- Complete List of Hotel Business License That Are Required
- Premises Permit
- Fire Safety Permit
- Police License for Hotel
- Health Trade License or Trade License
- Business Registration
- ESI Registration
- PF Registration
- Bar License
- FSSAI Food Business License
- Administration Tax Registration
- VAT Registration
- Frequently Asked Questions
Complete List of Hotel Business License That Are Required
A list of licenses and registrations are necessary to obtain for beginning a hotel business in India. Many of the hotel business license and registrations shall obtain before the commencement of business. This license also requires renewal after a certain period. Also, most of the licenses ask the hotel to follow a certain set of rules or criteria’s for retaining validity. Hence, it becomes a priority for Startups in this field to get themselves beware of these list of hotel business licenses. To run the business smoothly.
The Bureau of Indian Standards did the formation of The National Building Code of India. This was to equalize the building regulations in the whole country. The National Building Code is embraced by all the Government Departments, Municipal Bodies, and rest of the Construction Agencies. According to the National Building Code, none of the business shall perform any development, or alterations or demolishes any building. They shall cause the same to do without getting a separate permit for each such development prior to the Authority. Hence, it is necessary for all the hotels to get a proper building permit according to the relevant Town Planning or Development or Municipal Act.
Fire Safety Permit
It is necessary to get a fire safety certificate from the Fire Department for operating a hotel business. It is one of the hotel business food licenses. Fire safety certificate is given to those premises which have to subsume upto the mark fire prevention and fire safety measures as per the relevant fire safety rules and regulations.
Police License for Hotel
This is also a hotel business license. Hotels are public places. The Police Department has a permanent look at them. It is necessary for all the hotels to maintain a proper data of all Guests who are visiting the hotel. Follow all the relevant rules and regulations and sustain a valid permit from the Police Department.
Health Trade License or Trade License
This is one of another hotel business license. A health trade license is generally required from the local Health Department. The municipal corporation of that area issues this license. The businesses that have a direct impact on public health requires this license. In Accordance with the equivalent hygiene and safety regulations, which are necessary for health is a prerequisite for issuing a health trade license.
This is also a hotel business license. It is recommended to set up a hotel for a company or LLP. If your company is operating under an artificial legal entity than the liability of your promoters. Respective of your business is under a limit and the business as a going concern would be easy to transfer to another person.
ESI is the autonomous corporation functional under the Ministry of Labour and Employment, Government of India. This is also a hotel business license. Registration with Employee’s State Insurance is necessary for business in India which hires 10 or more employees. To sustain in accordance with the ESI norms, the employer has to contribute 4.75% of the wages of all those employees earning Rs.15,000 or less toward ESI employer dues. It is necessary for the employee to contribute 1.75% of his/her wages as ESI dues.
An Employee Provident Fund (PF) Registration is required for any establishment that employs more than 20 persons in India. The PF Board administers a contributory provident fund, pension scheme and an insurance scheme for the workforce engaged in the organized sector in India.
In the event that the lodging works a bar or serves liquor in the eateries. A Bar permit will be required from the applicable experts. The Bar permit is normally given by divisions working under the State Government. Thus, the necessity for a banish permit differs from state to state.
FSSAI Food Business License
An FSSAI nourishment business permit under the Food Safety and Standard Act is required for working an eatery in India. The FSSAI sustenance business permit typically accommodates multi-year. It is sustainable toward the finish of every year. FSSAI permit for eateries does not fall under the domain of the Central Government.
Administration Tax Registration
Administration assess is on the administrations of any lodging or on the sustenance administrations gave by an eatery in the inn. In this manner, lodgings should necessarily get and keep up benefit charge enrollment. Inns having room Tariff of Rs. 1000/ – or more need to pay the administration charge on 60% of room tax at 14% (the net rate of Service Tax comes to 8.4%). For eateries, the administration charge is relevant on 40% of the Food and Beverages charge @ 14% (the net rate of administration impose comes to 5.6%). Further, the utilization of lobby where nourishment serves pull in benefit assess @ 14%. With the reduction of 30%(the net rate of administration impose comes to 9.8%).
Value Added Tax is valid for the servings by a restaurant in a hotel. Hence the hotels need to have VAT registration to comply with VAT regulations. As the VAT comes under the act of the State Governments. The VAT norms and procedure for registration vary from state to state.
Frequently Asked Questions
• Hotel Trade License/Trade License
• Business Registration
• ESI Registration
• PF Registration
• Bar License (if applicable)
• FSSAI Food Safety and Authority License
• Administration Tax Registration
• VAT Registration
• Conduct Market Research about the Hotel Industry in India
• Search for the type and location of Hotel Businesses
• Place of the logistics services
• Minimum area required
• A layout plan
• Gathering all the finances and the funds
• Hiring staff
• Get star rating and promotion
• Zoning and land use permits
• Building permit
• Health department permit
• Fire and police department permits
• Alarm permits
• Sales tax license/sellers permit/resellers permit
• Special state-issued occupational licenses
• You might be prohibited from adding a new item, service or structure
• There might be costly penalties, and interests, or even personal liens.
• Your location could be padlocked
If it is a 5-star hotel, then it requires 220 to 280 sq. feet area for every room.