The licenses that are required by hotel at operational level

1. PROCEDURE FOR
OBTAINING
LICENSE FOR HOTELS
AT
OPERATIONAL LEVEL
SUBMITTED TO :- SUBMITTED BY :-
MR. ADHIP MOHIT KHATRII
M.H.M 3RD SEM
5308

2. These are licenses and permissions which are required closer to
the completion and commencement of the hotel. Upon completion
of the building the Partial Completion Certificate is converted in
Completion Certificate by the municipal corporation.
Once it is received an application is moved for securing an
occupancy certificate from the municipal corporation. It is at this
stage when all the required permission to make the hotel operation
have to be obtained from the various government authorities.
Hotel operating licenses broadly pertain to general hotel
operations, F&B operations, and mandatory registration which
have to be done by the finance and personnel department.

3. GENERAL AND HOTEL LICENSE
These are concerned with hotel classification, front office
operation, safety and security of guest, providing for guest
recreation and in room entertainment and internal communication
network of the hotel.
Board and lodging license :-
It is the 1st and foremost license which is issued by the additional
commissioner of police, licensing branch. In the application, it is
mandatory to disclose the names of the owners of the hotel and the
name of the unit head or GM, who is responsible for the operation
of the hotel.
Shops and Establishments Act :-
Registration under this is mandatory for hotels and restaurants by
this the owner is licensed to operate a commercial establishment as
defined under the act.

4. Hotel classification :-
Hotels are classified into various star category by department of
tourism. A hotel must apply for classification within 3 months of the
commencement of operation and the application must be submitted
to the Hotel and Restaurant Approval and Classification Committee.
In most states classification is a pre requisite for availing
government incentives and to secure tax advantages.
FRRO (Foreigners Regional Registration Office) :-
Under the Foreigners Act 1946 and Registration of Foreigners Act
1939 hotels are required to furnish the details of all the foreign
nationals to FRRO, bureau of immigration. However Pakistani
nationals are required to report within 24 hours and afghan nationals
within 14 days of arriving in the country to FRRO in person.

5. NOC from chief fire officer :-
Each state has framed its own fire safety and prevention laws. In
Delhi it is given by the chief fire Officer under the Delhi Fire
Service Act 2007 and Delhi Fire Service Rule 2010 after
inspecting the hotel premises.
Restricted money changer license from Reserve Bank of
India:-
This is issued by RBI to hotels enabling the front office cashier to
exchange foreign currency as well as to except foreign exchange
towards the settlement of bills. Foreign exchange received is given
to banks later.
NOC from Pollution Control Board:-
The PCB after inspecting the installation of STP’s provision for
rain water harvesting system and DG shall issue an NOC.

6. Export Promotion Capital Goods scheme :-
This allows import or domestic sourcing of capital goods. Under
this scheme hotels import F&B items, cars for guest use and other
goods. To apply under this scheme hotel should be classified by
Department of Tourism and be members of a accredited trade
bodies. This enables them to get the IE code i.e. must for a EPCG
license.
Lift operating license from inspector of lifts:-
License to operate a lift is given by the chief inspector of lifts,
office of the electrical inspector after verifying that the lift has
been correctly balanced to carry the number of persons or weight
as indicated and that the safety features installed are functional.
Permission to install signage and hoardings:-
This is given by the municipal corporation for special events for
e.g. F&B food festivals and so on.

7. Indian Performing Right Society/Phonographic Performance
Limited:-
Registration with these enables a hotel to play recorded music in
the public areas and restaurants.
Swimming pool and cooling tower permission from the police:-
This is given after all the safety aspects of the swimming pool and
the cooling tower have been checked by the police.
Website registration :-
The hotel website with all the details of the hotel requires to be
registered with the website service provider. The hotel has to
monitor the usage of the internet facilities by the guest as they
should not be accessing websites that display inappropriate
content.

8. License to operate a beauty parlor and spa :-
Given by the municipal corporation and the health department, it
has to be registered separately under the shops and establishment
act even though it is located inside the hotel.
Wireless planning and coordination wing, Ministry of
Communication:-
License is granted by the Ministry of Communication to operate
dish antenna and paging system within the building within a
predefined waveband and frequency.
FOOD AND BEVERAGE OPERATIONS
The primary responsibility of this department is to secure licenses
from the health authorities, Food Safety and Standards Authority
of India and the excise departments to operate restaurants and bars.

9. Health trade license:-
This is issued by the director of health services to eating houses.
Renewable annually it is mandatory for all food handlers to
undergo periodic medical checks and get vaccinated against
typhoid.
Eating house or restaurant license:-
Issued by the police commissioner upon receiving the health trade
license given by the health department. It is given for the period
of 5 years.
Sanitary certificate:-
It is issued by the health department given clearance to the hotel
from sanitary or hygienic point of view.

10. Liquor license:-
Hotel requires an on premises liquor license to serve liquor.
L3 license- it permits a star category hotel to sell IMFL/Beer to
resident guest through room service or by placing alcohol
miniatures in the rooms in the mini bars.
L5 license- it permits the sale of Indian and foreign liquor in
exclusive bars located inside star category hotels.
L4 license- it permits an independent restauranteur to sell
IMFL/Beer and foreign liquor to patrons in the specified bars
and restaurants.
L5a license- it permits sale of foreign liquor/Beer to resident
guests on luxury trains.

11. L19 license- it permits a club to sell IMFL/Beer to its member, for
e.g. Gymkhana club, Delhi Golf Club and so on.
L19a license- it permits a mess i.e. exclusively for government
servants to sell IMFL/Beer to its member, for e.g. DSOI club,
Dhaula Kuan (New Delhi), and all clubs and mess of the armed
forces.
L53 license- it permits the sale of beer/ mix alcoholic beverages
through a retail vendor in departmental stores or malls.
L20 license- it permits a hotel/restaurants/club on a temporary basis
for a specified guest functions to sell IMFL/Beer to gests. The
license has to be obtained in the name of the host who is hosting
the function by paying a fee of Rs. 5000. the premises should be
already licensed to sell alcohol- L3,L4,L5,L19,L19a.

12. L49a license- it permits the service of alcohol for special
occasions like marriages and engagements on any location i.e.
properly screened, and the service of alcohol is restricted to
people over 25 yrs of age. This license has to be obtained by the
host.
L18 license- it permits the extension of hours of operation for an
L3,L4 or L5 license holder.

13. Licensing process
Required to be followed by an FBO under the food safety and standards
act 2006
Filling of an application form
along with supporting
documents and fee.
Unique application number
generated and discrepancy if
any, is informed.
Inspection of the premises
and issue of inspection
report.
If no inspection or inspection
report not processed, food
business operator can
commenced business after 60
days.
Either grant or reject the
license after 60 days of receipt
of application or 30 days after
completion of inspection.

14. GLOSSARY
PCC- Partial Completion Certificate
CC- Competition Certificate
OC – Occupancy Certificate
FRRO- Foreigners Regional Registration Office
HRACC - Hotel and Restaurant Approval and Classification
Committee
NOC – No Objection Certificate
RBI – Reserve Bank of India
PCB – Pollution Controlled Board
EPCG – Export Promotion Capital Goods
IMFL – Indian Manufactured Foreign Liquor
STP – Sewage Treatment Plant
DG – Diesel Generator
IE – Import/Export

15. THANK
YOU