Before opening a cafe, consider the following factors:

Before opening a cafe, consider the following factors:

  • Market plazas near colleges and schools, and huge malls in commercial regions are good places to start.
  • A unique selling point (USP) – What is the café’s USP? Then why should clients choose your café over those of your competitors’? Prepare a business plan and consider what will make your café unique in the marketplace. – Cafeterias with a theme, especially those with books and board games, have been increasingly popular over the past few years.
  • Funding – Before starting your business, you must determine your financial needs and sources. Decide on a budget and find the cheapest source of financing for the project.
  • Marketing –  New café needs a creative, out-of-the-box marketing campaign to attract customers in an age when both traditional media and social media are saturated.


Obtaining a license or registration is required.

Cafés fall under the criteria of a commercial enterprise and a food business, hence the Indian government has stepped in to regulate them. A multitude of rules and regulations govern cafés, and they must be properly registered in order to operate legally. As an example, below is a list of the requirements.

Registration FOR BUSINESS:

There are many types of business registrations, depending on the legal structure of the business (sole proprietorship, partnership, LLP, or corporation). According to the Companies Act of 2013, registration of a company is essential in the case of a café. As a private limited company or a limited liability partnership (LLP), government intervention is limited for smaller firms.

FSSAI license

An FSSAI license is required for a café, as it is a food industry operator. So that the food and beverages offered are safe, hygienic, and acceptable for human consumption.

License for the Health Trade

In order to receive this license, the café must apply to the local municipal corporation or health department of the state. Licenses are issued within 60 days after application if all paperwork is in order.

License for a dining establishment

For this license, you must apply at the nearest police station. Applicants in major cities and metro areas have the option of applying via the internet.

Certificate of fire safety

No Objection Certificate (NOC) from the local fire department is required. Upon inspection of the premises and installation of recommended fire extinguishers, etc., this certificate is issued.

Music/video playing license

Cafes that play music or video must get a copyright license under the Copyright Act of 1957 before playing music or video. On the websites of Phonographic Performance Limited or the Indian Performing Right Society, a request can be made.

Registration for the Goods and Services Tax

GST registration is required for cafés with annual revenues above Rs. 20 lakhs.

Licenses for shops and establishments

  • To defend the rights of shop workers, this license was developed. The Shop Act license is required for a café if it employs waiters and cashiers as well as cooks.
  • Are you interested in learning more about the FSSAI license and what it takes to open a coffee shop? LegalDocs is the place to be! We’ll take care of your license needs while you’re setting up your café.

The following documents are necessary for the FSSAI license at the basic level.


  • An official government ID (Voter ID, Passport, Driver’s License or Aadhar card) is required.
  • The Proprietor, Partner or Authorized Signatory must complete and sign the Form-B in duplicate.
  • Your restaurant’s blueprint or layout plan must include the exact measurements (in meters) and operation-wise area allocation, including all kitchens and manufacturing areas.
  • All of your restaurant’s key personnel, including directors, partners, and executive members of your society or trust, together with their addresses and contact information. This is a must-have for any establishment.
  • Equipment and machines are listed in depth. I think this is especially true in kitchens and manufacturing facilities.
  • The proprietor/Partner/Director must provide a government-issued identification and address the evidence (s).
  • A list of food categories to be supplied to customers must be shared with the company’s marketing department.
  • The food business operator is identified with a photograph (Restaurant Owner).
  • Possession of the premises must be proven (eg. Rental Agreement ).
  • Incorporation or partnership deed.
  • A list of food goods (both as inputs and as part of the final meal) must be completed.
  • A precise plan for managing food safety.