s annual turnover crosses Rs. 12 lakh but falls below Rs. 20 crore, you will need to use Form B to apply for a State License. If the cafe's turnover exceeds Rs. 20 crore, it will require a Central License, and again, the application will have to be submitted using the same form, i.e., Form B.
In India, obtaining a license under the Shop and Establishment Act is a mandatory requirement for all businesses in India. It is a state-level legislation. This means each state has its own Shop and Establishment Act.
To apply for a license under this Act, you must file an application with the Department of Labour of your state or any other designated authority that administers this Act. Generally, this license needs to be obtained in 30 days of commencing your business.
GST Registration is mandatory for a business if its annual turnover exceeds Rs. 40 lakhs for goods and Rs. 20 lakhs for services. Therefore, if your cafe business meets this criteria, you must register under the GST regime.
The process to apply for the GST registration certificate is online. Therefore, you do not need to visit a government office for it. All you need to do is visit the official GST portal and register there. Once your cafe gets GST-registered, it’ll receive a Goods and Services Tax Identification Number (GSTIN). For assistance in the registration process for GST, you can reach out to our consultants at Registrationwala.
Another important license required to run a cafe in India is the Eating House License. This license allows businesses to serve food and beverages to their customers. This license ensures that the public is being served hygienic, safe and good quality food.
To secure this license, the applicant must follow a state-specific procedure. For instance, in Delhi, you need to file an application through Delhi Police Licensing portal, and submit all the necessary documents and then undergo a verification process involving scrutiny by the Additional Commissioner of Police, who heads the Licensing unit.
The health trade license must be secured by businesses engaged in activities that affect public health. Therefore, establishments dealing with food, including cafes, must secure this license.
To secure the health trade license, you must file an application with the respective municipal corporation of your state or union territory. Along with the application, you will need to attach important documents like PAN, aadhaar card, lease agreement, sale deed, etc.
Once your application is received by the municipal corporation, its details will be reviewed and verified. If the application meets all the requirements upon examination and verification, the authority will issue your business a health trade license.
A No Objection Certificate (NOC) from the Fire Safety Department is mandatory for a cafe business. This NOC ensures that the cafe space has all the necessary equipment in case of fire or other emergencies.
In Delhi, to secure the NOC, you must file an application with Delhi Fire Services. Along with the application, you will need to submit necessary documents like building model details, building plan layout, etc. Once your application is filed, the authority might conduct an inspection of the premises. If satisfied with the application and inspection report, the authority will issue an NOC.
If a business engages in any activity that may result in environmental degradation, it is necessary to obtain a No Objection Certificate (NOC) from the Pollution Control Board. Since a cafe is involved in activities like cooking and waste generation, it may cause pollution. Therefore, it must obtain the Pollution Control Board’s NOC.
To obtain NOC, you must file an application via the online portal of the Pollution Control Board of your state/union territory. For instance, to obtain the NOC for a cafe located in Delhi, you will need to file an application via the official portal of Delhi Pollution Control Committee.
In this blog post, we discussed various licenses and certificates required to open a cafe in Delhi. This includes certificate of incorporation, FSSAI license, eating house license, GST certificate, health trade license, NOCs, etc. Apart from them, other state-specific approvals may be required. For comprehensive support in establishing a cafe in India, connect with Registrationwala’s experts!
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