The knowledge of the liquor license is really important for bars, restaurants, hotels, and clubs that serve or sell alcohol in India. But liquor license processes and fees differ with respect to several other things, the type of liquor license the applicant applies for, and the state or Union Territory it lies, the type of business etc. Therefore, let us knowhow much does liquor license cost in India.
What is a Liquor License?
- The liquor is something more than being just a beverage found at parties, events, hotels, or restaurants. Liquor is regulated by all state governments since this is highly related to criminal offenses and other violent happenings.
- Therefore, state governments grant the licenses for regulating and regulating liquor brewing, manufacturing, and selling of this intoxicating liquid. The liquid license is a must for manufacturing, importing, exporting, transporting, possessing, buying, and selling liquor or alcohol products.
Types of Liquor Licenses
- Retail Outlet License:This license enables the holder of a liquor shop to sell wine directly to the consumers.
- Wholesale License: A wholesale license validates the proprietor of a wine shop to wholesale liquor to other restaurants or for distribution to other merchants.
- Production License: This is issued if the liquor shop owner is producing wine on the authorized premises.
- Beer and Wine Shop License: It is a license that gives permission to sell drinks of the intermediate alcoholic content like beer and wine.
- Tavern Liquor License: Those businesses with 50% of wine sales revenue require this license.
Required Registrations for Liquor License
License is required to sell liquor. The holder of this license may sell liquor at the licensed place, adhering to the local safety regulations.
- Shop and Establishment Registration:Any establishment selling liquor must have the shop and registration, which is to be obtained by the owner from the concerned labour department of the state. The shop's working hours, weekly holidays, leave policy, hiring of children, and other factors are all governed by this license.
- Business and Trade License:The municipal corporation's licensing department is where the store owner must get the license. With this license, the owner of the shop may start selling liquor with safety introduced by local government.
- Company Registration: The liquor businesses need to be registered with the government. So, before a liquor shop is established, the owner must register it as either a sole proprietor, a partnership firm, or a limited liability partnership.
New Liquor License Cost in India
Before the liquor establishment can start their business, the proprietor or owners need to make the necessary registration of the liquor unit.
Cost for Private Party in Resort or Flat:
There has to be a fee that liquor shops or establishments are going to pay to the state government for getting a new liquor license. The liquor license fee is dependent on the type of liquor license, place, and the size of the business. The expensive liquor license fees are gradually raising barriers for new entrants in state. The details in the application are:
- The party's date and time
- The party's location
- Number of expected guests for the celebration
- Types of liquor that will be served at the celebration
A license fee must also be paid by the party planner. Generally, it ranges from ₹10,000 to ₹15,000, depending a bit, of course, on the state where the party is.
The liquor license would be granted after the completion of the application and successful payment of all licenses and fee deposits. Based on these grounds, the license mentions the date, venue, time of the party, types of liquor to be served, and the maximum number of guests.
Cost for Permit Rooms:
Liquor licenses for permit rooms across states in India vary in cost. However, the issue of a liquor license means that you need to sell liquor between ₹50,000 and ₹100,000. Permit room owners have to deposit additional regulatory fees, which again vary from region to region.It is between ₹50,000 and ₹1,00,000.
Besides the liquor license, the permit rooms also need to have other licenses and permits, including health and fire safety permissions. This has its own price determined by each state.
Some requirements based on which liquor license is issued to a permit room in India include:
- The applicant needs to be at least 21 years old
- Should have possession of a current business license
- Should have evidence of liability insurance
- Should have proposed floor plan of the permit room, type of alcohol to be served, and security measures
The liquor license will be issued upon approval of application via an application process along with a license fee and security deposit. The license will specify the room, types of liquor, and time in which it can operate.
Cost for the State:
Few of these regulations govern the purpose, and fees at which the liquor licenses are issued; the range of issuance is from ₹5,000 to ₹15,000 in most of the states. Some factors through which the fees vary are license classification and type like retail, restaurant, wholesale, etc.
Why Cost is Required for Obtaining Liquor License?
- For Revenue Generation: In several states, liquor licenses are considered a great source of revenue for government. Revenue from liquor license fees can be redirected into several state programs, ranging from healthcare to education to infrastructure.
- Market for Regulation of Alcoholic Beverages: States decide how many outlets need to sell alcohol through licensing. This can help keep public intoxication and drunk driving, and other alcohol-related issues away without making the market suffer.
- Monitoring State Laws and Regulations on Liquor: Obtaining a liquor license provides a local regulatory authority to govern liquor laws and regulations. If there is a proof that a bar is serving an anyone who is below age, specific penalties may involve the suspension or the total revocation of liquor licenses against such a bar.
- Cover Regulatory Expenses for Alcohol: Regulatory enforcement should become labour intensive and costly in the liquor industry.States charge to pay for the cost of liquor laws enforcement, inspections, and investigations on alcoholic offenses.
Conclusion
All such applicants should be aware about the costs involved in getting a liquor license in India of their choice of state and regulations related to the licenses. This differs according to the provisions in the state laws and the type of license that is needed. You can plan your investment and make wise decisions if you are aware with the types of liquor licenses.
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