A good location is useless if the space cannot get the licences you need. Before you sign, ask the owner and check the papers for each one below. Some problems can be fixed. Some cannot, and you only find out after paying the deposit.
Farhan signed a lease for his café in a residential building. The rent was good. Two months later, the housing society refused to allow a kitchen chimney on the outside wall. Without it, he could not cook. He had already paid the deposit and the first month's rent.
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Check these before you sign
1. Is the space allowed for commercial use? Ask for the papers that show the space can be used as a shop or restaurant. A flat converted into a shop may not qualify.
2. Can you get FSSAI registration or a licence here? Every food business needs one. The kitchen must meet the basic rules for water, drainage and cleanliness. Check the FSSAI portal for what your size of business needs.
3. Shop and establishment registration. Most states need this for any shop with staff. It is usually simple, but the address must match your lease.
4. Municipal trade or health licence. Many cities need a trade licence for eating places. Ask the local ward office what applies to your address.
5. Fire safety. Restaurants with gas cylinders and seating may need a fire safety certificate. Check exits, the size of the space and whether the building already has fire approval.
6. Society or building permission. In a residential building, ask in writing whether the society allows a food business, a chimney or exhaust, and a signboard.
7. Signboard permission. Some cities charge for or limit shop boards. Ask before you plan a big board.
8. Liquor licence, if you plan a bar. Rules change from state to state, and some areas do not allow it near schools or temples. Check first.
Put it in the lease
Ask the owner to write in the lease that the space can be used as a café or restaurant. Ask for a clause that lets you leave if a key licence is refused.
Check the address before you sign. Viabe Location Check reads one exact address: competitors nearby, footfall, fair rent, risks and a clear verdict. Check your location. Full report ₹2,999 + GST.
*This guide is general information, not legal advice. Rules differ by state and city.*
Sources: FSSAI FoSCoS portal.