What Are the Licences and Registrations Required for Hotel Business?
- Published On: 03/05/2021 12:00 am
Starting and running a hotel business in India necessarily requires a variety of licenses and registrations. Any permits must be received prior to the beginning of construction, so start early and keep in mind that they will take time to obtain. You’ll need to have group discussions to find out the perfect place, hire good staff, and promote the restaurant accordingly. As a result, it is important for startups in this sector to be aware of the list of hotel business licenses. And keep the company going properly. Furthermore, the laws and regulations for obtaining a hotel industry licence differ state by state.
Fire Security Certificate:
For running a hotel business, a fire safety certificate or permit is required from the Fire Department. Fire safety guidelines must be followed, and proper fire security arrangements should be in action. A fire safety certificate is issued to hotel businesses that must follow such fire safety standards. A No Objection Certificate (NOC) is also necessary from the fire department to run a restaurant.
The Police Department keeps an eye on hotels because they are public places. As a result, all hotels must keep a proper list of all guests who have stayed at the hotel, follow all local rules, and have a required Police Department permit.
It is recommended that a hotel be set up under a legal entity such as a private limited or limited liability partnership (LLP). Your company has a limit, and the business as a going concern will be easy to transfer to others.
Health Trade License:
The Health Trade License is regulated in the 11th schedule of the Municipal Corporation Act (1957). A health trade license from the local Health Department is generally required. This licence is issued by the local municipal government. The issuance of a health trade licence is dependent on compliance with relevant hygiene and safety standards that are important for public health.
Eating House License:
Every area where the public is allowed and where any kind of food or drink is provided for consumption on the premises is referred to as an eating house. The Eating House License is issued by the city’s Licensing Police Commissioner. The average cost of capital for this licence for three years is Rs. 300.
Shop and Establishment License:
The Shops and Establishment Act requires you to register your restaurant if you’d like to run a food company in India. Within 30 days of the start of your business, you must register your restaurant. This is a city-specific licence. This licence would cost you at least somewhere between Rs.200 and Rs.4, 000 a year.
ESI is a government of India-owned Company that works under the Ministry of Labour and Employment. There is a hotel company licence as well. For companies in India with ten or more employees, registration with the Employees State Insurance is required. For all employees earning Rs.15,000 or less, the company would pay 4.75 percent of their salaries to ESI employer dues. The employee must pay 1.75 percent of his or her salary in ESI contributions.
In India, any business employing more than employees must register with the Employee Provident Fund (PF). The PF Board is responsible for managing a contributory provident fund, a pension plan, and an insurance scheme for workers in India’s organised economy.
A bar licence would be required from the relevant authorities if the hotel runs a bar or serves alcohol in its restaurants. Departments under the State Government are usually the ones that issue bar licences. As a result, the conditions for obtaining a bar licence differ from state to state.
Lift Clearance License:
If your hotel is multi storied and you want to operate a lift, you will need to get permission to do so. After verifying the installation of lift, structure, safety gears, and other products, the Electrical Inspector issues this licence from the Labour Commissioner’s office. For receiving lift clearance, state-specific applications are available.
A restaurant music license is required to play music in your restaurant. Phonographic Performance Limited is the company behind it (PPL). All companies need a licence. PPL represents record companies and artists in the use of recorded music. If a restaurant plays music and does not have the necessary license, they will face legal consequences
To ensure that your restaurant makes the most money, you must advertise it effectively. You must acquire a valid permit, which is the signage license, if you wish to advertise your restaurant by signs, flyers, photographs, and symbols. Local civil authorities, such as municipal corporations, may provide you with this license.
Certificate of Environmental Clearance (CEC):
The restaurant is responsible not only for the health of its customers, but also for the environment. As a result, restaurants must still apply for a Certificate Of Environmental Clearance.
Any food business operating needs to apply for a food license which is a commonly known FSSAI license in India. The Food Safety and Standards Authority of India (FSSAI) is a self-governing organisation that works to ensure food safety and regulations in India. It is part of the Ministry of Health and Family Welfare of the Government of India. The Food Safety and Standards Authority of India (FSSAI) is associated with providing FSSAI license to all food businesses and has made it possible to obtain a food licence prior to beginning a company.
There are three types of licences in the FSSAI licencing system .They are basic license, state license, and central license. Let us discuss this in detail.
1. Basic License:
Petty food manufacturers, and also small-scale food manufacturers, warehouses, transporters, distributors, retailers, are all required to obtain FSSAI registration. Basic Registration for companies with an annual turnover of less than Rs. 12 lacs in a single state. Before the time limit expires, the FSSAI License must be renewed. Before the time limit expires, the FSSAI License must be renewed. This is issued by the state government for a period of one to five years.
2. State License:
Both small and medium-sized businesses that operate as suppliers, dealers, brokers, or distributors and have an annual turnover of more than 12 lakhs are required to obtain a State FSSAI licence. This licence has a limit of 5 years and a minimum of 1 year.
3. Central License:
Importers, Export Oriented Units, large manufacturers, operators in Central Government agencies, airports, and seaports, among many others, must obtain a central food licence. This licence is required for businesses with annual revenue of more than 20 crore. The Central Government issues this licence for a period of 1 to 5 years.
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