Licenses and Permits Required to Start a Café in Kolkata

Kolkata’s café scene is growing fast, with cozy coffee shops attracting young people, working professionals, and creatives. Starting a café is exciting, but following the legal rules is a must. From food safety to fire safety, having the right permits helps avoid trouble. It also builds trust with customers and keeps your business running smoothly without the risk of fines or shutdowns. In this blog, you will learn about the licenses and permits required to start a Café in Kolkata. 

Why Do You Need Permits to Start a Café?

Starting a café involves more than just great coffee and ambiance. Various permits are required to ensure that your business operates legally and safely. Here are the key reasons to start a café in India:

1. Legal Compliance: Permits ensure that your café complies with local, state, and national laws. Operating without them can lead to heavy penalties or closure.
2. Food Safety and Health Standards: A food safety license shows that your café maintains proper hygiene and cleanliness in the kitchen and dining areas. It helps protect your customers from food-related illnesses and builds trust by showing that you care about their health and safety.
3. Fire and Building Safety:  Fire safety and building permits are required to ensure that your café is safe for everyone. They confirm that your place follows fire rules and building standards. It protects both your staff and customers in case of any emergency.
4. Environmental Responsibility: Environmental permits, such as waste disposal, help your café manage garbage in a safe and responsible way. They make sure that you are not harming the environment and show customers that your business cares about being eco-friendly.
5. Fair Business Practices: A trade license certifies that you are legally allowed to carry out commercial activity in a particular location. It prevents unfair business practices.
6. Consumer Trust: When you display valid licenses at your café, it shows customers that you follow the rules. It tells them you care about quality, cleanliness, and safety. It helps build trust and makes them feel more comfortable while dining.
7. Tax Compliance: A GST registration ensures that your business contributes fairly to public revenues and allows you to claim input tax credit.
8. Employment Laws: Labor law registrations (e.g., Shops and Establishment License) help ensure that employee rights, working conditions, and wages are protected.
9. Avoiding Legal Trouble: Proper documentation protects you from legal liabilities and potential lawsuits from regulatory bodies or customers.
10. Ease of Business Operations: Having the right permits makes running your café smoother. They help you open a business bank account, and apply for loans. It also helps to grow or expand your café in the future.

Key Permits and Licenses Required to Start a Café in Kolkata

Here are the key permits and Licenses required to start a Café in Kolkata:

1. Business Entity Registration

Before starting your café, you must register your business under the right legal structure. This gives your café official recognition to apply for licenses. It ensures that you follow the law from the very beginning. You can choose from several types of business structures:

1. Sole Proprietorship: This is the simplest form, where one person owns and runs the café. It is easy to set up but the owner is personally responsible for all losses or debts.
2. Partnership: Here, two or more people come together to run the business and share profits, responsibilities, and any risks involved.
3. Limited Liability Partnership (LLP): This model gives the benefits of a partnership but protects each partner from personal liability, meaning they are not responsible for each other’s mistakes.
4. Private Limited Company: This structure creates a separate legal identity for your café, and shareholders enjoy limited liability. It is ideal for scaling up or attracting investors.

To register a business in India, start by choosing the right business structure. Then, get a Digital Signature Certificate (DSC) and Director Identification Number (DIN). Reserve a unique company name, prepare incorporation documents, and file the application. Once approved, you will receive a Certificate of Incorporation, making your business official.

However, registering your business provides legal recognition and facilitates other licensing processes.

2. FSSAI License (Food Safety and Standards Authority of India)

If you are opening a café in Kolkata, you must get an FSSAI registration or license from the Food Safety and Standards Authority of India, as required by the Food Safety and Standards Act, 2006. This license confirms that your café follows proper food safety and hygiene standards. It also helps build trust with customers by showing your commitment to their well-being.

Types of FSSAI Licenses:

Here are the three types of FSSAI Licenses:

1. FSSAI Registration (Basic License): For small food businesses with an annual turnover of up to Rs. 12 lakhs. Ideal for small cafés or startups.
2. State License: This license is required, if turnover is between Rs. 12 lakhs and Rs. 20 crores annually. Also applies to cafés with multiple outlets within a state.
3. Central License: If your café operates in more than one state or earns over Rs. 20 crores a year, you will need a Central FSSAI License. It suits large chains.

Key Requirements:

Here are the key requirements of the FSSAI License:

• Business Address Proof (rental agreement or ownership documents).
• Food Safety Management Plan.
• Photo ID and address proof of proprietor/partners/directors.
• List of food items to be served or manufactured.
• Kitchen layout and equipment list (especially for dine-in cafés).
• Declaration form and proof of turnover (for State/Central licenses).

Procedure to Obtain:

To register your food business with FSSAI, start by visiting the FoSCoS portal. Select ‘Apply for License/Registration’ and choose between Form A (for basic registration) or Form B (for state/central license) based on your business type and turnover. Fill in the required details, upload supporting documents (like ID proof, address proof, and a food safety management plan), and pay the applicable fee. After submission, the FSSAI may inspect your premises. Once approved, your FSSAI license will be issued, valid for 1 to 5 years, and must be renewed before expiry.

3. Trade License from Kolkata Municipal Corporation (KMC)

A Trade License, also known as an Eating House License. If you are running a café in Kolkata, you must get a Trade License which is also called a Certificate of Enlistment (CE), from the Kolkata Municipal Corporation (KMC). This license gives you legal permission to operate your café and ensures you follow the city’s local rules and regulations.

Procedures for Obtaining a Trade License:

To apply for a trade license, visit the Kolkata Municipal Corporation (KMC) website. Fill out the online application form with business and personal details. Upload necessary documents such as identity proof, address proof, and proof of business premises. The system will calculate the applicable fees, which must be paid online. After successful submission and payment, a unique Application Number is generated for tracking. Once verified and approved by KMC authorities, the Trade License is issued and must be renewed annually.

Renewal and Validity:

Trade Licenses are typically valid for one year and must be renewed annually:

Renewal Process:

• You need to access the 'Online Renewal Application Registration (For Existing C.E)' on the KMC portal.
• Next, you need to submit the FSSAI renewal application along with the required documents.
• You must pay the renewal fees as per the demand notice.

4. GST Registration

Goods and Services Tax (GST) is a comprehensive indirect tax levied on the supply of goods and services across India. You must obtain a GST registration for a café in Kolkata. It helps you to comply with tax regulations and to avail of benefits like Input Tax Credit (ITC).

Eligibility for GST Registration:

Mandatory Registration:

For goods’ business, Rs. 40 lakh turnover in a year is the threshold for GST registration, and for services it is 20 lakh. As the café is a service, your business will fall under second category.   

If your café earns more than Rs. 20 lakh (10 lakh for special category states) in a year, GST registration becomes mandatory. This rule applies to the total income from all sales and services.

Voluntary Registration: Even if your café earns less than Rs. 20 lakh (10 lakh for special category states) a year, you can choose to register for GST. This helps you claim tax credits and builds trust with customers.

Special category states are: Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, Himachal Pradesh, and Uttarakhand.

Steps to Register for GST:

To begin, you must visit the official GST portal and select the ‘Services’, ‘Registration’, and ‘New Registration’ option. In Part A, provide details such as the type of taxpayer, state, PAN, legal name, email, and mobile number for OTP verification. Once verified, a Temporary Reference Number (TRN) is generated. Use the TRN to log in and complete Part B, which includes entering business details, principal and additional business addresses, promoter/partner information, bank account details, and the primary business activity. You must also upload required documents like proof of business registration, identity/address proofs, and bank details. After completing the application, submit it using a Digital Signature (DSC), EVC, or Aadhaar-based OTP. Once verified, a GSTIN is issued.

Post-Registration Compliance:

Here are the Post-registration Compliance:

• Display of GSTIN: The GSTIN must be prominently displayed at your café premises.
• Filing Returns: Regular filing of GST returns (monthly or quarterly) is mandatory, detailing sales, purchases, and taxes paid.
• Payment of Tax: Timely payment of collected GST to the government is required to avoid penalties.

Obtaining GST registration ensures legal compliance. It allows your café to avail Input Tax Credit by reducing overall tax liability.

5. Health/Trade License from the Health Department

Operating a café in Kolkata necessitates obtaining a Health License from the Health Department of the Kolkata Municipal Corporation (KMC). This license ensures that your establishment complies with public health standards. It safeguards the well-being of patrons and staff.

Purpose of the Health License:

A Health License shows that your café follows the hygiene and cleanliness rules set by the Kolkata Municipal Corporation (KMC). It proves that your kitchen and service areas are safe, clean, and fit for food preparation. This helps protect your customers' health and builds trust.

Application Procedure

To get a Health License from the Kolkata Municipal Corporation (KMC), start by getting the application form from the KMC office or download it from their official website. Next, gather the necessary documents. For proof of your café’s premises, submit a property tax receipt if you own the space, a rent receipt if it is rented, or a lease agreement if it is leased. If you are using the space rent-free, you will need a consent letter from the property owner along with their valid Trade License. Also include ID proof of the owner or partners, and business registration documents. Finally, fill out the form, attach all documents, and submit everything to the KMC License Department.

Fees and Charges:

The fees for the Health License are determined based on the nature and size of the business. For detailed information on applicable fees, refer to the "Fees & Charges" section on the KMC website. 

Renewal Process:

The Health License is typically valid for one year and must be renewed annually. It includes:

• Renewal Notification: The Kolkata Municipal Corporation (KMC) might send you a Demand Notice as a reminder to renew your license. If not received, you must start the renewal process yourself before it expires.
• Submit Renewal Application: You must fill out the renewal application form. If your business details or ownership has changed, include the latest documents along with the form.
• Pay Renewal Fees: You must pay the specified renewal fees as indicated in the Demand Notice or as per the current fee schedule.

6. Fire Safety Certificate

Ensuring fire safety is paramount for operating a café in Kolkata. A Fire Safety Certificate, issued by the West Bengal Fire and Emergency Services (WBFES). This certificate confirms that your establishment complies with the necessary fire safety regulations, safeguarding patrons, staff, and property.

Applicability:

The requirement for a Fire Safety Certificate primarily applies to high-risk buildings such as those exceeding 14.5 meters in height or encompassing more than 5,000 cubic meters in volume. It is advisable for all establishments, including cafés, to adhere to fire safety norms to ensure a safe environment. 

Application Process:

To apply for a Fire Safety Certificate, you must start by visiting the Silpasathi portal. Register or log in, then go to the Fire and Emergency Services section and fill out the application with your café’s details. Upload required documents like architectural plans, building usage info, proof of ownership, etc. Pay the application fee online. After submission, officials from the West Bengal Fire and Emergency Services will inspect your premises. If everything is in order, your Fire Safety Certificate will be approved and available for download from the portal.

Validity and Renewal:

The Fire Safety Certificate is typically valid for a specified period, after which renewal is necessary. The renewal process mirrors the initial application and should be initiated before the certificate's expiration to maintain continuous compliance.

Compliance Requirements:

• Fire Safety Measures: Implement and maintain fire safety equipment such as fire extinguishers, alarms, emergency exits, etc.
• Staff Training: Conduct regular fire safety drills and training for staff members.
• Emergency Plan: Develop and display a clear evacuation plan for patrons and staff.

Getting a Fire Safety Certificate meets the legal rules. It shows that you take safety seriously and care about the people who visit or work at your café. It helps to build trust.

7. Environmental Clearance/NOC from Pollution Control Board

Establishing and operating a café in Kolkata requires adherence to environmental regulations to ensure minimal impact on the environment. The West Bengal Pollution Control Board (WBPCB) oversees these regulations and mandates obtaining a 'Consent to Establish' (often referred to as a No Objection Certificate or NOC). This will be helpful for certain categories of businesses.

Applicability:

Cafés typically fall under the 'Orange' category of industries, which includes businesses with moderate pollution potential. Therefore, obtaining the necessary consent from the WBPCB is essential. 

Consent to Establish (NOC):

Before commencing construction or operation, you must obtain Consent to Establish from the WBPCB.

Consent to Operate:

After setting up the café, you must obtain Consent to Operate before commencing operations.

Application Process:

To obtain Environmental Clearance or a No Objection Certificate (NOC) from the West Bengal Pollution Control Board (WBPCB), café owners must apply for a Consent to Establish. The process begins with online registration and form submission on the WBPCB portal. Applicants must provide identity proof, ownership or lease documents, site plans, equipment details, and proposed waste management practices. After uploading documents and paying the applicable fee, the WBPCB may conduct a site inspection. If all requirements are met, the board issues the NOC, allowing the business to proceed. This ensures the café operates responsibly with minimal environmental impact.

Validity and Renewal:

Both consents are valid for a specific period, typically five years, after which renewal is necessary. It is advisable to apply for renewal at least 120 days before the expiry of the existing consent. 

8. Shops and Establishment Act License

Operating a café in Kolkata requires registration under the West Bengal Shops and Establishments Act, 1963. This registration ensures compliance with labor laws and regulates aspects such as working hours, employee rights, and workplace conditions.

9. Signage License

If you want to display signs, banners, or illuminated boards outside your café, you will need a Signage License from the Kolkata Municipal Corporation (KMC). This ensures your signage follows local rules regarding size, placement, and brightness. It helps you to avoid fines. This license is usually valid for one year and needs to be renewed every year.

Conclusion

In conclusion, obtaining the necessary licenses and permits is essential to start and run a café legally in Kolkata. These approvals ensure your café meets food safety, health, tax, and environmental standards, while also building customer trust. Staying compliant not only protects your business from legal issues but also paves the way for sustainable growth and success in the competitive café market. Throughout this article, you have learned about the licenses and permits required to start a café in Kolkata. If you want to start a café in Kolkata, contact Online Legal India to get assistance to register your business or manage corporate compliance.