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Licenses required to Start a Hotel Business in India

Online Legal India LogoBy Ankar Kapuria Published On 19 Jan 2021 Updated On 21 Jan 2022 Category Start Business

Amidst the current situation it would be a decision which could work in either of the ways i.e. complete hit or flop. Due to the outbreak of Covid-19 since March 2020 it is seen that tourism and hospitality suffered a great blow but on the contrary it is also seen quite in the late 2020- 21 there are many tourists out of the monotonous effect while staying indoors many plaaned vacation weekend getaway or relaxation outings or even a day off from home cooking- the one place everyone vouches for are hotels and resorts.

A lot of the license requirements depend on the type of hotel, star rating, amenities and the location of the hotel. Further, the rules and regulations to obtain license for hotel industry differs according to the states – to operate a hotel business effortlessly.

List of Licenses and Permits Required

A list of licenses and registrations are necessary to obtain for beginning a hotel business in India 

Business Registration: It is of utmost importance any business entity before setting out should hold a business registration for a company or LLP.

Bar License: A Bar permit will be required from the applicable experts. Moreover, the Bar permit is normally given by divisions working under the State Government. 

FSSAI Food Business License: FSSAI business license under the Food Safety and Standard Act is required for working an eatery in India.

Income tax Registration and Returns:Income Tax Return form should be filed with the Income Tax Department. Further, all business entities will require to file the taxes on time, to avoid penalties.

GST Registration and Returns: As per the GST law, every individual/Company/LLP registered under the GST and the tax should be paid by filing GST returns.

Shops & Establishment Act Registration:A license under Shops and Establishment should obtain if the place of business also uses for any commercial activity in direct relation to any kind of trade that define under the Shops and Establishment Act of the particular state.

NOC from Ministry of Tourism: Additionally, Registration and functioning of hotels in India required permission to be obtained from the Ministry of Tourism.

Premises/ Building Permit: Further, All the hotels must get a proper building permit according to the relevant Town Planning or Development or Municipal Act.

Fire Safety Permit: A fire safety certificate is given to those premises which have to subsume up to the mark fire prevention and fire safety measures as per the relevant fire safety rules and regulations.

Public Performance License: This is permission or license from the copyright holder of the song or expression which is going to be used for any event organized at your hotel. 

Eating House License: Additionally, an eating house license is an integral license for conducting business where any kind of food or drink is supplied for consumption legally. 

How can we help you?

GST registration is only mandatory for every business entity who is specified by the government. But if a Hotelier/ Merchants/Transporters/ Exporters are willing to take the registration then they must follow all the compliance. Online Legal India™ is your next stop solution. We offer a plethora of services in GST compliances such as Modifications and filing of returns.


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