Bar License

With the rise in the levels of disposable incomes and growing urban economies, Statista recorded that alcohol consumption in India amounted to about five billion litres in 2020 and was estimated to reach about 6.21 billion litres by 2024. The increase in consumption of these beverages is even due to the emerging forms of liquor, including Indian-made Indian Liquor and Indian-made foreign liquor. This category was introduced, despite the existence of beer or wine. 

Obtaining this license for setting up this business ensures success in the thriving industry. Whether you are a beginner or a seasoned professional, it is vital to understand the procedure and take the necessary steps to have a bar license. By doing so, you should not let a lack of knowledge hinder your bar’s real potential. It is with the knowledge or approach that you may receive the license as you set the stage for success. 

Let us have a look at what bar license has in store for the applicants. 

What is meant by Liquor License?

It is duly noted that any restaurant or establishment that wishes to serve liquor in India, must have a license. Without it, your business will get hampered, leading to any legal troubles or repercussions. To avoid this, you should get a liquor license registered. 

Additionally, business owners must understand that liquor laws vary from state to state, which requires the intervention of the concerned authorities to encourage them to stay compliant in the process. 

You must seek assistance from a legal expert to comprehend the liquor laws, and then seek the appropriate licenses.

Why Do We Require The Bar License?

To get into the depths of the reason why bar license exists, we ought to pay heed to the processes of sale, manufacture and distribution of alcoholic beverages within the set boundaries. Regardless of the business size, if it sells alcoholic drinks from restaurants or stores, one must apply for this license. 

The liquor/bar license acts as a testament to ensuring that safety is maintained and wholeheartedly fulfilled. Those who do not possess this license from the required authorities, such as the division of alcohol or tobacco control, are not permitted to manufacture, distribute or sell liquor drinks. Any individual without a permit cannot sell the liquor unless he acquires the permission. 

Irrespective of age, individuals from different walks of life are heavily inclined towards alcohol consumption, which has become a trend now. This is especially common amongst the growing age group, who are becoming the consumers of the same. By doing so, it is imperative to acknowledge the selling of the liquor, via a verification system by ensuring that it does not fall into the wrong hands or acts, including the inappropriate selling of liquor drinks.

It is even noted that due permission is required for the sale of liquor from a respective state. Accordingly, each state has its own rules and regulations, that vary (according to different states) for mainly those that are willing to sell beer, drinks or wine. Accordingly, the state’s excise department even issues some specific licenses, which are mainly for the various types of liquor stores. 

The liquor license is a must-have for organising parties, restaurants or hotels. This process has shifted online, making it easier and more effective. It is as per the notice issued in October 2017 by the excise department of the Delhi Government.

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 is granted to the wholesale supply of Indian liquor. Its 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 Licenses: 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.

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 premise 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.

As a result of the liquor license, you are required to follow the compliance requirements, without being able to ignore them. By being ignorant, you attract multitudes of problems, including penalties or fines. Therefore, you must seek licenses, to operate within the specified protocol, rather than being the contributors to this breach of law. 

Let us have a glance at the advantages of a Liquor License 

• Ensures legal compliance

It is common to our understanding that operating a bar serving alcohol without a license is an illegal offence in most jurisdictions. It is by obtaining the license, which you ensure that you are operating within the supervision of the law. As a result, it not only protects you from legal issues but assures your customers that the alcohol is licensed.

Therefore, compliance breeding on legal requirements is necessary for the success and longevity of your business.

• Improved professionalism 

It is the bar license that is evidence of the sense of professionalism along with the credibility of your profile. It represents that the potential employers have undergone the respective training and adhered to the standards of serving alcohol. Such a thing boosts your chances of gaining employment and attracting clients who value expertise and professionalism.

• Networking opportunities

Bar license in a way represents the opportunity to attend training programs as well as the opportunity to collaborate with professionals and industry experts. It is important to build a network that exposes you to new avenues of mentorship and collaboration. 

Therefore, such are the benefits of the liquor license along with the reasons why having this license ensures compliance for bars or restaurants serving alcohol. 

Classes of Liquor Licenses 

The classes of liquor licenses are as follows-

• Beer and Wine License 

The Beer and Wine License is held by those who sell the mild and sold liquors. The same does not apply to the hard liquor whatsoever. 

• Brewpub Liquor License

This License allows the holder to manufacture one’s beer and wine. 

• Tavern Liquor License

It talks about the businesses that make as much as 50% of the alcohol sales, regardless of the offered food that are granted the tavern Liquor License.

• Restaurant Liquor

It is referred to as a Bar and restaurant license permitting the sale of alcohol within the premises. Moreover, this license applies to those restaurants that serve alcoholic beverages, besides their main business of food items. Accordingly, it should not exceed more than 40% involved in the business sales.

The documents required for a Liquor License are as follows-

• Company registration or incorporation certificate
• Proof of address of the business premises
• Completion certificate of the restaurant or bar
• Trade license
• Eating house license registration from the District Commissioner of Police
• New GST registration
• NOC from the state fire department
• Affidavit ensuring the applicant has no outstanding dues or criminal history.

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.

• Licenses 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

To apply for the Bar License, the following are the steps that are to be followed to obtain the same-

Step 1:- Connect with the Corpseed team

Firstly, contact Corpseed as your one-stop solution provider. 

Step 2:- Meet Our Experts 

Secondly, Corpseed will align a dedicated professional to help you with the Bar License.

Step 3:- Application Form 

Thirdly, our officials will help you with the application form, where you will need to add the relevant details and submit it to us. The requisite fee will be paid by us on your behalf to the concerned authorities.

Step 4:- Document Submission

It is per the type of license that the documents for the same would vary. Nevertheless, quite a few documents are somehow common, such as identity proof, Address Proof, Fire NOC Municipal Corporation, etc. 

Step 5:- Submission 

Once you have successfully submitted the application form with the required documents, we will verify the same with the licensing authority. While doing so, the licensing authority also holds the power to seek the necessary information, as the case may be. 

Step 6:- Issuance of Public Notice 

In this step, once your application is found in the proper order, the authority might issue the notice, which would be shared with you by us. 

Step 7:- Granting License

If there are no objections found, the application would then be granted. But, in case of the raised objections, the applicant will be able to use his rights and defend himself against any such raised objection. 

The validity period of the license is 1 year, which can mainly be extended or renewed annually with the renewal application form. Accordingly, we even help you pay the renewal fee given to the authority. 

Hence, such is the process for applying for the bar license. 

Who can apply for Personal Bar License?

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.

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.

At Corpseed, we emphasize BAR License and acknowledge its profound significance and the substantial impact it can have on businesses in India. Adhering to the regulations and requirements is essential for seamless operations and long-term prosperity. We fully comprehend the intricate complexities and hurdles that entrepreneurs encounter when manoeuvring through the legal landscape. Our seasoned experts have extensive knowledge and expertise in obtaining licenses, enabling us to offer comprehensive guidance and unwavering support to our clients.