Apply for Bar License in India

Types of Bar Business Models in India

Starting a bar involves more than just serving drinks—it’s about curating an experience. The type of bar a business owner decides to establish depends on various factors such as available capital, targeted clientele, location, ambiance, and even the skillset of the staff. Each bar model comes with its own operational style, investment requirement, and customer expectations. Below are the most popular types of bar business models that entrepreneurs can consider in India:

Lounge

A lounge is considered an upscale and sophisticated type of bar. It is known for its elegant interiors, ambient lighting, plush seating, and calm atmosphere. Lounges focus heavily on comfort and class, often appealing to the higher-income group. Drinks in lounges are priced on the higher side and are typically served with premium service standards. Many lounges also offer curated cocktail menus, bottle service, and soft music—ideal for formal meetups or relaxed evenings. The investment in décor, furnishings, and trained staff is relatively high, but so is the potential return due to higher pricing and exclusive clientele.

Tapas Bar

A Tapas bar serves not only alcoholic beverages but also a variety of light snacks and appetisers, popularly referred to as ‘tapas.’ This concept, originating from Spain, has been gradually gaining popularity in metro cities across India. These establishments emphasize food pairings with drinks, making them ideal for food lovers who also enjoy casual drinking. They typically have a cozy, intimate setting and attract groups looking for a complete dining and drinking experience. The investment needed for such bars includes kitchen infrastructure, skilled chefs, and a versatile food and drinks menu.

Pub

Pubs—short for Public Houses—are one of the most common and traditional types of bars. They are known for their laid-back atmosphere, moderate pricing, and a broad customer base. Pubs serve alcoholic beverages, a range of comfort foods, and often play music to create a friendly and casual vibe. Pubs are a go-to place for office-goers, students, and working professionals who want to unwind after a long day. Investment in a pub can range from moderate to high depending on the location, theme, and target clientele.

Sports Bar

A sports bar caters specifically to sports enthusiasts. These bars are equipped with large TV screens or projectors that telecast live sports events like cricket, football, and tennis matches. The interiors are often themed with sports memorabilia, and the atmosphere is energetic and lively. The main attraction here is watching matches with a group of like-minded people while enjoying drinks and food. Such bars see peak footfall during tournaments and major sporting events. To succeed, owners must invest in multiple screens, subscription to sports channels, and a vibrant menu that supports long hours of stay.

Nightclub

Nightclubs are bars that come alive in the late evenings and operate till early morning hours. Besides serving alcohol, nightclubs are entertainment hubs that include DJ music, live performances, dance floors, and sometimes comedy shows or special themed nights. These establishments require a high investment in lighting, sound systems, bouncers, and crowd management. They usually attract younger audiences who are looking for a vibrant party scene. Due to the extended operating hours and live entertainment, nightclubs also require multiple licenses, including a Bar License, performance permissions, and more.

Concert Bar 

A Concert Bar is a bar that centers around live music performances, DJ nights, or band shows to attract large crowds. These bars combine entertainment with liquor sales, making them highly profitable during events. They require investment in sound systems, stage setups, and multiple licenses, including a Bar License. The lively atmosphere makes them popular among music lovers and partygoers.

Note: Each of these bar models caters to different market segments. Whether you’re going for the exclusivity of a lounge, the sociability of a pub, or the excitement of a nightclub, proper planning and legal compliance—including obtaining the mandatory Bar License—are important for success.

Different Classes of Liquor Licenses in India

When starting a bar, restaurant, or any establishment intending to sell alcohol in India, it is important to understand the different types of liquor licenses available. These licenses are issued by the State Excise Department and vary based on the nature of the business, the kind of alcohol served, and the proportion of revenue generated from liquor sales. Below are the main classes of liquor licenses that are commonly issued across various states:

Beer and Wine License

This license allows the establishment to serve only mild alcoholic beverages, specifically beers and wines. It does not authorize the sale of hard liquor such as whiskey, rum, vodka, gin, or any other spirits with higher alcohol content. Businesses like cafes, bistros, or small restaurants often apply for this license when they want to offer light drinking options without entering the full-scale liquor market. Since the license is limited to low-alcohol beverages, the fee structure and regulations are generally less stringent compared to licenses involving hard liquor. However, compliance with age restrictions, service hours, and food service conditions remains mandatory.

Brewpub Liquor License

A brewpub license is granted to establishments that wish to produce their own beer or wine on-site. This type of license enables the holder not just to serve alcohol, but also to manufacture it within the licensed premises. Brewpubs typically operate as microbreweries, offering freshly brewed craft beer to customers. The license holder must follow excise rules regarding the quantity of production, quality control, and hygiene standards. Additionally, the brewed liquor is generally intended for sale only within the premises and cannot be bottled or distributed externally without separate permissions. This license is popular in urban areas where there is a growing demand for locally brewed beverages.

Tavern Liquor License

The tavern license is issued to businesses where more than 50% of total revenue comes from the sale of alcoholic beverages, even though food is also served. It is typically granted to pubs, bars, and nightclubs that focus primarily on liquor sales as their main income stream. These establishments operate late into the night, attract a crowd focused on drinking and entertainment, and often require additional approvals related to music, crowd control, and security. The tavern license comes with strict monitoring of alcohol sales ratios and may involve higher fees and more frequent inspections by excise officers.

Restaurant Liquor License

Often referred to as an “All Liquor License,” this is suitable for full-service restaurants that wish to offer a range of alcoholic beverages alongside food. However, the key condition here is that the sale of alcohol must not exceed 40% of the total revenue generated by the establishment. This license is typically sought by fine dining restaurants, cafes, and upscale eateries where alcohol complements the dining experience rather than dominating it. The restaurant must demonstrate that its primary business is food service, and liquor is only a supplementary offering. Regular reporting and proper bill segregation between food and liquor are required for compliance.

Each license class is governed by specific rules, and failure to comply may lead to penalties or suspension of the license. Therefore, choosing the right license based on the business model is essential for lawful and successful operations. To apply for any of these licenses, detailed documentation, site verification, and clearance from local authorities are required.

Compliance Calendar LLP assists in obtaining all types of Bar Licenses across India. For expert consultation, reach out via email at info@ccoffice.in or Call/WhatsApp at +91 9988424211.

Types of Liquor Licenses in India

In India, the sale and distribution of alcohol are regulated by state excise departments, and each state has its own system for issuing liquor licenses. These licenses differ in their purpose, usage, and the type of establishments they are granted to. Among the various classes of liquor licenses, the following types are some of the most commonly issued and significant in terms of usage and coverage.

L1 License – Wholesale Supply License

The L1 license is issued to individuals or entities involved in the wholesale supply of Indian-made foreign liquor (IMFL). This license permits the holder to supply alcoholic beverages in bulk to other license holders such as retailers, bars, or clubs. It is not meant for serving alcohol to end consumers, but rather plays an important role in the distribution chain. Entities applying for this license must have proper warehousing facilities and comply with record-keeping and excise duties as specified by the state government. This license is mostly sought by liquor distributors and wholesale businesses.

L3 and L5 Licenses – Hotel Liquor Licenses

The L3 license is issued to hotels that are classified under star ratings and are approved by the Department of Tourism. It permits the hotel to serve foreign liquor to guests residing in the hotel rooms. The primary condition for this license is that the hotel must meet specific infrastructure, security, and service standards. The liquor can only be served to in-house guests, and the service is usually limited to the room or designated lounge areas.

The L5 license complements the L3 license and allows hotels to serve liquor in their in-house restaurants, bars, or banquet halls. With this license, hotels can serve both Indian and foreign liquor to guests and walk-in customers within the designated premises of their food and beverage outlets. The L5 license is crucial for star-rated hotels that want to offer a complete hospitality experience to their customers.

L19 License – Club Liquor License

The L19 license is granted to clubs that are registered under the Registrar of Firms or the Registrar of Co-operative Societies. This license allows clubs to serve foreign liquor to their registered members. The key restriction here is that liquor can only be served to members and not to the general public. Clubs must maintain a list of registered members and ensure compliance with regulations concerning age limits, timings, and responsible alcohol service. This license is common among sports clubs, recreation clubs, and exclusive member-only associations.

L49 License – Event Liquor License

The L49 license is one of the most commonly obtained licenses due to its simplicity and short-term validity. It is granted for serving alcohol at private events such as marriage receptions, birthday parties, corporate functions, or any other social gathering held at a specific venue. This license allows the holder to legally serve liquor at such functions without breaching excise laws. It is usually valid only for the duration of the event and is specific to the venue. The application process is relatively straightforward, requiring fewer formalities and quicker approvals compared to commercial licenses.

L6 License

Granted exclusively to government undertakings like DTTDC, DSIDC, DSCSC, and DCCWS for the retail vending of foreign liquor and beer through authorized liquor shops.

L9 License

Allows private entities to retail both Indian and foreign liquor brands. It was previously referred to as L52D and is subject to specific state excise conditions.

L10 License

Similar to the L9 license, L10 also permits the retail sale of Indian and foreign liquor but with different compliance and operational norms prescribed by the excise authority.

L15 and L16 Licenses

These are granted to hotels catering to tourists, allowing them to serve liquor in guest rooms or restaurants, provided they meet infrastructure and tourism department norms.

L17 and L18 Licenses

Applicable to star-rated hotels approved by the Department of Tourism, these licenses allow serving liquor in restaurants and bars within commercial areas meeting zoning and parking requirements.

L28 License

Issued to private clubs registered under the Registrar of Firms or Co-operative Societies, this license permits serving foreign liquor only to registered members.

L29 License

Reserved for non-commercial, government-run clubs or messes, this license allows serving liquor to government employees without adhering to regular commercial excise norms.

P10 and P13 Licenses

Temporary licenses granted for serving liquor at private functions, weddings, or corporate events. Valid for a limited duration at a specific venue.

These liquor licenses cater to different business models—whether it's wholesale, hospitality, private events, or exclusive clubs. Understanding the exact nature and use of each license is vital for legal compliance and business success. While the list above includes some of the most commonly issued licenses, it is not exhaustive. There are other licenses with specific terms depending on the type of alcohol, region, and usage.

Compliance Calendar LLP can assist you in selecting and obtaining the right type of liquor license at the time of obtaining Bar License for your needs across India. For guidance and support, book a consultation via email at info@ccoffice.in or Call/WhatsApp at +91 9988424211.

Main Licenses Required to Open a Bar in India

Opening a bar in India is not just about setting up an attractive space and serving alcoholic beverages—it involves obtaining a series of licenses to ensure that your business is legally compliant. Among these, the most important is the Bar License, which legally permits the sale and service of liquor at your premises. However, it is not the only one. A successful and lawfully operating bar requires multiple approvals from various departments at both the state and local levels. Below is a detailed explanation of the key licenses and permits you will need to open a bar in India.

1. Liquor License

The Bar License is issued by the State Excise Department and is the primary license required to serve alcoholic beverages in any bar, pub, or restaurant. Since liquor laws vary across states, the type of bar license, its cost, and application process will differ. Common types include L1 (wholesale supply), L3/L5 (for hotels), L19 (clubs), and L49 (event-based). You must specify the type of alcohol to be served—Indian-made foreign liquor (IMFL), beer, wine, or foreign liquor. This license is mandatory and must be renewed annually. Serving alcohol without it can result in heavy penalties and shutdown of the business.

2. FSSAI License

If your bar plans to serve food alongside drinks, you must obtain a Food Safety and Standards Authority of India (FSSAI) license. This certifies that your establishment adheres to hygiene and food safety standards. The FSSAI license is essential for bars that offer full dining services or snacks to customers, which is common in most urban bar setups.

3. Trade License

A Trade License is issued by the local municipal authority and gives you the legal right to operate your business within a specific area. This license ensures that the business complies with safety, hygiene, and public health regulations. It must be obtained before the commencement of operations and is subject to annual renewal.

4. Fire Safety Certificate

Bars often operate in enclosed spaces with crowds, which increases the risk of fire-related incidents. You must obtain a Fire Safety Certificate from the local fire department after installing all necessary fire safety equipment such as fire extinguishers, alarms, and emergency exits. This certificate is mandatory for compliance with safety norms and is critical for customer protection.

5. Environmental Clearance (Pollution NOC)

If your bar includes loud music, a dance floor, or DJ events, you will require a Noise Pollution NOC from the local pollution control board. It ensures your bar adheres to noise level regulations and does not disturb nearby residential areas.

6. Shops and Establishment Registration

Every commercial establishment in India is required to register under the Shops and Establishment Act applicable to the respective state. This registration governs employee working conditions, hours of operation, and holiday entitlements.

7. GST Registration

If your annual turnover exceeds the prescribed limit (currently ?20 lakh for services), you must obtain a GST registration. It allows you to charge GST on food and beverage services and claim input tax credit on your purchases.

Benefits of Bar License in India

The following are the benefits of obtaining a Bar License in India:

Legal Authorization to Serve Alcohol

A Bar License grants legal permission to serve alcoholic beverages on your premises. Without it, selling liquor is considered illegal and may attract hefty fines or even business closure by authorities.

Builds Customer Trust and Reputation

Operating with a valid Bar License signals professionalism and legal compliance. It enhances the credibility of your establishment, encouraging customers to choose your bar over unlicensed or shady venues.

Enables Expansion of Business Offerings

With a Bar License, you can legally serve a variety of alcoholic drinks such as beer, wine, and spirits, helping you expand your menu. This leads to increased footfall and higher overall sales, especially in nightlife-driven locations.

Compliance with State Excise Laws

Holding a Bar License ensures your business is in compliance with excise regulations set by the state. This helps avoid legal disputes, penalties, or seizure of goods and protects your bar’s long-term viability.

Access to Wholesale Liquor Purchase

Licensed bars can purchase alcohol in bulk from authorized suppliers at wholesale prices. This reduces procurement costs and allows for better profit margins on every sale made at the bar.

Eligibility for Event and Club Licensing

A valid Bar License can help you apply for additional permits like event-specific licenses or club licenses. This flexibility lets you host private parties, live performances, or themed nights legally, attracting more customers and boosting revenue.

Eligibility Criteria for Bar License in India

Obtaining a Bar License in India is a mandatory legal requirement for any individual or business wishing to serve alcoholic beverages at a commercial establishment. However, not everyone is eligible to apply. The State Excise Department outlines specific eligibility criteria that applicants must fulfill to qualify for the grant of a Bar License. These criteria ensure that only qualified, law-abiding individuals and entities are permitted to sell and serve liquor in a regulated environment. Although the exact requirements may vary from state to state, the following are the common eligibility conditions observed across India:

Minimum Age Requirement

The applicant must be a legal adult, usually 21 years of age or above. In some states, this age limit may be 25 years. The applicant should not have any criminal background, particularly relating to excise violations or illegal alcohol dealings.

Legal Entity Status

The applicant can be an individual, a partnership firm, a private limited company, or a public limited company. If the application is made on behalf of a business, the entity must be legally registered and have valid proof such as a certificate of incorporation, PAN, GST registration, etc.

Valid Business Premises

The bar must be located on legally owned or leased premises with proper documentation. The location must comply with local zoning laws, and it must not be within a restricted distance from educational institutions, places of worship, or residential colonies as per the respective state excise policies.

Tourism or Hospitality Approval (If Applicable)

In cases where the bar is part of a hotel or resort, approvals from the Department of Tourism may be required. For licenses like L3 or L5, the hotel must be classified under star ratings and meet specific infrastructure standards.

Fire and Safety Compliance

Applicants must ensure the bar premises are compliant with fire safety norms. A Fire Safety Certificate from the local fire department is mandatory to prove that the location is safe for public operations.

Police Clearance Certificate

Some state authorities also require a Police Clearance Certificate to ensure the applicant has no criminal record and the proposed establishment will not be a threat to public safety.

Tax and Compliance Records

The applicant must not have any pending tax dues or history of non-compliance with previous licenses. Clean financial and legal records strengthen the chances of approval.

Types of Liquors Permitted in India

In India, the liquor industry is regulated under state-specific excise laws, and only certain types of liquor are permitted for sale and consumption, provided the establishment holds a valid Bar License. The two primary categories of alcoholic beverages permitted are:

Indian Made Foreign Liquor (IMFL)

IMFL refers to spirits such as whiskey, vodka, gin, brandy, and rum that are manufactured in India using the same methods as international brands. Despite being locally produced, these liquors match the standards of global products in quality and branding. They are widely consumed due to their affordability and local availability.

Imported Foreign Liquor (IFL)

IFL includes premium liquor brands manufactured and bottled outside India and then imported into the country. These include high-end whiskeys, tequilas, wines, and vodkas. Due to import duties and taxes, IFL is usually priced significantly higher and caters to a premium segment.

Country Liquor (Desi Daru)

This is a low-cost alcoholic beverage made with local ingredients such as sugarcane, grains, or fruits. Its sale is usually permitted in rural or semi-urban regions and is subject to strict regulation. Bars typically do not serve country liquor.

Beer and Wine

These are classified as mild liquors and are widely permitted for sale in restaurants, bars, and retail outlets with specific beer and wine licenses.

Having the right Bar License is essential to legally serve these types of liquor in India.

Documents Required for Bar License

Applicants need to submit a list of documents along with the application form:

• Identity and address proof of the applicant
• Address of the business premises
• No Objection Certificate from the landowner (if rented)
• Rent Agreement
• Site plan and layout of the bar
• Certificate of Incorporation, MOA, AOA (for companies)
• Partnership Deed (if applicable)
• NOC from Fire Department
• Prescribed Application Form
• Completion certificate of premises
• FSSAI License
• Trade License
• Eating House License
• Photographs of the business premises
• Affidavit stating no criminal background or dues
• Undertaking for installation of CCTV and other facilities
• Shop and Establishment Act License
• Fire Safety Clearance
• Lift Clearance (if lift installed)
• Music License (if music is to be played)
• Environmental Clearance from Pollution Board
• License from Municipal Corporation
• GST Registration Certificate

Procedure for Obtaining a Bar License in India

Step 1: Determine License Type

The applicant must first understand what type of bar and liquor license is required. This depends on the business model, size, and services offered.

Step 2: Application Filing

Once the license type is finalized, the applicant needs to fill out the prescribed application form available on the Excise Department’s portal. All required documents must be attached, and the applicable fee must be paid.

Step 3: Inspection & Verification

After submission, the authorities will conduct a physical inspection of the premises and verify the information provided in the application.

Step 4: Public Notice

If the application is found satisfactory, a public notice is displayed on the premises. This gives an opportunity for the public to raise any objections.

Step 5: Resolution of Objections

If no objections are raised, the license is approved. In case of objections, the applicant is given a chance to present their side and provide justifications.

Step 6: Grant of License

Once all objections (if any) are cleared, and the verification is complete, the license is granted. The Bar License is valid for one year and must be renewed annually.

Renewal and Cancellation of Bar License

The license holder must apply for renewal before the expiry date using the prescribed renewal form and paying the required fee. Failure to comply with the rules or involvement in illegal activities, including selling liquor to minors or during dry days, can lead to license cancellation.

Compliance Calendar LLP Assistance in Bar License Registration

Obtaining a Bar License is a detailed process and may be complicated without expert help. Compliance Calendar LLP offers step-by-step guidance to applicants. Their services include:

• Plan selection and query resolution
• Document checklist and preparation
• Application drafting and filing
• Addressing objections and follow-ups
• Ensuring procedural compliance