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Liquor License

How To Obtain A Liquor License In India?

A Liquor License issued by a state’s excise department authorizes licensed people to make, distribute, and sell alcoholic drinks inside the state’s borders. From liquor shops to restaurants, every company that sells alcoholic drinks must register for a liquor license, whether online or in person. Even online alcohol sales in India require a liquor license.

The selling, delivery, and production of liquor are within the state list, according to the Constitution’s VII Schedule. Hence, state governments have full control well over alcohol-related laws and rules implemented inside their respective territories. As a result, each state has its own set of regulations for the sale and manufacturing of liquor.

You would like to sell alcohol in India but are unsure how to get started. Fortunately, we have developed a complete guide on beginning a liquor company for you. This article will discuss everything from the various types of liquor licenses, the expenses involved, and the paperwork necessary for the procurement procedure.

The following are the main laws and guidelines that govern the sale and use of alcohol in India:

  • Article 47 of the 2003 Constitution Licensing Act
  • The Delhi Excise Act of 2009 and the Excise Rules of 2010 
  • The Punjab Excise Act of 1914
  • Bengal Excise Act of 1909 
  • Uttar Pradesh Excise Act of 1910.

What does the Liquor License Regulate?

While granting a Liquor License, the excise department aims to govern the various responsibilities within a state:

  • Businesses that are permitted to sell and advertise alcohol
  • When and where alcohol may be sold in businesses
  • The amount of alcohol that can be sold at one time.
  • The fee levied for the purchase of alcoholic beverages
  • Types of liquor that can be sold who can buy it? Businesses that can make, transport, sell, and possess alcohol.

APPLICATION PROCEDURE FOR A LICENSE:

Because each state has its own liquor regulations, you should consult an expert before starting to prevent legal complications later. Nonetheless, below is an overview of the typical procedure for acquiring a liquor license in India.

  1. To begin, go to the official website of the state excise administration to obtain a sense of the procedure. You may also go to their real workplace to get a sense of what is anticipated.
  2. Determine what sort of license you require after you have a general understanding of the procedure.
  3. Next, gather the necessary papers to begin the application procedure.
  4. Download the application form for the sort of license you want from the state excise department’s website.
  5. Fill out the form completely and attach any relevant supporting documentation.
  6. Some of the information you will need to provide include information about your business, personal information, and the types of liquor you desire to sell.
  7. Submit the completed form to the appropriate authorities together with the application fee.
  8. The authorities will then confirm all of the information given. They may also pay a visit to your firm to ensure that all is in order. If they discover an error, they may request further supporting documentation, which you must give.
  9. Once the verification procedure is complete, they will display a notice on your business premises detailing your request for a liquor license. This is to inform the community about your new company. If they desire to object, they must do so within a certain time frame, and you must then defend why your company will not be a barrier to them.
  10. If no valid objections are raised, the authorities will award you a liquor license and you may commence operations.

The Various of Liquor Licenses Available in India:

  • Beer and Wine License – For venues that simply want to offer moderate liquors like beer and wine. Keep in mind that such establishments should not sell strong liquor.
  • Restaurant A liquor license is required for establishments that want to offer alcohol. This license only applies to businesses that make just under 40% of their total revenue from the sale of liquor.
  • Tavern License – For establishments whose liquor sales account for more than half of their revenue.
  • Brewpub License – For businesses who make their own wine and beer.
  • Temporary License – To offer liquor at a party or event attended by less than 20 lakh persons.
  • FL-4 License – For those who seek to serve alcohol at a private party held within a private resort or apartment.
  • L1 – Required for wholesale distribution of Indian liquor L3 – Allows hotels to distribute foreign liquors to hotel guests in their rooms
  • L5 – Allows hotels to offer alcohol in restaurants or bars on hotel grounds.
  • L6 – Appropriate for retail distributors of breweries and Indian liquors. L19 – Allows clubs to sell foreign alcohol.

Documents Needed to Obtain a Liquor License:

  1. Identity and residence verification for the applicant
  2. NOC from the state fire service
  3. NOC from the involved municipal corporation
  4. Address evidence of the business property
  5. Completed application form MoA and company AoA, if applicable.
  6. Affidavit confirming lack of criminal charges in the applicant’s name.
  7. Affidavit claiming the client has no overdue dues in their name.

The Price of a Liquor License in India:

Because liquor regulations differ from state to state in India, the cost of acquiring a license varies based on your location. Furthermore, the cost of acquiring a license is determined by the type of license desired as well as the size and nature of your organization. The following table breaks down the standard cost of a liquor license in India:

  • Temporary License – If you want to serve alcohol at an event or party in a town with fewer than 20 lakh people, you must pay either:
  • 7,000 if you want to offer alcohol to less than 100 persons.
  • 10,000 if you intend to offer alcohol to more than 100 persons.
  • FL -4 License – Approximately ₹13,000.
  • Serving Liquor in Rooms – To serve liquor in restaurants, you must pay either:
  • $5,000 or $5,000,000.
  • 1,50,000 for serving at a bar or restaurant
  • State Liquor License – Between $5,000 and $15,000.

Keep in mind that operating a liquor company without a Liquor License can result in serious legal consequences and substantial penalties. As a result, it is always preferable to remain on the legal side of the law. Contact us to learn more about how to legally start and manage a liquor company.

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