A restaurant or cloud kitchen is licence-heavy compared to most small businesses – but 2026 made it easier: FSSAI slabs were rewritten from 1 April 2026 (Basic registration now covers turnover up to Rs 1.5 crore) and licences are now perpetually valid. Here is the full stack, from FSSAI to the music licence everyone forgets.
Updated July 2026. Registrations and fees current as of July 2026 (major recent changes are dated in-line). Rules change by notification – use the official links to confirm before applying.
Registrations and licences you need
| Registration / licence | Applies | Government fee | Authority / portal | Validity |
|---|---|---|---|---|
| FSSAI registration / licence NEW SLABS eff 1-Apr-2026: Basic up to Rs 1.5 CRORE turnover (covers most cloud kitchens now), State 1.5-50 crore, Central above 50 crore. Display the FSSAI number on the premises, menus and online listings. | MANDATORY | Basic Rs 100 per year; State Rs 2,000 per year (restaurants); Central Rs 7,500 (as per FoSCoS) | FSSAI (FoSCoS) foscos.fssai.gov.in | PERPETUAL since March 2026 – renewals abolished |
| GST registration Threshold Rs 20 lakh for services (Rs 10 lakh in Manipur, Mizoram, Nagaland, Tripura). Inter-state SERVICES within the threshold stay exempt from registration. | IF APPLICABLE | Nil | GST portal gst.gov.in | Ongoing (returns apply) |
| Shops and Establishment registration Required in most states within 30 days of starting; our guide covers state-wise fees and portals. | MANDATORY | Varies by state | State labour department Our state-wise S and E guide | State-wise (one-time to 5 years) |
| Trade / health licence Eateries are the classic trade-licence category in almost every municipality. | MANDATORY | Rs 500 – 10,000 per year (city-wise) | Municipal corporation | Annual renewal |
| Fire NOC Commonly triggered by seating capacity (around 50+), floor area or building height – thresholds vary by state. Cloud kitchens in commercial kitchens usually inherit the building NOC. | IF APPLICABLE | Varies by state | State fire services | Typically 1-5 years |
| Liquor licence Only if serving alcohol; one of the costliest and most state-specific licences. | IF APPLICABLE | State-wise (often lakhs per year) | State excise department | Annual |
| Music licence (PPL + IPRS) Needed for playing recorded music in the premises – the licence everyone forgets until the notice arrives. | IF APPLICABLE | By seating and city tier | PPL and IPRS (copyright societies) | Annual |
| Udyam (MSME) registration Not legally compulsory but practically essential: cheaper trademark and expedited fees, priority-sector lending, delayed-payment protection under MSMED Act. | MANDATORY | Free | Ministry of MSME udyamregistration.gov.in | Lifetime |
| Professional tax (PTEC / PTRC) Levied in about 21 states – PTEC for the business itself, PTRC once you have employees. | IF APPLICABLE | Up to Rs 2,500 per year | State commercial tax department Our PT calculator + state pages | Annual |
Trade licence, fire NOC thresholds, Shops and Establishment and liquor rules are state or city specific – verify with your municipal corporation and state fire service. GST note: restaurant service is taxed at 5 percent without input credit; the composition scheme for restaurants (5 percent, turnover cap Rs 1.5 crore) remains available after the September 2025 GST overhaul.
The right order to do it in
- Lock the premises and check the building: commercial use permitted, fire compliance status, water testing feasibility – your FSSAI State licence and fire NOC both depend on the site.
- Set up the entity and bank account. Choose your entity first: a proprietorship needs no central registration (PAN + bank account, with GST/Udyam/Shops-and-Establishment serving as business proof); a partnership needs a deed (register with the state Registrar of Firms – an unregistered firm cannot sue); an LLP files FiLLiP and a company files SPICe+ on mca.gov.in – the MCA fee for SPICe+ is NIL up to Rs 15 lakh authorised capital (state stamp duty extra).
- Apply for FSSAI on FoSCoS – Basic (instant, no inspection) if turnover will stay under Rs 1.5 crore; State licence above that. Keep the kitchen layout and water test report ready for State tier.
- Take the municipal trade / health licence and the state Shops and Establishment registration.
- Register for GST (Rs 20 lakh services threshold – but aggregators require a GSTIN to onboard, so cloud kitchens effectively need it from day one).
- Add fire NOC (if thresholds hit), liquor licence (if serving), PPL + IPRS music licences, and EPF/ESI as headcount grows.
Documents to keep ready
Your NIC code: Division 56 (food and beverage service). Common Udyam picks: 56101 (restaurants), 56102 (cafes, fast food and cloud kitchens), 56210 (catering). Open the NIC Code Finder to search and copy the exact code.
Frequently asked questions
Which FSSAI licence does a cloud kitchen need in 2026?
Under the slabs effective 1 April 2026, Basic registration (Rs 100 a year) now covers turnover up to Rs 1.5 crore – which includes most single-brand cloud kitchens. Above Rs 1.5 crore you need a State licence, and above Rs 50 crore a Central licence. Registrations issued now are perpetually valid; the old renewal cycle was abolished.
What GST rate applies to a restaurant or cloud kitchen?
Restaurant service is 5 percent without input tax credit – including cloud kitchens and delivery. Orders through Swiggy/Zomato: the platform collects and pays the 5 percent GST on restaurant service itself (section 9(5)), but you still need your own GST registration to be onboarded. The September 2025 GST overhaul did not change this structure.
Do I need a fire NOC for a small cafe?
Usually not below the state thresholds – fire NOC typically triggers around 50+ seating capacity, larger floor areas or specific building types, but every state sets its own rules. A small cafe in a compliant commercial building often needs nothing separate; verify with the state fire service.
Is a separate licence needed to play music in my restaurant?
Yes – playing recorded music commercially needs licences from PPL (sound recordings) and IPRS (compositions), priced by seating and city tier. These are private copyright societies, not government bodies, and they do actively send legal notices to unlicensed outlets.
Related tools on CalcGuru
Business Registration Guide (all types)S and E Registration – state-wiseGST Late Fee CalculatorCompliance Calendar + email remindersSalary Slip Generator (for staff)
This page lists the registrations COMMONLY required for this type of business – sector-, product- and state-specific requirements may also apply, and thresholds change by notification. It is general information, not professional advice; confirm your specific case with the official portals linked above or a professional before acting. See our full disclaimer.