Hookkah Bar Lounge
Starting a Hookah Lounge combined with a restaurant is a new investment opportunity in India. The current generation prefers a calm environment with some music, making hookah lounges popular, especially among college students. In this article, we will explore the trends of opening a hookah lounge, the process to get a hookah license, and the fees for obtaining a hookah lounge license in India.
Before obtaining the Hookah Lounge License, you must also apply for an FSSAI State License. Here are some important points to consider before opening a Hookah Lounge:
- The lounge should have a relaxing atmosphere, and the owner should offer a variety of hookah flavors.
- The space for the hookah lounge should be larger than a typical restaurant.
- CCTV cameras must be installed for security.
- The lounge should not be located within 500 meters of educational institutions, schools, hospitals, or places of worship.
- No minors should be served hookah.
- The owner must get a No Objection Certificate (NOC) from neighboring properties.
- A hookah lounge can only be opened if there is a restaurant as part of the business, meaning food must be served alongside hookah. A hookah bar cannot operate without a restaurant.
Cost and Profit Analysis of Hookah Lounge
The growing popularity of hookah has become a profitable venture for owners in the food industry, such as those running restaurants, clubs, and hotels. The cost of obtaining a Hookah Bar license varies by state, and the overall expenses (including development and licensing fees) depend on the location where the hookah is offered.
The price of the liquor license also influences the cost of the hookah license, as set by the government. Owners typically recover their initial investment, including the cost of setting up the hookah bar and paying for the necessary licenses, by earning around a 300% profit in the first year of operation.
What steps and Licenses are required to obtained before obtaining the Hookah License?
The First step that is required before obtaining a Hookah license is to-
- Register A Bussiness
- Trade License
- Shop And Establishment License
- Fire Safety NoC
- Music License
- FSSAI State License
- GST Registration
- Staff Licese And Labour Registration
- License From Police Commissioner
- Pollution Control
Registering a Business
The first step to obtaining a Hookah License is to officially register your business. This can be done by forming a Private or Public Limited Company, a Limited Liability Partnership (LLP), a Partnership, or a Sole Proprietorship.
Once your business is registered, you’ll need the following licenses to smoothly operate the hookah lounge:
Before getting a Hookah License, you must obtain a Trade License from the local Municipal Corporation. This license allows you to legally conduct your business and ensures safety standards are followed.
2.Shop and Establishment License
This license protects employee rights and ensures proper working conditions. It is issued by the State’s Chief Inspector from the Labor Department.
Since hookah lounges use flammable materials and are open to the public, a Fire Safety License is required from the Fire Department to ensure public safety.
4.Music License
If you plan to play music at your hookah lounge, you’ll need a Music License from organizations like the Phonographic Performance Limited or the Indian Performing Rights Society.
Any food business, including hookah lounges, must get an FSSAI State License. To qualify, your business needs an annual turnover between ₹12 lakh and ₹20 crore, or it must be a milling unit for grains, cereals, or pulses. Having this license ensures that your food is hygienic and of good quality, which builds customer trust and loyalty.
6.GST Registration
If your business’s turnover exceeds a certain limit, you must register for GST. This is required for businesses providing taxable goods and services.
7.Staff License and Labor Registration
Depending on the number and type of employees you hire, you’ll need to register with the Labor Department.
8.License from the Police Commissioner
A license from the police commissioner is required to run a hookah lounge. This is granted at the discretion of the commissioner after certain conditions are met.
Pollution control ensures businesses minimize environmental harm, comply with regulations, and obtain necessary certifications from the Pollution Control Board.
Note: Before starting business activities, every business must also obtain a Pollution Certificate from the State Pollution Control Board.
Hookah Lounge License Fees in India
The cost of obtaining a Hookah Lounge License varies by state. It includes the fees for Business Registration, Trade License, Labor Court Staff Registration, Shop and Establishment License, FSSAI State License, GST Registration, Fire Safety License, and Music License. The Hookah Lounge License may have different categories, such as L1, L2, and so on, depending on the nature of the business.
Conclusion
The process of obtaining a Hookah Lounge License involves several steps, including getting various other licenses such as the Food State License, Trade License, Shop and Establishment License, and more. Despite being a lengthy process, the hookah lounge business has become very popular and profitable.