Starting a dhaba can be an attractive business opportunity because these roadside eateries offer affordable and filling meals to customers. From truck drivers and travellers to local residents, dhabas serve a wide range of customers looking for reasonably priced food.
However, opening a dhaba involves more than arranging a kitchen and starting operations. Depending on the location, size and nature of the business, several government registrations, licences and permissions may be required. Operating without the applicable approvals can result in notices from local authorities and, in some cases, action against the business.
Understanding the required licences before starting operations can help dhaba owners avoid unnecessary legal and regulatory problems.
FSSAI Licence and Trade Licence
The Food Safety and Standards Authority of India (FSSAI) regulates food businesses in India. A dhaba must obtain the applicable FSSAI registration or licence based on its business category and applicable requirements. The approval is intended to ensure that food businesses follow prescribed food safety and hygiene standards. Applications can be made through the official FSSAI system.
A trade licence is another important local permission. It is generally issued by the municipal corporation, municipality or panchayat having jurisdiction over the business location. The licence permits the business to operate in that particular area while complying with applicable local regulations. Depending on the location, applications may be submitted online or through the concerned local authority.
Health, GST and Shop Registration
A health trade licence or similar local health-related permission may also apply, depending on the city or local authority. Such requirements are intended to ensure proper sanitation and hygiene, including standards relating to the kitchen, utensils and water used by the establishment. In some locations, health-related approval may be linked with the trade licence.
GST registration depends on the applicable turnover threshold and other provisions under GST law. A newly opened dhaba may not necessarily need GST registration immediately, but registration becomes mandatory when the business falls within the applicable requirements.
Dhaba owners may also need registration under the Shop and Establishment Act. This is handled under the relevant state labour laws and establishes the business within the applicable regulatory framework. It can also cover matters such as employee records, working hours and leave provisions.
Fire Safety Permission May Also Be Required
Fire safety approval can become important for larger dhabas or establishments where LPG cylinders, tandoors or substantial open-flame cooking are used. Depending on local rules and the nature of the premises, a Fire Department NOC may be required.
The exact permissions can vary according to the state, municipality, premises and size of the establishment. Therefore, prospective dhaba owners should confirm the applicable requirements with the relevant local authorities before beginning operations.
Steps to Get the Required Dhaba Licences
The process generally begins with deciding the name of the dhaba and finalising a suitable location. Once the premises are decided, the owner can apply for the applicable FSSAI registration or licence and approach the local authority for the required trade licence.
Where applicable, permissions from the health and fire departments should also be obtained. GST and Shop and Establishment registration should be completed when required under the applicable rules.
After the necessary documents and applications are submitted, the concerned authorities may conduct an inspection of the premises. Once the establishment meets the required conditions and the applications are approved, the relevant licences and registrations are issued.
Disclaimer
Licensing requirements for a dhaba can differ depending on the state, municipality, location, business size and activities carried out at the premises. GST and other registrations are also subject to applicable laws and thresholds. The information provided here is for general awareness and should not be treated as legal advice. Before starting the business, applicants should confirm the latest requirements with the relevant government departments or a qualified professional.