Corporate Law

Licences for a Restaurant or Hotel in Kerala

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Opening a restaurant, café, bakery or hotel in Kerala needs a set of licences from the food safety authority, the local body and, depending on the premises, other departments. Most of them must be in place before the doors open, and several depend on the building, so they are best planned before the lease is signed.

This article lists the licences a food business in Kerala usually needs.

Licences that usually apply

LicenceWhen it appliesAuthority
FSSAI registration or licenceEvery food business; basic registration, state licence or central licence depending on turnover and type of businessFood Safety and Standards Authority of India, through the Commissionerate of Food Safety, Kerala
Local body licenceRunning an eating house or food business within the local body areaPanchayat, municipality or corporation
Shops and establishments registrationEstablishments employing workersLabour Department, under the Kerala Shops and Commercial Establishments Act, 1960
GST registrationTurnover above the threshold, or where otherwise requiredGST portal
Fire safety approvalDepending on the building, seating and use of gasKerala Fire and Rescue Services
Consent from the Pollution Control BoardDepending on the size and category of the establishmentKerala State Pollution Control Board
Licence under the Abkari lawsOnly where liquor is servedExcise Department, Kerala
Copyright licences for musicWhere recorded music is played in the premisesThrough the relevant copyright societies

FSSAI: which level applies

  • Small food businesses below the prescribed turnover take basic FSSAI registration.
  • Larger businesses need a state licence, and certain categories need a central licence.
  • Food handlers should have medical fitness certificates, and the premises must meet the hygiene and sanitation requirements of the FSS regulations.
  • The FSSAI licence number must be displayed in the premises and on bills and menus as required.

GST on restaurant services

Restaurant services are generally taxed at a concessional rate without input tax credit, while restaurants in hotels with higher room tariffs and outdoor catering may be taxed differently. The applicable rate depends on the type of establishment and should be confirmed when the business is set up. See GST registration.

Choosing the structure

A single outlet is often run as a proprietorship or partnership. Where there are several partners, investors, a franchise model or plans for more outlets, an LLP or a private limited company is usually preferred. See LLP registration in Kerala and partnership firm registration.

Practical points

  • Confirm before leasing that the building’s permitted use allows a restaurant, and that fire and gas safety requirements can be met.
  • Register the restaurant’s name as a trademark early, since brand disputes are common in this sector. See trademark registration.
  • Keep a calendar of licence renewals; FSSAI and local body licences have fixed validity periods.
  • For franchise arrangements, a written franchise agreement covering brand use, fees and exit is essential.

Frequently asked questions

Can a home-based food business operate legally?

Yes, with FSSAI registration and, where required, a local body licence. The hygiene requirements apply equally to home kitchens.

Is a separate licence needed for a cloud kitchen?

A cloud kitchen needs FSSAI registration or licence and the local body licence for the kitchen premises. Delivery platforms require these before listing.

Do I need a licence to play music in the restaurant?

Playing recorded music in a commercial premises generally requires licences from the copyright owners or their societies.

ചുരുക്കം (Summary in Malayalam)

കേരളത്തിൽ റെസ്റ്റോറന്റ്, കഫേ, ബേക്കറി, ഹോട്ടൽ എന്നിവ തുടങ്ങാൻ FSSAI രജിസ്ട്രേഷൻ അല്ലെങ്കിൽ ലൈസൻസ്, തദ്ദേശ സ്ഥാപനത്തിന്റെ ലൈസൻസ്, ഷോപ്സ് ആൻഡ് എസ്റ്റാബ്ലിഷ്മെന്റ്സ് രജിസ്ട്രേഷൻ, ആവശ്യമെങ്കിൽ GST, ഫയർ NOC, മലിനീകരണ നിയന്ത്രണ ബോർഡിന്റെ അനുമതി എന്നിവ വേണം. മദ്യം വിളമ്പുന്നുവെങ്കിൽ എക്സൈസ് വകുപ്പിന്റെ ലൈസൻസും, സംഗീതം പ്ലേ ചെയ്യുന്നുവെങ്കിൽ പകർപ്പവകാശ ലൈസൻസും വേണം. പല അനുമതികളും കെട്ടിടത്തെ ആശ്രയിച്ചുള്ളതിനാൽ വാടകക്കരാർ ഒപ്പിടുന്നതിന് മുമ്പ് പരിശോധിക്കണം.

This article gives a general overview of licences for food businesses in Kerala. Thresholds, rates and procedures are revised from time to time; for accurate and current requirements, check with the Commissionerate of Food Safety, the local body and the other authorities concerned. The article is not advice on any particular case.

Please note. This article is provided for general information and is not professional advice or a solicitation of work. The law is stated as understood on the date shown above and may have changed since.