Starting and operating a hotel business requires several licenses and registrations. Many registrations must be obtained before the hotel starts and renewed while the hotel is operational. In addition, most registration certificates are required to comply with certain rules or norms for maintaining hotel validity. It is therefore important for enterprises in the hotel industry to be aware of these licenses and registrations.

For the smooth running of a hotel business, much of the registration depends on the type of hotel, star rating, amenities, and location of the hotel. Town Planning Act or Development Act relevant to all hotels or otherwise municipal act, layout building plans, water supply, sewerage, drainage, drainage, drainage, etc. A proper building permit must be obtained as per any other laws applicable for divergence etc. In order to make your hotel the best travelers choice, you need to make arrangements in a best manner.

Requirements of Registration in the Hotel Industry

Fire safety permit for hotel business

The fire department requires a fire safety certificate or permit to run a hotel business. A fire safety certificate will usually be issued if the building contains the proper fire prevention and fire safety measures required by the relevant fire safety laws and regulations. For any kind of studio apartments or for a day hotel follow the criteria.

Police license for hotel

Hotels are public places that are closely monitored by the police department. Therefore, all hotels should maintain a proper log of the guests who have stayed in the hotel, follow the relevant rules and maintain a valid permit from the police department.

Building Permit

All government departments, municipal bodies, and other construction agencies adopt the national code. As per the National Building Code, a separate permit has to be obtained for each such development and building from the authority. Therefore, all hotels are required to have a proper building permit as per the relevant rules such as the Town Planning Act or the Development Act.

Business Registration

It is recommended to set up a hotel under an artificial legal entity such as a company or LLP. By operating a company under such an artificial legal entity, the liability of the promoters about the business can be limited and the business can be easily transferred to another person.

Bar License

If you are running a bar in a hotel or serving alcohol in restaurants, a bar licence from the concerned authorities is required. The bar licence is usually issued by departments functioning under the government. So, the requirement for a bar licence varies from state to state.

 Food Business License

A food business licence is required under the Food Safety and Standards Act to run a restaurant. It is usually given for one year and should be renewed at the end of each year. Therefore, this licence for restaurants is managed by local offices.

Service Tax Registration

The service tax applies to the accommodation services provided by the hotel and the food services provided by the restaurant in the hotel. So, hotels must get and maintain service tax registration.

VAT Registration

Value Added Tax or VAT is applicable on food served by a restaurant in a hotel, so hotels have to obtain VAT registration to comply with VAT rules.