If you want to sell alcohol in India then apply and obtain a license for it. Everyone, be it liquor vends or restaurants they must apply for a liquor license online or offline. Without the valid license engaging in selling liquor can you land you in legal soup. In this write up, let us go through the procedure in getting a liquor license in India, and the method of applying for it.
Why do you Need Liquor Liquor?
The license happens to be a consent given by a State’s Excise Department that permits people to manufacture, transport, and sell alcoholic beverages within the state. Hence, it regulates these activities within the state:
- Businesses allowed to sell and market alcohol
- Time and place to sell alcohol
- Amount of alcohol to be sold at a time
- The charge fixed for the purchase of alcohol
- Kinds of liquor that may be sold
- Who to give the liquor for money
- Businesses permitted to manufacture, distribute and have alcohol
It is to be noted that the sale, distribution, and manufacture of liquor fall under the ambit of the State List according to the seventh schedule of the Constitution. Therefore, the state governments have jurisdiction over the rules and regulations framed within their jurisdiction. Resultantly, several states have diverse laws regarding the sale and manufacture of liquor. The chief laws controlling the sale and consumption of alcohol in India are as follows;
- Article 47 of the Constitution
- Licensing Act 2003
- Delhi Excise Act, 2009 and Excise Rules, 2010
- Punjab Excise Act, 1914
- Uttar Pradesh Excise Act, 1910
- Bengal Excise Act of 1909
- Goa Excise Duty Act, 1964
- Bombay Prohibition Act of 1949
- Karnataka Excise Act, 1965
- Tamil Nadu Liquor Rules, 1981
Kind of liquor licenses in India
Beer and Wine License – For entities who want to sell only light alcoholic beverages, such as beer and wine. Also these businesses are not allowed to deal with hard liquor.
Restaurant Liquor License –For restaurants wanting to provide alcohol and pertain to establishments earning less than 40% of their total income via liquor sales.
Tavern License – For entities whose liquor sale constitute over half of their profits
Brewpub License – For establishments who brew their own wine and beer.
Temporary License – To offer liquor at a party or event in a town with less than 20 lakh people.
FL-4 License – For those who seek to serve alcohol at private parties within a private resort or apartment.
L1 – Needed for the wholesale supply of Indian liquor
L3 – Allows hotels to offer foreign liquors to guests in hotel rooms, while the L5 permits hotels to offer liquor in bars or restaurants within the hotel premises.
L6 – For the retail vendors of Beers and Indian Liquors.
L19 – Permits clubs to offer foreign alcohol.
The ways to apply liquor license in India
- As each state has their own liquor laws, it is imperative to consult an expert prior to making the first move to avoid legal hassles later. But, this is the usual process in getting a liquor license in India.
- Go through the State Excise Department’s official website to familiarize with the process. You can even visit their office or the office of another licensing authority to get some insight into what is expected.
- After getting an idea about the methods involved, decide about the kind of license you require.
- Then, obtain the needed documents to initiate the application process.
- Download the application form for your type of license from the State Excise Department’s website.
- Fill the form with the requisite particulars and attach relevant documents wherever necessary.
- Some of the details you must describe include your place of business, personal information, and the type of liquor you want to sell.
- Furnish the filled form to the relevant authority and provide the requisite application fee. The authority will then evaluate all the particulars given. They can even visit your business premises to see whether things are as per laws or not. If they find any anomaly, they can seek additional documents, which has to be provided.
- After the verification process, a notice will be put up regarding your business on your premises. This is to inform the locals regarding your new business. In case they want to put any kind of objections, they can do so within a specified period, and you need to convince them why your business will not be an obstacle to them. If there are no further objections, the authority can provide you with a Liquor License, and you can start functioning.
Cost of liquor license in India
As the liquor regulations differ from state to state, the expense of getting a license also sways based on your location of business. Also, the expense of getting the license hinges on the type of license you desire and the size and nature of your business. But, given below is a run down on the average liquor license cost in India.
Temporary License – To offer liquor at a party or event in a town with less than 20 lakh people, you should pay either :
- INR 7,000 if you want to offer liquor to less than 100 people
- INR 10,000 if you want to offer liquor to over 100 people
- FL-4 License – INR 13,000.
Serving Liquor in Rooms – To provide alcohol in a restaurant, you must pay either;
- INR 5,00,000 for serving only in rooms
- INR 1,50,000 for serving in a beer shop or restaurant
- State Liquor License – Anywhere between INR 5000 and INR 15,000
Documents needed for a liquor license application
- Applicant’s Identity Proof and Address proof
- Address proof of the business premises
- NOC from the State fire department
- NOC from the concerned municipal corporation
- Duly filled Application form
- MoA and AoA of companies, if applicable
- Latest ITR copy
- Applicant’s passport size photograph
- Affidavit substantiating no criminal records in the applicant’s name
- Affidavit declaring the applicant has no pending dues in their name
How can we Help?
The team of legal experts employed with us can offer you the assistance you need. We have the ability to guide you regarding the licenses and registrations procedures needed to begin such a venture. Our lawyers have the ability to help you with all required documentation. Also, we offer services regarding incorporation, permitting you to register your business swiftly and efficiently. Finally, our team will assist you get all other licenses and tax registrations you require to turn your business fully compliant.