Liquor License in India
Selling liquor is the most profitable business for a restaurant in India. It can help to increase the profit margin as the labor cost is low, and it has high profit margins.
Getting a Liquor License involves a lot of intricacies, procedures, and requirements. The State governments have to keep a check on the sale and consumption of the alcohol sold within the State as every State has a different set of liquor laws governing them.
Types of license
In some states, one needs to apply for a specific class of license depending on the type of business and the nature of liquor one intends to sell. Following are a set of general liquor licenses-
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Beer and Wine Liquor License
The Bar and restaurants wishing to sell soft liquors like beers and wine opt for this kind of license. After this, the owners don't have the license to deal with hard liquors.
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Restaurant Liquor License
A restaurant wanting to serve any type of alcohol on their premises can opt for this type of license. But the percentage of region dealing with alcohol should be limited to 40%.
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Tavern Liquor License
This is required when the business offers food but make up for half of their profits through the alcohol sale.
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Brewpub Liquor License for those who make their own beer and wine
There are various different licenses granted by different state governments. Following is the List of liquor license in Delhi
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L- 1 Licence
L-1 License is granted to company, society, partnership or proprietorship firms running a manufacturing unit. State Excise department issues public notice for inviting applications for the same in leading newspaper and official website.
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L-3 Licence
L-3 License is required for distilleries or bottling plants. The government issues tenders for granting this type of license.
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L-6 Licence
This license is for retail vendors of Indian liquor. The State government grants such license only to selected undertaking.
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L-9 Licence
This license is granted for the retail sale of liquor of foreign brands. This can only be available for an L-1 License holder who wants to get a foreign liquor license.
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L-10 Licence
If one wants to get a license for the retail sale of liquor of Indian and foreign brands of liquor, then they get it under L-10 License.
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P-13 Licence
This license is granted to hotels, restaurants, and clubs for providing them permission to serve foreign liquor in their premises for hostings specific function on a particular day.
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P-10 Licence
This license is granted by the government to serve the liquor at a specific function in particular premises anywhere in the city except public parks.
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Others
The government grants the L-11, L-12, L-15, L-16,L-17,L-18,L-19,L-20,L-21,L-28,L-29, L-30 licenses for various other reasons not covered under the above licenses. Hence, you can avail our services, and we'll assist you further with Liquor Licenses.
Liquor license regulates
- The businesses involved in selling alcohol
- When and where alcohol can be sold
- The quantity of alcohol to be sold
- Charges for alcohol
- The type of alcoholic beverages which is to be sold
- To whom it can be sold
- Lastly, it also regulates the manufacture and distribution of alcohol.
Who needs a Liquor License?
Liquor License is basically a license through which one gets permission to sell alcohol and alcoholic beverages. If you wish to start a business dealing with distribution, manufacturing, or sale of alcohol, you need to apply for a liquor license. It includes businesses ranging from restaurants, bars situated in hotels, private clubs, or other entities.
Liquor Laws in India
- Article 47 of the Indian Constitution directs the State to improve public health care and in particular prohibit intoxicating drinks and drugs which is injurious to health. It states, "the State shall endeavor to bring about prohibition of the consumption except for medicinal purposes of intoxicating drinks and of drugs which are injurious to health."
- Alcohol is a subject matter of the State under the 7 Schedule of the Indian Constitution. Thus, the law governing the sale and consumption of alcohol varies from State to State.
- In 5 States in India, there is a strict ban on sale, purchase, and consumption of alcohol.
- Anyone who is above 21 years of age can obtain a liquor license.
Documents required for a liquor license
Every State has a different set of documents required for a liquor license. Following are the general documents required for different liquor licenses in India-
- Identity proof and Address Proof of applicant
- Premises Address Proof
- NOC from the fire department
- NOC from the municipal corporation
- Application with business details
- List of Directors in case of a company
- MOA and AOA if the applicant is a company
- Copy of Latest IT return
- Photograph of an authorized person
- AN affidavit stating that the authorized person doesn’t have any criminal record or offence punishable under the State Act and is not a defaulter in paying any dues to the department.
Application Procedure for getting a Liquor License
To get a liquor license, we need to contact the excise department of our respective State. They have the full authority to grant the liquor license. Every State has a slightly different procedure for Licenses relating to liquor. Following are the general steps for getting a liquor license in India.
- Before planning to start dealing with liquor, one needs to have a liquor license.
- Fees vary from State to State as the State laws differ in this matter.
- Application along with Application Fee is to be submitted to the concerned authority.
- Application has to be submitted along with Identity and resident proof and other essential documents.
- The description of the license should be mentioned clearly.
- The basic details of the applicant must be mentioned.
- After the submission of the application, the authorities will verify the credentials submitted and call for any other details if required.
- On the submission of the application, a notice is posted at the proposed location of your business stating the name of the applicant and the type of license, etc.
- After the notice, if within prescribed period objections are raised, then it is to be communicated to the concerned department.
- If no objections are filed, then the authority will proceed further and review the application.
The validity of a Liquor License
Liquor License needs to be renewed annually, and this means liquor license renewal price is to be paid. Any person who wants to renew a license has to apply for renewal before 30 days from the date of expiry and pay the liquor license fee for renewal. The application has to be accompanied with CHallan, evidence of payment of application fee of R. 25/- and the liquor license renewal fee fixed by the State Govt. from time to time.
How much is the cost of Liquor License in India?
The cost of getting a liquor license is different for different states. For example, for Navi Mumbai, the cost for a license is Rs. 10,000 for above 100 members and Rs. 7000 for below 100 members.
According to the Excise Department rules, FL-4 License is required for serving liquor at a private flat or resort. The average costing is Rs. 13,000 for getting a liquor license. Consumers must have this license to have a house party. Those who don’t have license need to book a house party organizer who has permission to serve liquor. Serving liquor license cost for permit rooms is Rs. 544,000 and that for beer shops or for restaurants is Rs.150000.
How does LawyerINC help to get a Liquor License?
Applying for a liquor license is a lengthy and troublesome process. There have been many cases where the hotels have faced heavy penalty and have even shut down due to failure to provide a license.
Furthermore, the Indian government keeps on changing the rules for a liquor license, and it differs from State to State. So, one needs to consult a professional for precise guidance for getting a liquor license.
Here at LawyerINC, we have a perfect blend of experts who will cater to all your needs and help you get a liquor license.
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