Licenses Required to Open a Coffee Shop in India

16 Jan, 2021

In the past few decades, the coffee business has been steadily growing. It is the great opportunity for the middle class to open a coffee shop in India and gained huge profit by following all the rules and regulation of this industry as per given by respective authority of Government of India. With the help of well-furnished interiors and decor attracts the large customer based and young crowd by providing good quality of products.

What are the things to be considered while Opening a Coffee Shop?

Location of the business: Selection of location is a very difficult task to start the coffee shop business. Location of the business must have an impact on the success of the business. It should be open in an area with a high floating population like campus, societies, town, P.G areas that they can easily access in the coffee shop.
Business Plan: It is another important aspect to get success in the business, the applicant must require frame a solid business plan or they can take help of consultants to frame the business plan so that they can achieve their target without any hindrance.
Budget and finance: It is also another aspect to get success in the business. For a startup, they can use their savings and take a business loan to invest their business and they can take from their partner/relatives for small investment purpose.
Marketing & Promotion: If the business is of small nature then for seeking customer base they have to publish advertisements through pamphlets, Radio, television, with discounts/ coupons so, that customer get attract towards the coffee

READ Starting a Food Truck Business in India

What are the Licenses and Registration required to Open a Coffee Shop?

Company Registration: In India government of India regulates various authorities to register the company. Coffee shops can be set up in India either through a sole proprietorship or Limited Liability Partnership (LLP) and by opening a private limited company to get its legal existence and access various sources of funding, as a private limited company, LLP and sole proprietorship have minimal compliances and other related formalities.
FSSAI License: It is a most important license which is mandatory to obtain by any food business operators. FSSAI stands for Food Safety and Standards Authority of India, it is also known as Food License. It ensures the quality of the food product is as per standards of FSSAI Act and safety and hygiene for consumption. The quality of the food product is checked by the commissioner of FSSAI at the premise of Owner where it is made, after the inspection if he satisfied by the quality of the food then grant 14- digit FSSAI no. which is printed on every food product. There are 3 types of FSSAI Licenses and Registration which depend upon the size and turnover of the company.

Basic registration: if Annual turnover is up to 12 lakhs then basic registration needs to be obtained by FSSAI which is issued by the state government.
State license: If Annual turnover is more than 12 lakhs but up to 20 crores then State license required to be obtained to do business in a particular state.
FSSAI Central License: If Annual turnover is more than 20 crore then central license required to be obtained to do business in more than one state.

Licenses required to open a Coffee Shop

The following licenses are mandatory to open a coffee shop in India:

Health trade License: Public health is one of the supreme concerns for a coffee It is another important license that coffee owner must-have. Health trade license is issued by a Municipal corporation or Department of the health of the concerned State; it certifies that all the hygiene and safety norms are followed by café owner. The license is issued within 60 days by submission of all the eligible documents. If health trade license is not taken by café owner, then Municipal Corporation has the power to shut down the premise.
License for Eating House: For the eating house license, the coffee shop owner has to apply to the city/state police headquarters and police commissioner. In some of the cities, an applicant can apply through online for grant of the registration certificate.
Insurances Required: For public liability, product liability, fire policy & for building & Asset coffee shop operators have to take insurance from any insurance company who provide such insurances.
Fire Security Certificate: It is the responsibility of coffee shop owner to protect their customers from the quality of the food product or danger such as a fire. The premises must be located at a good location and have proper fire security arrangements and for this NOC will be required from the fire department. After the inspection of premises, the NOC will be a grant by the fire
License for playing Music/ Video: Applicant need to get a license which is in compliance with the Copyright Act, 1957 and it can be obtained from Phonographic Performance Limited http://www.pplindia.org/. Or Indian performing Right Society http://www.iprs.org/. For playing recorded music/video.
Trademark Registration: Trademark is the combination of words, phrases, symbols or designs are used in the course of trade which is unique and different from It is beneficial to coffee shop operator to help people become aware of your new marketing brand. So, it is mandatory to get it registered its trademark with the department of Trademark. http://ipindia.nic.in/. Trademark validity is for 10 years and it is essential for running a bakery successful.
GST Registration: It is mandatory for every food business operator for carrying out the taxable supply of the goods and services and whose turnover exceeds 20 lakhs require obtaining GST number through https://www.gst.gov.in/.
Shop & Establishment Act: The workers of the coffee shop are protected by the said act, which controls the terms and conditions of employment. They have to take a license from under the shop & establishment act.