What type of registrations are required for dhaba hotel?

Interested in setting up a dhaba/ hotel? Searching for how register the same? Here, on this Ask Experts page you will find responses to your query.

One of my friend is running a dhaba hotel, which is located next to a National Highway. Till now, he ran the hotel in an unorganised manner. Now, he wants to run it in an organised way, for which he wants to do different kinds of registrations like GST, Labour licence, etc. In the hotel, he serves only food and nothing else. He is the sole proprietor of the hotel. The place and the infrastructure in which he is operating, are on rent basis.
What are the different kinds of registrations that are required for such an establishment? What are the documents required for hotel license?

#143834

12 Jul 2017 13:32

Joined:	10/12/2016
Level:	Diamond
Points:	14210

Points:	10 (Rs 10)

Dhaba hotel is basically a restaurant and is classified as a commercial establishment. You have to find out under which municipal corporation that particular area is coming. After that you have to approach that municipality office for registration of shop. If that is not falling under any municipality then you have to find out the gram panchayat under whose jurisdiction it is falling.

Please remember that if you are starting this dhaba on a large scale and want to do everything in a transparent manner then you have to apply for the registration within 20 days of starting or inauguration of your rennovated dhaba.

Anyway when you go for registration you will be asked for various details like how many workers you are employing, what is their duty timing, valid electricity and water connections, safety aspects, pollution aspects, distance from the highway etc. These things are important from the view point of the labour deptt of state Govt or central Govt. In some states permission of labour deptt may be required.

Once registration part is over you have to register for GST which is done online and you have to give the details of your business and expected turnover.

For restaurants whose turnover is less than 50 lac in a year GST is only 5% while for others having high turn over it is 12% for non AC and 18% for AC.

So it is better to make your documentation in good shape so in long run you will not have any problem.

Generally in every town or city there are consulting services for all these matters and you can find one near you and get all these things done by them by paying a nominal fee to them. This way you will get more time for your business.

Please do not get confused or fearful with the procedures as they are for the safeguards of business as well as customer. If you do your business in a transparent manner your expansion and growth will be fast and you will be free of any tension that arises by not paying tax or hiding your income.

There are various deductions and subsidies for small businesses and by finding a good consultant you can take the advantage of those facilities while computing your income from the business.

Knowledge is power.

#143859

13 Jul 2017 18:41

Joined:	19/06/2011
Level:	Diamond
Points:	65906

Points:	6 (Rs 6)

The first permission or licence is to run a commercial shop or establishment. That is given by the local self government like Panchayat, Municipality or corporation.It is given under the relevant shops and establishment rules. The next is the NOC or sanction or clearance by following guidelines from the health department(of the same local body) as you are going to run a food outlet. As it is near Highway,you have to ensure the distance factor from the road. Usually this is taken care of by the local body when they issue licence. If the space is rented, then you may need NOC from your landlord expressly allowing you to run the hotel business.

For small hotels and dhabas who have a turnover of less than 50 lakhs,the GST is 5 %.

If you employ labourers,take a floating insurance on them. Approach the labour department to be safe and comply the guidelines. But if you are a member of any commercial/trade/hotelier association then take guidance for then first. If you are not a member, it will be good if you can take a membership.

#144888

20 Aug 2017 14:28

Joined:	13/06/2017
Level:	Silver
Points:	116

Points:	0

TThis response is marked as DELETED by the admin.

Please remember that if you are starting this dhaba on a large scale and want to do everything in a transparent manner then you have to apply for the registration within 20 days of starting or inauguration of your rennovated dhaba.

Anyway when you go for registration you will be asked for various details like how many workers you are employing, what is their duty timing, valid electricity and water connections, safety aspects, pollution aspects, distance from the highway etc. These things are important from the view point of the labour deptt of state Govt or central Govt. In some states permission of labour deptt may be required.

Once registration part is over you have to register for GST which is done online and you have to give the details of your business and expected turnover.

For restaurants whose turnover is less than 50 lac in a year GST is only 5% while for others having high turn over it is 12% for non AC and 18% for AC.

So it is better to make your documentation in good shape so in long run you will not have any problem.

Generally in every town or city there are consulting services for all these matters and you can find one near you and get all these things done by them by paying a nominal fee to them. This way you will get more time for your business.

Please do not get confused or fearful with the procedures as they are for the safeguards of business as well as customer. If you do your business in a transparent manner your expansion and growth will be fast and you will be free of any tension that arises by not paying tax or hiding your income.

There are various deductions and subsidies for small businesses and by finding a good consultant you can take the advantage of those facilities while computing your income from the business.
That is given by the local self government like Panchayat, Municipality or corporation.It is given under the relevant shops and establishment rules. The next is the NOC or sanction or clearance by following guidelines from the health department(of the same local body) as you are going to run a food outlet. As it is near Highway,you have to ensure the distance factor from the road. Usually this is taken care of by the local body when they issue licence. If the space is rented, then you may need NOC from your landlord expressly allowing you to run the hotel business.

For small hotels and dhabas who have a turnover of less than 50 lakhs,the GST is 5 %.

If you employ labourers,take a floating insurance on them. Approach the labour department to be safe and comply the guidelines. But if you are a member of any commercial/trade/hotelier association then take guidance for then first. If you are not a member, it will be good if you can take a membership.

What type of registrations are required for dhaba hotel?

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