Restaurant for rent in Mumbai is one of the most sought after type of commercial properties at Jagaha.com, and our clients have requested us multiple times over to help them understand how to determine whether the commercial property is suitable for their restaurant and what are the licenses required to open a restaurant in Mumbai.
If you are a resident of Mumbai, you can probably name a list of at least ten restaurants that have been set up in the past year itself. And the high demand is valid, owing to the fact that the food industry will most likely never run out of business. There is an increasing demand for new cuisines and even more for the entire experience. And that’s where the opportunity lies, in being different enough to invite people to try, yet being brilliant enough to keep people visiting.
Jagaha has many clients who are aspiring restauranteurs whom we would like to help. If you are also an aspiring restauranteur and have stumbled upon this blog for your research, Jagaha.com is at your service and here to help you understand all the requirements for setting up a successful business!
So let’s begin.
Restaurants can be classified into various types depending on what they serve. I don’t mean cuisines, but whether the restaurant is a cloud kitchen/takeaway, dine-in café, a dine-in only veg restaurant, dine-in non-veg restaurant, restaurant with bar, lounge or a club. For any space which will include a kitchen set up, the following criteria are mandatory for the commercial property:
Parameters for commercial property to qualify for a restaurant
- Minimum allotment of a kitchen is 25-30% of the total carpet area of the commercial property. (Not applicable in cases of cloud kitchen/takeaway)
- Fire compliance of the property. Minimum 1 fire exit apart from the entry point in the Kitchen.
- Services layouts – Commercial 3 phase electrical wiring, Water storage, and connection Drainage lines for wastewater, oil and slurry pipelines, etc.
- Waste management – Must have segregated Garbage disposal system.
- CNG Gas storage in case of portable cylinders or gas connection permission.
After we find the perfect commercial property, the next step in the process is to apply for approval and licenses from the government. As of May 2019, the following licenses are required to start a restaurant in India. Some may not be applicable to smaller businesses like cloud kitchen/cake shop/small café.
FSSAI Food Safety and Standards Authority License: This is a 14 digit Unique Identification Code. And given to restaurants whose food complies with the standards laid out by the government and just acts as a confirmation to your customers that everything served are the restaurant is adhering to the quality that is required of it. This license is given to manufacturers, traders, and restaurants and should be printed on packaged foods. One of the most important licenses required.
Documents required for FSSAI License
- ID Proof
- Address Proof
- Phone Number
- Kitchen Layout Plan
- Declaration of food safety management plan
- Water testing report from a facility that approved by ISI
- NOC from Owner
- Medical certificate of employees
- List of food category
Due to many instances where public health was not given enough importance and the declining food quality, the health and trade license was established and generated by the local civic authority like the Brihanmumbai Municipal corporation (BMC) or health department. This is another license that is mandatory for opening a restaurant or café in Mumbai.
The minimum area of the restaurant should be 300 square feet.
- Ownership documents
- Rent Agreement & NOC from Landlord
- Site plan and layout of restaurant – Three copies
- Structural engineer approved certificate of stability of the property.
- Proof of sewer connection
- Electricity bill and water bill
- Indemnity bond
- Employees medical certificate
- Property tax proof
Fees: Rs 500-50,000
Time within which license is issued: within 60 days from submission of application form.
The Municipal Corporation reserves right to shut down the business should the restauranteur fail to acquire the health license and operate without it.
Eating House License
Eating House means – any place to which the public are admitted, and where any kind of food or drink is supplied for consumption and this license must be acquired from the licensing police commissioner of the city in which you wish to operate your business. One can apply for eating house license here.
- Site plan of the property
- Leave and license agreement
- NOC from the Landlord
- Address proof of company/proprietor/partner
- Firefighting compliance – NOC from fire department
- Undertaking with regards to CCTV installed.
Fees: Rs 300
Shop and Establishment Act/Gumasta License
If you have more than 10 employees, this license is compulsory and can cost anywhere between Rs 200 – 4000 per year depending on the number of employees.
- Aadhaar and Pan Card
- Identity Proof
- Address proof of Proprietor or company
- Details of the employees
GST Registration is compulsory for all types of food businesses – from cafes to fine-dine. One can apply for the same at www.gst.gov.in.
- Ownership/tenancy rights of the property.
- Proprietorship, company proof.
For a property below 350 square feet and using induction cooking in their kitchen, it is mandatory to have a fire extinguisher
For a property over 350 square feet and/or using gas cooking, it is mandatory to have a second exit.
A NOC from the fire department has to be applied for before the property interiors/masonry work has begun. No fee is required for application of fire-fighting compliance and one can apply for it online on this website: http://mahafireservice.gov.in/site/RoleOfMFS/eLicense.aspx
Liquor license is mandatory if you are going to be serving any form of alcohol. These can be acquired from the Local Excise commissioner and applied for online. Any establishment that serves alcohol and doesn’t have a valid license will have to pay a hefty penalty fine or shut shop completely.
Fees: Rs 5000 at the time of application and 50000 for each additional spirit brand like whiskey, rum, vodka etc.
- Company registration/proof of legal status of restaurant entity.
- Parking layout plan
- Plot ownership document
- Occupancy certificate
- Trade License from BMC
- Registration of eating house license issues by DCP
- Income Tax and Sales Tax Assessment proof
- Fire Compliance certificate/NOC from state fire service.
One has to apply to the BMC for signage license if they require to put signages for their business. It is important to have this license for ANY FORM OF MARKETING.
We hope this log provided you with a better understanding of the licenses required to open a restaurant in Mumbai. Should you have any doubts while looking for restaurants in Mumbai or any type of commercial property requirement for example: Office space for rent in BKC or Office for rent in Andheri West, our team at Jagaha.com is here to help you! Give us a call at 9029000670 or email us at [email protected], and our best advisors will call you.