Guide · Operations
Licences you need to open a café in India, and the order to apply
FSSAI, GST, Shops & Establishments, municipal, fire, signage and music licences for an Indian café, what they cost and the order to apply.

By Aaryavar
8 min readFigures checked

On this page
- Which FSSAI licence does a café need?
- When does a café have to register for GST, and at what rate?
- Do I need Shops and Establishments registration?
- Which municipal licence do I need, and do the police still issue one?
- When is a fire NOC needed?
- What about signage, music, alcohol and packaged goods?
- What does each licence cost, and who issues it?
- In what order should I apply?
- Worked example: a 40-seat café in Mumbai
Key takeaways
- Apply for FSSAI first. It is online, it is quick for small cafés, and in Delhi's MCD area the health trade licence is now applied for on the back of it.
- Since 1 April 2026 a café with turnover up to ₹1.5 crore needs only FSSAI registration, not a state licence. Check which side of that line your first-year projection falls.
- GST registration is compulsory once turnover crosses the services threshold; a standalone café then charges 5% and cannot claim input tax credit.
- Fire NOC, eating-house and trade licences are set by your state and city, not by a national rule. Delhi and Mumbai already differ, so ask your own municipal ward office before you sign a lease.
- Book the fire and building checks before fit-out, not after. They are the slowest step and the hardest to fix once the kitchen is built.
A café in India needs FSSAI registration or a licence, GST registration once turnover crosses the threshold, Shops and Establishments registration, a municipal health or trade licence, and, depending on city and size, a fire NOC, an eating-house licence, a signage permit and music licences. Apply for FSSAI first, then GST and Shops, then municipal, fire and police.
Which FSSAI licence does a café need?
Most new cafés need only FSSAI registration, because the threshold was raised on 1 April 2026. Registration now covers turnover up to ₹1.5 crore, a state licence covers turnover up to ₹50 crore, and a central licence applies above that (FSSAI press release, March 2026).
The same notice says registrations and licences will have perpetual validity instead of periodic renewal, and that registration will be instant with no pre-inspection (FSSAI). The older regulations let you pick a term of 1 to 5 years and pay for each year; you may still see that option on older pages.
The fee schedule on the FoSCoS portal lists, for restaurants, ₹100 a year for registration, ₹2,000 a year for a state licence and ₹7,500 a year for a central licence (FoSCoS fee schedule). That document still shows the old ₹12 lakh and ₹20 crore thresholds, so go by the March 2026 notice for the thresholds and by the portal's payment screen for the fee you actually pay.
On timing, the regulations give the authority 7 days to grant registration or order an inspection. If it inspects, it has 30 days to decide (FSSAI Licensing Regulations). A licence is due within 60 days of a complete application, and you may start trading if nothing comes back in that time.
When does a café have to register for GST, and at what rate?
You must register once your aggregate turnover crosses ₹20 lakh, the threshold for suppliers of services. In Manipur, Mizoram, Nagaland and Tripura the threshold is ₹10 lakh (CBIC, GST — An Update). Restaurant service is treated as a service, whether the food is eaten in, taken away or delivered.
A standalone café pays 5% GST and cannot claim input tax credit. The 18% rate with credit applies only to restaurants inside hotels where a room is charged at ₹7,500 or more (GST Council). The rate changes of 22 September 2025 kept this split: the GST Council clarified that a standalone restaurant cannot declare itself a "specified premises" to pay 18% with credit (GST Council, September 2025). The same GST Council deck describes a composition scheme for restaurants at 5% of turnover, up to ₹1.5 crore. Under that scheme you cannot collect tax from customers or sell through an e-commerce operator (GST Council).
Many cafés register before opening even when they are under the threshold. Landlords, delivery aggregators and suppliers often ask for a GSTIN. You apply on the GST portal.
Do I need Shops and Establishments registration?
Yes, but each state has its own Act, deadline and fee. In Maharashtra, a place with fewer than ten workers files an online "intimation" within 60 days of starting business; at ten or more it needs full registration under Section 6 (Maharashtra Shops and Establishments Act, s.7). Karnataka runs its registration through the Labour Department's e-Karmika portal under its own 1961 Act. Delhi and other states have their own portals. Check your state labour department's site for the fee.
Which municipal licence do I need, and do the police still issue one?
You need a municipal health or trade licence almost everywhere. Whether the police are also involved depends on the city, and Delhi and Mumbai already work differently.
- Mumbai: the corporation issues an eating-house licence under Section 394 of the MMC Act "only in respect to Health & Hygiene". The fire NOC must be obtained separately from the Chief Fire Officer (MCGM circular). The circular also sets a minimum floor area for the dining room and kitchen, so read it before you sign a lease.
- Delhi: police licensing of eating houses was moved to the civic bodies (MCD, NDMC, Delhi Cantonment Board) in June 2025 (The Tribune). The Delhi Police page still lists its old fee of ₹300 for fresh registration (Delhi Police Licensing). In May 2026 the MCD said restaurants still need a health trade licence, applied for on the strength of the FSSAI certificate. In NDMC areas the FSSAI licence is treated as the health trade licence (Curly Tales).
- Elsewhere: call your ward office or check the municipal portal before you sign a lease. Fees are usually set by area, seating and whether you serve alcohol.
When is a fire NOC needed?
There is no single national threshold. It depends on the state's fire Act and on your building. In Delhi, the fire service grants NOCs to restaurants with 50 or more seats. Smaller places file a fire-safety affidavit, and an excise order asks for an NOC from any restaurant of 90 sq m or more, whatever its seating (S.S. Rana & Co., 2019). In Mumbai, the MCGM treats the fire NOC as a separate approval from the eating-house licence. Where a NOC applies, it is usually checked twice: once on plans and once before occupation. So start it before fit-out.
What about signage, music, alcohol and packaged goods?
- Signage: an illuminated or projecting sign usually needs the corporation's advertisement or sky-sign permission. In Mumbai that is a separate application to the MCGM Licence Department (MCGM advertising licence).
- Music: playing recorded music in public needs a licence from the rights holders. PPL India covers sound recordings and IPRS covers the underlying songs. Both set fees by tariff, based on area and type of premises, so get quotes from both.
- Alcohol: a bar licence comes from the state excise department and has its own conditions. In Delhi, for example, a fire NOC is a precondition for bars with 50 or more seats (S.S. Rana & Co.). Treat it as a separate project.
- Packaged goods: if you pre-pack beans, cookies or granola for retail, register as a packer with the Legal Metrology controller within 90 days of starting to pack. The fee is ₹500 (Legal Metrology Rules, r.27). Any scale you use to sell by weight must be verified and stamped by the state Legal Metrology department.
What does each licence cost, and who issues it?
Only FSSAI, GST and the Legal Metrology packer registration have one national fee. Everything else is priced by your state or city.
| Licence | Who issues it | When you need it | Fee | Validity |
|---|---|---|---|---|
| FSSAI registration | State food safety department, via FoSCoS | Turnover up to ₹1.5 crore (FSSAI) | ₹100 a year (FoSCoS) | Perpetual, announced March 2026 |
| FSSAI state licence | State food safety department | Turnover above ₹1.5 crore, up to ₹50 crore (FSSAI) | ₹2,000 a year for restaurants (FoSCoS) | Perpetual, announced March 2026 |
| GST registration | GST department, via the GST portal | Turnover above ₹20 lakh, or ₹10 lakh in four north-eastern states (CBIC) | Apply online (GST portal) | Until cancelled |
| Shops and Establishments | State labour department | From opening; within 60 days in Maharashtra | Varies by state (Maharashtra Act) | Varies by state |
| Health or trade licence | Municipal corporation | Before opening | Varies by city (MCGM) | Varies by city |
| Fire NOC | State fire service | Depends on seats, area and building (S.S. Rana) | Varies by state (S.S. Rana) | Varies by state |
| Eating-house licence | Police or civic body, by city | Where the city still requires it | ₹300 fresh (Delhi Police's old fee) (Delhi Police) | Varies by city |
| Signage | Municipal corporation | For illuminated or projecting signs | Varies by city (MCGM) | Varies by city |
| Music | PPL India and IPRS | If you play recorded music | By tariff (PPL tariffs, IPRS) | Usually a year |
| Packer registration | Legal Metrology controller | If you pre-pack goods for sale | ₹500 (Rule 27) | One-time |
In what order should I apply?
Apply for FSSAI first. It is online, it is quick for most cafés under the new threshold, and at least one city (Delhi's MCD) now asks for it before issuing a health trade licence (Curly Tales). We could not confirm that every city requires it first, so check your own city.
- Sign the lease, or get a letter of intent, and collect the owner's NOC and property documents.
- Apply for FSSAI and GST in the same week.
- File the Shops and Establishments registration or intimation.
- Submit fire plans and apply for the municipal health or trade licence.
- Apply for the police eating-house licence where one still exists, plus signage and music licences.
- Get the fire and municipal inspections done before opening.
Documents to keep ready: PAN and Aadhaar of the owner or partners; the entity's PAN and incorporation or partnership deed; the rent agreement and owner's NOC; a recent electricity bill; a layout plan showing the kitchen and seating; the property tax receipt; passport photos; a list of food categories for FSSAI; bank details and a cancelled cheque for GST; and, for fire, the building's occupancy certificate.
Worked example: a 40-seat café in Mumbai
These figures are illustrative, not quotes. We assume a proprietorship expecting ₹90 lakh in first-year sales, eight staff, a leased ground-floor unit and no alcohol.
- Week 1: lease signed. FSSAI registration applied for (turnover under ₹1.5 crore) and GST applied for.
- Week 2: FSSAI certificate and GSTIN received. Fire consultant submits plans to the Mumbai Fire Brigade.
- Week 3: MCGM eating-house licence application filed with the FSSAI certificate, lease and layout. Music quotes requested from PPL and IPRS.
- Weeks 4–6: fit-out under way. Sign permission applied for. Police eating-house requirement checked with the local station.
- Week 7: fire inspection and occupancy NOC.
- Week 8: MCGM health inspection and licence issued. Soft opening.
- Within 60 days of opening: Shops and Establishments intimation filed, since there are fewer than ten workers.
If any single step slips, build in two to four weeks of slack before you commit to an opening date.
How we made this
We read the FSSAI regulations, fee schedule and March 2026 reform notice, the CBIC and GST Council material on restaurant GST including the September 2025 rate changes, the Maharashtra Shops and Establishments Act, and the Mumbai, Delhi and fire-service sources listed below; AI tools helped gather and draft; the author checked every figure against its source. Our editorial standards
Sources
- MoHFW Approves Major Regulatory Reforms to Promote Ease of Doing Business and Strengthen Food Safety Framework (press release, 13 March 2026), Food Safety and Standards Authority of India. Accessed 27 Sept 2026.
- Kind of Business, Criteria, License/Registration and Fee Per Annum, FSSAI FoSCoS portal. Accessed 27 Sept 2026.
- Food Safety and Standards (Licensing and Registration of Food Businesses) Regulations, 2011 — compendium, Food Safety and Standards Authority of India. Accessed 27 Sept 2026.
- GST — An Update (as on 1 May 2019), Central Board of Indirect Taxes and Customs. Accessed 27 Sept 2026.
- GST on Restaurant Services, GST Council. Accessed 27 Sept 2026.
- Recommendations of the 56th meeting of the GST Council (press release, September 2025), GST Council / Ministry of Finance. Accessed 27 Sept 2026.
- GST registration, Goods and Services Tax Network (GST portal). Accessed 27 Sept 2026.
- Maharashtra Shops and Establishments (Regulation of Employment and Conditions of Service) Act, 2017 — Section 7, Indian Kanoon (text of the Act). Accessed 27 Sept 2026.
- Circular No. HO/44380/C: Revised licence granting procedure under Section 394, MMC Act (Eating House), Municipal Corporation of Greater Mumbai, Public Health Department. Accessed 27 Sept 2026.
- Eating House registration, Delhi Police Licensing Unit. Accessed 27 Sept 2026.
- CM hails transfer of licensing powers from police to civic bodies in 7 sectors, The Tribune. Accessed 27 Sept 2026.
- Do Delhi restaurants need both FSSAI registration and a health trade licence? MCD clarifies, Curly Tales. Accessed 27 Sept 2026.
- NOC from Fire Services Department — additional compliance for restaurants, S.S. Rana & Co.. Accessed 27 Sept 2026.
- Legal Metrology (Packaged Commodities) Rules, 2011 — Rule 27, Indian Kanoon (text of the Rules). Accessed 27 Sept 2026.
- Advertisement licence, Municipal Corporation of Greater Mumbai. Accessed 27 Sept 2026.
- Tariffs, Phonographic Performance Limited (PPL India). Accessed 27 Sept 2026.
- All about licensing, The Indian Performing Right Society (IPRS). Accessed 27 Sept 2026.
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