Opening a bar in India requires careful thought and planning. If anyone wants to establish a bar in India, remember that the whole process is not an easy task because it comes with several challenges that demand a lot of planning to navigate safely. So, you need to follow all the rules and regulations set up to open a bar business in India. To establish a bar business in India, you will require several licenses such as FSSAI License, Bar License, Liquor License, Trade License, Eating House License, Shop & Establishment License, and it requires several compliance measures. It is vital to choose the right place, and hiring high-quality staff and getting the proper license is the make or break aspect of establishing a bar in India. In this process, we discuss the process to obtain a bar license in India.
The ambit of Liquor License in India
Depending upon each state's laws, a valid liquor license in India covers various ambit concerning the import, manufacture, export, transport, purchase, sale, etc. of liquor.
- Where and when the alcohol or liquor can be sold or served.
- A container used to sell liquor.
- Types of alcohol to be served.
- Cost of alcohol.
- To whom alcohol can be sold.
- Detailed information related to the distribution and manufacture of alcohol.
- Quality of liquor to be served.
- Businesses engaged in selling alcohol.
What are the benefits of Bar or Liquor License in India?
Following are the benefits of a bar or liquor license:
- If any individual wants to sell alcohol, then any individual can distribute alcohol or alcoholic beverages with the help of this license.
- Providing a good range of drinks and fruits in any hotel, bar, or restaurant helps to increase a healthy number of customers, which helps the business boost.
- It helps to increase profit, but for this liquor permit is mandatory.
- A liquor permit allows an establishment to take benefits of online and offline marketing opportunities for bars, hotels, restaurants, etc.
Types of Bar License in India
Following are the different types of bar license available in India:
What are the essential documents required for Bar License in India?
Following is the list of all the vital documents required at the time of obtaining bar or liquor license:
- Address proof of the applicant.
- Identity proof of the applicant.
- Address proof of the business premises.
- In case the business is a company, then the applicant must submit the incorporation certificate, MOA (Memorandum of Association), and AOA (Articles of Association).
- A NOC (or No Objection Certificate is required from the Fire Department.
- Application with the Local Excise Department.
- Company’s Income Tax Return.
- Submit the latest photographs of the applicant.
- List of all the directors of the company.
- An affidavit declaring the applicant has no criminal offence record.
- If case the applicant belongs to a partnership concern, the list of partners must be provided.
Procedure for getting a Bar License in India
Step 1: First, the applicant must understand which types of bar or liquor license are required to operate the business in India. Depending on the requirements, the applicant has to apply for a liquor license.
Step 2: The location of the city or state where the applicant wants to open a bar must be considered for acquiring a liquor license in India. The significant state authorities must be contacted for obtaining such a license. Generally, these procedures would be an online procedure, and the applicant must go to the respective state excise website to register for the bar license in India.
Step 3: The applicant must secure the bar license for a specific state before operating the bar or restaurant. Compliance with the particular state excise laws is vital for running a bar business in India.
Step 4: The cost of the bar or liquor license in a respective state would differ based on the state's requirement. Hence, the applicant needs to secure all the information before applying for the license in a respective state.
Step 5: Provide vital information on the application and the application for bar license such information includes all the documentation required to9 be added with the license.
Step 6: After the above step, the applicant must provide information or answer questions such as:
- What type of alcohol has to be served?
- Does the premise serve only one type of alcohol or different types of alcohol?
- Additional documents which have to be submitted with the application include NOC, excise documents, ITR, and particular Municipal Corporation.
Step 7: After that, the applicant must provide all the relevant background information of the business, which include the state of affairs of the business. Once the above step is completed, the authority will examine the applicant's license application for bar business. If there are no objections related to the license, then the license will be issued to the applicant. The respective authority will also send a notification to the applicant of the registered business.
Step 8: The notice sent by the authority must be displayed within the premises of the office.
Conclusion
In India, if any individual or entity wants to sell alcohol or alcoholic beverages, then it is mandatory to obtain a bar or liquor license in India. If any individual or entity distributing alcohol without the liquor permit, then the legal authorities shutdown the entity and take proper legal action against the entity. That’s why the State Government regulate and control the manufacturing, selling and production of liquor or alcohol in India.
