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HomeBlogLicenses Required to Open a Restaurant in India: Full List & Costs (2026)
Licenses & Government Registrations

Licenses Required to Open a Restaurant in India: Full List & Costs (2026)

Sidharth Ravichandran
Updated:
10 min read
licenses required to open a restaurant in india

To open a restaurant in India in 2026, you need an FSSAI license, Goods and Services Tax (GST) registration, Shop and Establishment registration, Trade License, and Fire Safety No Objection Certificate (Fire NOC). These licenses help businesses meet legal requirements, maintain operational compliance, and avoid regulatory issues throughout their operations.

From April 1, 2026, FSSAI revised its turnover thresholds and introduced perpetual validity for all FSSAI licenses. If you plan to serve alcohol or play copyrighted music, you must also obtain the required licenses from the State Excise Department and copyright licensing authorities.   

This guide explains every restaurant license required in India in 2026, including government fees, approval timelines, eligibility, and application steps. 

Key Takeaways

  • Every restaurant in India must obtain multiple licenses because different authorities regulate food safety, taxation, labor, fire safety, and local business operations.
  • An FSSAI license remains the primary food safety requirement, and new licenses now have perpetual validity under the 2026 amendments.
  • Restaurants may also need GST registration, Shop and Establishment registration, Trade License, Fire Safety NOC, Eating House License, and other approvals based on their business activities.
  • Optional licenses, including liquor, music, signage, and Pollution Control Board consents, depend on your restaurant type, location, and applicable state regulations.
  • Government fees can range from ₹100 for FSSAI Basic Registration to several lakh rupees for state liquor licenses, making early budget planning essential.
  • Restaurant license approvals can take anywhere from 60 to 180 days, depending on the license type, document verification, and state authority.
  • Applying in the correct sequence and preparing complete documentation helps reduce delays and supports faster regulatory approvals.

Why You Need Multiple Licenses to Open a Restaurant in India?

Restaurants in India must comply with central, state, and local laws before they can start operations. Different government authorities regulate food safety, taxation, labour, public safety, and local business activities. As a result, no single license covers every legal requirement.

You need multiple licenses for the following reasons:

  • Meet legal requirements: Different laws require separate approvals before you can legally operate a restaurant.
  • Avoid penalties: Missing a mandatory license can lead to fines, sealing of premises, suspension of business activities, or legal action.
  • Complete business registration: Banks, food delivery platforms, and other business partners often ask for valid licenses before providing their services.
  • Pass government inspections: Proper documentation helps you clear inspections conducted by food safety, municipal, labour, and fire authorities.
  • Build customer confidence: Valid licenses show that your restaurant operates legally and follows government regulations.
  • Support future expansion: Proper compliance makes it easier to open additional outlets, obtain financing, and partner with online food delivery platforms. 

Complete List of Licenses Required to Open a Restaurant in India (2026)

Below is the full list of licenses required for restaurant operations across every Indian state:

1. FSSAI License (Mandatory Food License for a Restaurant)

The FSSAI license is the primary food safety license required for every restaurant in India. FSSAI revised the turnover thresholds through the Food Safety and Standards (Licensing and Registration of Food Businesses) Amendment Regulations, 2026, effective from April 1, 2026. The amendment also introduced perpetual validity for FSSAI licenses, subject to continued compliance with applicable regulations.

The applicable FSSAI registration or license depends on your restaurant’s annual turnover and business category:  

FSSAI CategoryAnnual TurnoverGovernment Fee
Basic RegistrationUp to ₹1.5 crore₹100 per year
State License₹1.5 crore to ₹50 crore₹2,000 to ₹5,000 per year
Central LicenseAbove ₹50 crore, plus restaurants inside 5-star hotels and airports₹7,500 per year

Restaurant owners must submit their FSSAI registration or license application through the FoSCoS portal. Basic Registration generally takes about 7 days, while State and Central Licenses usually take 30 to 60 days, depending on document verification and approval by the licensing authority.     

2. GST Registration

A GST registration is mandatory for restaurants with an annual turnover above ₹20 lakh, or ₹10 lakh in special category states. Restaurants listed on food delivery platforms must register for GST regardless of turnover.

GST rates for restaurants vary based on the type of business:

  • Standalone Restaurants: Charge 5% GST without Input Tax Credit (ITC).
  • Takeaway and Online Delivery: Charge 5% GST without Input Tax Credit (ITC).
  • Hotel Restaurants (Room Tariff below ₹7,500): Charge 5% GST without Input Tax Credit (ITC).
  • Hotel Restaurants (Room Tariff of ₹7,500 or above): Charge 18% GST with Input Tax Credit (ITC).
  • Outdoor Catering Services: Charge 18% GST with ITC. 

The government does not charge any fee for GST registration. Businesses can submit their GST registration application through the GST Portal, and the approval process generally takes 3 to 7 working days.   

3. Shop and Establishment License

The Shop and Establishment License is mandatory for every commercial premise in India. The state Labour Department issues this license under the local Shops and Establishments Act. 

It regulates working hours, weekly offs, employee benefits, and overtime rules of your restaurant. Fees usually range from ₹1,000 to ₹15,000 based on staff size and city.

4. Restaurant Trade License 

The trade license is a municipal permit issued by your local civic body. Your Municipal Corporation grants this license after checking the location, zoning, and basic sanitation rules. 

Fees vary widely by city and restaurant size, usually between ₹5,000 and ₹25,000 per year. Renewal happens annually, mostly before March 31. Without this permit, your restaurant cannot operate legally, even with FSSAI approval in place.

5. Fire Safety NOC 

A Fire Safety NOC is mandatory for restaurants that fall under the fire safety requirements prescribed by the applicable State Fire Department and local building regulations. The State Fire Department issues the Fire NOC after inspecting the premises and verifying compliance with the prescribed fire safety standards. 

During the inspection, the authorities verify fire safety measures such as fire extinguishers, smoke detection systems, emergency exits, and sprinkler systems, wherever applicable. Government fees generally range from ₹5,000 to ₹20,000, and the approval process usually takes 15 to 30 days, depending on the state and the complexity of the inspection.   

6. Eating House License

An Eating House License allows restaurants, cafés, and similar food establishments to operate in states or Union Territories where local laws require this approval. The Commissioner of Police or the designated police authority issues this license according to the applicable state regulations.  

Government fees usually range from ₹300 to ₹3,000, and the approval process generally takes 45 to 60 days, depending on the local authority. Restaurant owners should confirm the applicable requirements with the local police or licensing authority before starting operations. 

7. Liquor Restaurant License (Optional)

A liquor restaurant license is required only if you plan to serve, sell, or distribute alcoholic beverages. The State Excise Department issues a liquor license under categories such as L-3 for restaurants and L-4 for hotels. Costs vary sharply by state and seating capacity. 

In Delhi, the annual L-17/L-17F license fee starts at ₹13,55,232 for restaurants with up to 50 seat covers and increases to ₹36,09,196 for restaurants with more than 200 seat covers

The licensing authority verifies your application and completes the required inspections before issuing the license. The approval process usually takes 60 to 180 days, depending on the applicable state excise regulations. 

8. Music License 

A music license is required under the Copyright Act of 1957 if your restaurant plays copyrighted music. Restaurants must obtain separate licenses from Phonographic Performance Limited (PPL) for sound recordings and the Indian Performing Right Society (IPRS) for musical and literary works. 

Annual license fees for music licenses generally range from ₹5,000 to ₹20,000, depending on the type of business and music usage. Playing copyrighted music without the required licenses may result in copyright infringement claims or legal action.

9. Signage License 

A signage license allows you to display your restaurant’s name, logo, and outdoor advertisements. The local Municipal Corporation or urban local authority issues this license according to local advertising and building regulations. Government fees generally range from ₹2,000 to ₹10,000 per year, depending on the sign size and location.

Restaurants that fall under the Green, Orange, or Red category under State Pollution Control Board guidelines may need environmental approvals before starting operations. Businesses requiring consent must obtain Consent to Establish (CTE) before construction and Consent to Operate (CTO) before commencing commercial operations. 

Authorities also verify pollution control measures, including kitchen exhaust systems, grease traps, wastewater management systems, and solid waste disposal arrangements, before granting approval. The applicable fees, validity period, and processing time vary across states and depend on the restaurant’s pollution category.

Restaurant License Fees and Approval Timelines in India (2026) 

The total cost of restaurant licenses in India generally ranges from ₹25,000 to ₹15 lakh, while approval timelines typically vary between 60 and 180 days:  

LicenseGovernment FeeApproval Time
FSSAI Basic Registration₹100/year7 days
FSSAI State License₹2,000–₹5,000/year30–60 days
FSSAI Central License₹7,500/year30–60 days
GST RegistrationFree3–7 days
Shop and Establishment Registration₹1,000–₹15,0007–15 days
Restaurant Trade License₹5,000–₹25,00015–30 days
Fire Safety NOC₹5,000–₹20,00015–30 days
Eating House License₹300–₹3,00045–60 days
Liquor License (State)₹5 lakh–₹36 lakh60–180 days
Music License₹5,000–₹20,0007–15 days

How to Apply for Restaurant Licenses in India? 

Follow these steps to speed up your restaurant license approval process:

  • Start early: Begin the license application process at least three to four months before your planned opening date.
  • Sequence the applications correctly: Apply for FSSAI and GST first, since other permits often reference these registration numbers.
  • Organize your documents: Keep digital copies of your rental agreement, kitchen layout, and proof of ownership in one folder.
  • Combine inspections: Coordinate fire and health inspections together to reduce repeat visits and save approval time.
  • Choose the right legal structure early: Large restaurant chains often choose company incorporation because it improves business credibility and supports future funding. Small restaurants usually choose proprietorship registration because it offers a simple setup and lower compliance requirements.

If you want to open a restaurant with full legal compliance, RegisterKaro can manage FSSAI, GST, trade license, and all required approvals for you. Our team ensures smooth registration so you can focus on running your restaurant without compliance delays. 

Contact us today to start your restaurant business with a proper legal setup and faster approvals!