10 Steps to Start a Restaurant In India
Thinking to start a restaurant business?? Well! These step by step guide will help you to start your business covering all legal and business aspects.
STEP 1 – Decide upon legal status of business
You need to decide on legal status of your business i.e you can either be sole proprietor, or firm or Company. The size of liability you want to assume and number of people involved in the business may affect the business structure. For example – Sole proprietor assumes all the liability whereas company shareholders have limited liability.
Once you have decided upon the status of your business, you can proceed with registration of business either by incorporation of company or forming a partnership.
STEP 2 – Restaurant theme, Menu
To start a restaurant, a theme must be decided; it could be based on cuisine like North Indian, Italian or South Indian etc or could be based on ambience like Roof top, middle river or middle-lake. A wonderful and delicious menu no doubt is required for its business beauty.
STEP 3 – Geographical location and kitchen layout plan
A kitchen layout which optimizes work and efficiency should be drawn , this is not only required for obtaining FFSAI license but also a good kitchen and restaurant layout plan will help smooth and efficient running of business.
STEP 4 – Licensing
Once you have a legal status to your business you can proceed with obtaining license for your restaurant business to run legitimately.
Food Safety and Standards Authority License (FSSAI)
Application for license should be made to Food Safety and Standards Authority of India, which ensures that the food your restaurant is going to make affirms the food safety standards of India and after the assurance license is been given as approval.
Following documents are required for making application
- Id Proof and Address Proof
- Valid Email Id
- Phone Number
- Declaration Of Food Safety Management Plan
- Kitchen Layout Plan
- List Of Food Category
- Water Testing Report from ISI approved Facility
- NOC from the owner or the partner
- Medical Certificates of Employees
If your restaurant is also going to serve liquor then liquor license will be required to obtain.
To Start a restaurant Trade license from local civil authorities like the State’s Municipal Corporation or the Health Department should be obtained.
STEP 5 – Fire safety Certification
NOC from the State Fire Department is required. After having all the safety equipment in place, Fire Officer must be invited for inspection of its premises and NOC should be obtained from him.
STEP 6 – GST Registration
Any business whose turnover exceeds the limit of Rs. 40 lakhs (Rs 10 lakhs for Special category state except J&K) should obtain GST registration.
If the turnover during the current year is likely to exceed the threshold then GST registration is required to be obtained.
It is worth noting Restaurant service providers among other service providers are given exclusive privilege to opt for composition scheme i.e they can opt for paying at concessional rate.
STEP 7 – Employ Staff and arranging vendors and suppliers
Chef, waiters and management are the key resources required for any restaurant business, these should be appointed for maintaining the business.
Suppliers and vendors should be selected based on quality inspections and reliability which can be placed upon on emergency.
STEP 8 – Home Delivery options
Delivering through personal staff or registering with Zomato or Swiggy will help your restaurant to grow. It not only allows your customer to taste your food at your place but also at their homes.
STEP 9 – Royalty for music
Restaurant is definitely a place for relaxing, entertainment, fun, informal or semi-formals discussion. Adding music to such place will surely add charm in its functioning. However playing recorded music in any commercial or non- commercial establishments requires a music license which is issued by Phonographic Performance Limited(PPL). The same can be obtained.
STEP 10 – Business Promotion
Promoting your restaurant through various means of discounts, cashback, reference benefits, accepting reviews and customer feedback will help you to grow your restaurant business.
If you require any assistance in getting registrations or license foryour restraurant please reach our experts at +91-7008804070