1 min read.Updated: 31 Jan 2020, 04:23 PM IST Edited By Sangeeta Ojha
36 approvals are required to open a restaurant in Bengaluru
Delhi requires a ‘Police Eating House License’ from Delhi Police that asks for 45 documents
In India, if you want to open a food joint, you require a lot of documents as compared to license to procure arms, says the Economic Survey 2019-20. The Survey says, "To open a restaurant: 45 documents are needed to obtain the necessary license from Delhi police. To buy a gun: Only 19 documents." The bars and restaurants sector is an important source of employment and growth everywhere in the world.
According to the National Restaurants Association of India (NRAI), India requires several more mandatory licenses and approvals: Delhi requires 26, Bengaluru 36, and Mumbai requires 22. In addition, Delhi requires a ‘Police Eating House License’ from Delhi Police that asks for 45 documents compared to just 19 needed to buy a gun. The scope for streamlining is clear.
In contrast, China and Singapore require only four licences to open a restaurant.
Moreover, in India, only the list of licenses and permissions can be obtained from a government portal or information center. On the other hand, in New Zealand, the website of Auckland Council (operated by a private third-party agency) has all detailed guides and stepwise procedures about permissions, fees and timeline to open a restaurant. The website is also equipped with ready-to-use business plan templates and comprehensive information on different businesses irrespective of the scale of business.
The World Bank ranks 190 countries on doing business index based on ten parameters. India has moved 14 places to be 63rd among 190 nations in the last World Bank's ease of doing business ranking. It has significantly improved its performance in remaining six parameters - resolving insolvency, registering property, construction permits, getting electricity connection, getting credit, and trading across borders.