Running a restaurant in India requires several registrations and ongoing compliance across food safety, tax and labour law. Missing any can mean penalties or closure.

This guide is a complete checklist for restaurant owners.

Registrations you need

  • Business structure (proprietorship, LLP or company)
  • GST registration (mandatory above threshold; often needed for suppliers)
  • Shops & Establishment registration
  • Udyam/MSME registration (optional, for benefits)

Licences and permits

  • FSSAI licence (State or Central based on size)
  • Local health/trade licence from the municipality
  • Fire safety NOC
  • Liquor licence (if serving alcohol)
  • Music licence (if playing recorded music)

Taxes and returns

  • GST at 5% on restaurant service (without input tax credit) in most cases
  • TDS on rent, contractor and professional payments
  • Professional tax on employees (state-dependent)

Practical tips

  • Display your FSSAI number on the menu and premises
  • Keep GST invoices and file returns on time
  • Renew FSSAI and trade licences before expiry

Frequently asked questions

What GST rate applies to restaurants?

Most standalone restaurants charge 5% GST without input tax credit; rates differ for restaurants in hotels above a room-tariff threshold.

Which FSSAI licence does a restaurant need?

Usually a State Licence; large chains and those crossing the higher turnover need a Central Licence.