Quick answer: Every food business needs FSSAI registration or a licence. Most also need a trade licence or street vending certificate from the city, and a shop and establishment registration if they have premises or staff. GST is needed once turnover crosses the limit, and a fire NOC for larger restaurants. A small stall can be fully legal for under ₹5,000; a small restaurant usually spends ₹15,000 to ₹60,000, depending on the city.
Licences differ by state and city, but the list below covers what almost every food business in India is asked for. Start with FSSAI, because most other offices and the delivery apps ask for it first.
Which licences your business needs
| Licence | Stall or cart | Home kitchen | Cloud kitchen | Restaurant or café |
|---|---|---|---|---|
| FSSAI registration or licence | Yes | Yes | Yes | Yes |
| Street vending certificate | Yes (public road) | No | No | No |
| Trade or health trade licence | Often | Sometimes | Yes | Yes |
| Shop and establishment registration | Rarely | Rarely | Yes | Yes |
| GST registration | Above the limit | Above the limit | Usually (apps ask) | Above the limit |
| Fire NOC | No | No | Depends on size | Yes, above a size |
| Eating house licence | No | No | Some cities | Some cities |
| Signage licence | Sometimes | No | Sometimes | Yes |
| Music licence | No | No | No | If you play recorded music |
| Udyam (MSME) registration | Optional | Optional | Optional | Optional |
The licences, one by one
1. FSSAI registration or licence. Required for every food business, including home kitchens. Since 1 April 2026, Basic Registration covers turnover up to ₹1.5 crore a year and costs ₹100 a year. A State Licence covers ₹1.5 crore to ₹50 crore, and a Central Licence is needed above ₹50 crore or for importers and businesses in several states. Read the FSSAI registration guide.
2. Street vending certificate. Selling from a cart or stall on a public road needs a vending certificate from your city’s Town Vending Committee under the Street Vendors Act. Private land (a market, a shop front you rent) needs the owner’s written permission instead.
3. Trade licence (or health trade licence). Issued by the municipal corporation for running a food business at a fixed place. Fees depend on the city, the area and the type of business.
4. Shop and establishment registration. Required under your state’s Shops and Establishments Act for most premises with a shop front or employees. It’s usually an online form on the state labour department portal.
5. GST registration. Restaurants, cafés and food services must register once turnover crosses ₹20 lakh a year (₹10 lakh in some smaller states). Businesses that only sell goods, such as packed sweets or bakery items, have a ₹40 lakh limit. Swiggy and Zomato usually ask for a GST number. See GST for food businesses.
6. Fire NOC. Restaurants above a certain size or seating, and kitchens in larger buildings, need a fire safety certificate from the state or city fire department. The size rules vary by state, so ask your fire office before fitting out.
7. Eating house licence. Some cities ask restaurants and eateries for a separate eating house licence. Delhi dropped its police eating house licence in June 2025 and moved this to the municipal bodies, so ask your municipal office what applies where you are.
8. Signage licence. A board or hoarding outside your shop often needs permission from the municipal corporation.
9. Music licence. Playing recorded music in a restaurant or café is a public performance, which needs a licence from the copyright societies that represent the music owners.
10. Udyam registration (optional). Free MSME registration that helps with bank loans and government schemes. See the Udyam registration guide.
Only if it applies to you: a liquor licence if you serve alcohol, consent from the State Pollution Control Board for larger restaurants, and stamped weighing scales (legal metrology) if you sell by weight.
In what order to apply
- Fix the place first
Every licence asks for an address. Get the rent agreement or the owner’s written permission before you apply.
- Apply for FSSAI
Online on the FoSCoS portal. Most other offices and the delivery apps ask for your FSSAI number.
- Get your city permission
Street vending certificate for a cart, or a trade licence for a fixed shop or kitchen.
- Register the premises
Shop and establishment registration on your state’s labour portal, if your state asks for it.
- Fire safety and signage
Apply for a fire NOC and a signage licence if your size and city require them.
- GST when you need it
Register before you cross the limit, or before you list on Swiggy and Zomato.
What it costs
Licence costs, first year
- FSSAI Basic Registration
- ₹100
- Trade licence (varies by city)
- ₹2,000–10,000
- Shop and establishment
- ₹0–2,000
- GST registration
- ₹0
- Fire safety equipment and check
- ₹5,000–15,000
- Udyam registration
- ₹0
Trade licence and shop registration fees vary a lot by city and state, so treat these as typical examples. Government fees are only part of the cost. Fire equipment, stamped weighing scales and the time spent on paperwork add up, so budget for them in your setup cost plan.
Money tip
Useful links
- FSSAI FoSCoS portal: apply for registration or a licence (see our FSSAI guide)
- GST portal: register for GST (see our GST guide)
- Udyam portal: free MSME registration (see our Udyam guide)
FAQ
What is the first licence I need for a food business? FSSAI registration or a licence. It’s required by law for every food business, and most other offices ask for it.
Can I start a food stall with only FSSAI registration? FSSAI is essential, but selling on a public road also needs a vending certificate from your Town Vending Committee. On private land, you need the owner’s written permission.
Do I need a trade licence for a home kitchen? Usually not, but some cities ask for one. Check with your municipal office, especially if customers come to your home to collect orders.
How much do all the licences cost? A small stall can be legal for under ₹5,000. A small cloud kitchen or restaurant usually spends ₹15,000 to ₹60,000 including fire equipment, depending on the city.
Do licences need renewing? Some do. Trade licences and many state registrations are renewed yearly or every few years, so note each renewal date.
Related: How to start a momo stall · Cloud kitchen setup cost · How to start a tiffin service
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