Introduction To Bar License

If one wants to operate a bar, he'll need to apply for a bar license.

A bar license allows you to sell alcohol for consumption on the licensed premises, but it does not allow gaming or take-away liquor. This liquor license allows a maximum of 100 customers, over the age of 18, on the premises during trading hours. 


Bar Business Models


There are different kinds of bars one can set up. Each type of bar needs a different kind of set up, management style, financial backing, etc. One has to decide the type of bar that suits his interest and makes him feel confident about running it successfully.

  • Lounge
  • Tapas bar
  • Pub
  • Sports bar
  • Night Clubs
  • Concept bar


Types of Liquor License

Various types of licenses are issued by each state government. Any individual or company can get the following licenses:


Grant of L-1 license - For the purpose of wholesale supply of Indian Liquor: The government of NCT of Delhi once a year formulates policies for grant of this license in pursuance of which it's granted to the wholesale supply of Indian liquor. It’s granted to Company or a society or a partnership firm or proprietorship firm having licensed manufacturing units (distillery / brewery /winery/bottling plant).

  • Procedure for application of this license: The govt. invites applications by issuing a public notice during a leading newspaper and on the official website of the Govt.
  • The prime job of L-1 Licensee is to provide liquor to the holders of Licenses of L-6, L-7, L-9, L-10, L-12, L-13, L-14, L-15, L-16, L-17, L-18, L-19, L-20, L-21, L-28, L-29 and other liquor licenses within the capital Territory of Delhi.
  • The holder of L-1 license has got to suits all the terms and conditions mentioned within the license contract.

Grant of L-3/L-5 Licences: For hotels: Such license can be granted for hotels, which are holding star classification and the approval from Tourism Department of Govt. of India which is taken into account necessary for grant of License in form L-3.

  • L-3 license authorizes the hotel for offering foreign liquor to the customers in their rooms.
  • These hotels also can seek separate License in form L-5 for serving the liquor in exclusive bars and therefore the restaurants within the hotel premises.

Grant of L-19 License:For clubs: L-19 license can be issued to a club registered with the Registrar of Firms/Registrar of Cooperative Societies for facilitate of foreign liquor to its members.


6)Grant of L-49A license: Marriages, Parties etc, this license can be obtained on payment of Rs. 3,000/- for serving of liquor in any party, function, marriage etc. at a particular premises anywhere in Delhi exclusive of public parks subject to the following conditions.

  • The area should be away from public view.
  • Liquor should be served to adults above 25 years of age.
  • Liquor should be procured from authorized source in Delhi.


How To Select Right Location For Your Bar


Like other businesses, opening a bar also requires the right choice of location. The location of your bar can play a major role in inviting a larger number of customers Further, certain states require that a Bar be attached to a hotel with a minimum number of rooms and that Bars be situated at a certain distance from schools, places of worship, etc., Therefore, it is necessary to consult the State laws before choosing a location for setting up a bar


How To Apply for a Bar License


A Bar License is necessary for operating a bar. Therefore, before obtaining a Bar License, set up a company and apply for the bar license in the name of the company. If necessary, this will ensure that the Bar license is tied to a company and can be transferred to another person in the future.

Also, before you buy an existing bar or start your groundwork to set up a bar, you have to apply for a liquor license. Obtaining a liquor license is difficult and there is no guarantee that you might receive a license at all at the end of the day. Hence you have to wait, incorporate a company or register an LLP and fill out your license application form at least two to three months in advance. Once you have received your license then proceed with your bar set up.


License needed to Start a Bar


  • Business License. Before becoming a restaurant owner, you need to obtain this government-issued license. ...
  • Liquor License. ...
  • Foodservice License. ...
  • Employee Identification Number (EIN) ...
  • Food Handler's Permit. ...
  • Sign Permit. ...
  • Paperwork is Part of the Process.


How to get a Liquor License in India?


If you are planning to serve liquor in your bar then for that you have to get a liquor license first. The following are the steps you need to take for obtaining a liquor license-

  • Understand what type of Liquor license you required

Each state has its own rules and regulations for license. So you should first contact the local authority to find out about alcohol laws and the sale of license in your states.  Furthermore, some states have license quotas limiting the number of places that can sell alcohol within the state.

  • Understand the need of On- License or Off – License

There are two major types of liquor license required by premises that are selling alcohol

1. You will need an on- license if you intend to consume the liquor on the premises.

2. You will need an off-license if you intend to consume or sell the liquor on the premises


Specific class of Liquor License  to be obtained

In some states, you will need to apply for the very specific class of license depending upon the nature of the business and the nature of the liquor you intend to sell.

  • Tavern License - this license is required in some states by the businesses that offer food but make up to half of their profits through the sale of alcohol.
  • Beer and Wine- the bars and the restaurants may be granted a license to sell “soft” liquors like beer and wine.  After this license, the owner is not entitled to sell hard liquor like spirits.
  • Restaurants – Restaurants' license merely permits any kind of alcohol to be sold on the premises. The percentage of the region of alcohol is limited to 40%.


Time Limit For Getting a Bar Licence


The time for approving the application for a new liquor license or to transfer the license is about 60 days. And if you get approved then an additional 30 days or longer will be taken to receive the license.


Personal Bar license


You are not obligatory to have a personal licence to be in employment in a pub or other business that sells alcohol. Premises licensed to sell alcohol be obliged to have a nominated premises supervisor, who holds a personal license. The one exemption is a community premise that has successfully applied to waive the DPS requirement under section 41D of the act. Anyone who does not hold a personal license must be sanctioned to sell alcohol by a personal license holder. There is no such condition for the supply of alcohol in a members’ club.

Personal licenses permit you to sell alcohol on behalf of any business that has a premises license or a club premises certificate. The relationship is alike to the way that a driving license permits the driving of any car.


About Personal Bar license


The personal license is planned to ensure that anybody running or managing a business that sells or supplies alcohol will do so in a professional way. Once you receive your personal license, you can operate as the designated premises supervisor for any business that sells or supplies alcohol.


Who can Apply For Personal Bar Licence


In order to apply, you must be aged 18 years or over, and (in almost all cases) hold a relevant licensing qualification –

If you are applying for a personal license, you should obtain an accredited qualification first. The purpose of the qualification is to make sure that license holders are aware of licensing law and the wider social responsibilities involved in the sale of alcohol.


How to get Bar License?


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