# How to get a hotel license in India: every licence a hotel needs

> There is no single hotel licence in India. A hotel runs on a set of permissions from the city, the state and central bodies. Here is the full list, what each one is for, the order to apply in and what they cost.

- URL: https://guesthawk.com/guides/hotel-license-in-india
- Category: Compliance
- Tags: Licences, Registration, Form-III, GST
- Published: 11 November 2026
- Updated: 11 November 2026
- Publisher: GuestHawk (https://guesthawk.com)

If you are working out how to get a hotel license in India, the first thing to know is that there is no single licence. A hotel runs on a set of permissions: one from the city to trade at that address, one from the fire service for the building, one from FSSAI for the food, tax registrations, and others depending on what you offer, such as a bar, lifts or live music. Each comes from a different office with its own form, fee and renewal date. This guide lists every licence an Indian hotel may need, says what each one is for, suggests the order to apply in and links to our detailed guide for each.

## Do you need a licence to run a hotel?

Yes. Every hotel, lodge, guest house and resort in India needs permissions before it can take paying guests. What changes from place to place is which permissions, who issues them and what they are called. A homestay registered under a state scheme usually needs fewer (see [homestay registration in India](https://guesthawk.com/guides/homestay-registration-in-india)), and a large hotel with a bar and banquet hall needs more.

The rules are mostly set by states and local bodies, so treat this guide as a map. For each item, confirm the current requirement with the office named.

## Every licence a hotel may need

| Licence or registration | Issued by | Who needs it | Detailed guide |
| --- | --- | --- | --- |
| Trade licence (and municipal health licence for the kitchen) | Municipal corporation, municipality or panchayat | Almost every hotel in a town or city | [Trade licence for hotels](https://guesthawk.com/guides/trade-license-for-hotels) |
| FSSAI registration or licence | FSSAI, through the FoSCoS portal | Any property that serves food, even breakfast | [FSSAI licence for hotels](https://guesthawk.com/guides/fssai-license-for-hotels) |
| Fire NOC or fire safety certificate | State fire and emergency service | Buildings above your state's height or area threshold | [Fire NOC for hotels](https://guesthawk.com/guides/fire-noc-for-hotels) |
| Police or lodging house licence | City police or the municipal body, depending on the city | Depends on the city; some have dropped it | [Police licence for hotels](https://guesthawk.com/guides/police-license-for-hotels) |
| Form-III reporting for foreign guests | Bureau of Immigration (FRRO), via indianfrro.gov.in | Every property hosting a foreign guest | [Form-III for hotels](https://guesthawk.com/guides/form-iii-for-hotels) |
| GST registration | GST department | Turnover above the threshold, or by choice | [GST on hotel rooms](https://guesthawk.com/guides/gst-on-hotel-rooms-and-restaurants) |
| Shops and establishments registration | State labour department | Businesses with employees; thresholds vary by state | Ask your state labour portal |
| Pollution consent (consent to establish and to operate) | State Pollution Control Board | Depends on size, rooms and wastewater; check your board's category list | Ask your state board |
| Lift licence or registration | State lift or electrical inspectorate | Buildings with lifts or escalators | Ask your state inspectorate |
| Bar or liquor licence | State excise department | Serving alcohol in rooms, a bar or restaurant | [Bar licence for hotels](https://guesthawk.com/guides/bar-license-for-hotels) |
| Music licence | Copyright owners, through the bodies that represent them | Playing recorded music in public areas or at events | Ask the rights bodies |
| Tourism registration or star classification | State tourism department; Ministry of Tourism (NIDHI+) | Required in some states; star rating is voluntary | [Hotel star rating in India](https://guesthawk.com/guides/hotel-star-rating-in-india) |

Two more sit underneath all of these: **building permission for hotel use** (and land conversion if the land was agricultural) and the **occupancy certificate**. Without them, most of the licences above cannot be issued.

### One line on each

- **Trade licence.** The local body's permission to run a lodging or eating business at your address. Names vary: Kolkata calls it a Certificate of Enlistment, and Kerala panchayats license listed trades under section 232 of the Kerala Panchayat Raj Act, 1994.
- **FSSAI.** From 1 April 2026, registration covers turnover up to ₹1.5 crore, a state licence above ₹1.5 crore up to ₹50 crore, and a central licence above ₹50 crore. FSSAI's table puts hotels of five star and above under the central licence.
- **Fire NOC.** The National Building Code 2016 fire chapter applies to buildings 15 m or above and to hotels with more than 500 m² on any floor; your state's rule may be stricter.
- **Police or lodging licence.** Mumbai Police say a police licence is no longer needed for hotels and eating houses, and Delhi repealed its police regulations for hotels in June 2025. Other cities still ask.
- **Form-III.** Every foreign guest is reported online on Form-III (formerly Form C) within 24 hours of arrival, under the Immigration and Foreigners Act, 2025.
- **GST.** Service providers generally register once aggregate turnover crosses **₹20 lakh** a year (**₹10 lakh** in some special category states). Confirm with your CA.
- **Shops and establishments.** Covers working hours, leave and holidays for staff. Some states only ask small employers to file an intimation, and thresholds have changed recently, so check your state's labour portal.
- **Pollution consent.** Issued under the Water Act, 1974 and the Air Act, 1981. Whether you need it, and in which category, depends on your state board's list, your size and whether you run a sewage treatment plant.
- **Lift licence.** Many states require lifts to be registered and inspected periodically. Ask the inspectorate before the lift is commissioned.
- **Bar licence.** Issued by state excise, with names and fees that change at every state border.
- **Music licence.** Under the Copyright Act, 1957, playing recorded music in public needs permission from the rights owners. Ask your event organiser or a lawyer which licences cover your use.
- **Star classification.** Voluntary under the Ministry of Tourism, though some other approvals, such as certain hotel liquor licences, refer to it.

## The order to apply in

Some licences depend on others, so the order matters:

1. **Business set-up.** Company, LLP or firm registered, PAN, bank account.
2. **Building.** Approved plans for hotel use, plan-stage fire NOC if needed, then the occupancy certificate after construction.
3. **Final fire NOC** once the systems are installed and tested.
4. **Trade licence** and municipal health licence, which usually ask for the fire NOC and occupancy proof.
5. **FSSAI**, before the kitchen serves its first meal.
6. **GST registration** and **shops and establishments**, before you take bookings and hire staff.
7. **Pollution consent** and **lift licence**, where they apply, before opening.
8. **Police or lodging permission**, where your city still requires it, and your Form-III login on indianfrro.gov.in.
9. **Bar licence**, **music licences** and **star classification** last, since they ask for most of the above.

## Documents required for a hotel licence

Most applications draw on the same pack. Prepare it once, scan everything clearly and keep it in one shared folder:

- Owner or partners' ID and address proof, and PAN.
- Company, LLP or partnership documents, with an authorisation letter for whoever signs.
- Sale deed, or a registered lease or rent agreement, and the landlord's consent where needed.
- Approved building plan showing hotel use, and the occupancy certificate.
- Latest property tax receipt.
- Fire NOC (once you have it) and fire system drawings.
- Site plan, floor plans and photographs of the frontage, rooms and kitchen.
- Water test report, and for FSSAI licences, a list of kitchen equipment and a food safety plan.
- GST registration certificate once issued.

The Ministry of Tourism's classification process, for example, asks for the fire service NOC, municipal registration, approved building plans and the occupancy certificate. Have them ready and the later licences go quickly.

## Hotel licence fee: what it actually costs

There is no single hotel licence fee. Each licence has its own fee, and most are set by states or cities. Here are figures from official schedules:

| Licence | Official fee (example) |
| --- | --- |
| FSSAI registration | ₹100 a year (turnover up to ₹1.5 crore) |
| FSSAI state licence | ₹5,000 a year (hotels up to four star) |
| FSSAI central licence | ₹7,500 a year (hotels five star and above) |
| Trade licence, Hyderabad (GHMC) | ₹3, ₹4 or ₹6 per sq ft, by road width |
| Star classification | From ₹6,000 (1 Star) to ₹25,000 (5 Star Deluxe), per the Ministry's guidelines |
| Bar licence | From about ₹1 lakh a year in a small Maharashtra town to well over ₹20 lakh for a large city hotel |

**Worked example (illustrative).** A 30-room hotel in Hyderabad with a restaurant, 9,000 sq ft of trade area on a 30 ft road, and a state FSSAI licence:

| Item | Calculation | Yearly fee |
| --- | --- | --- |
| Trade licence | 9,000 sq ft × ₹4 | ₹36,000 |
| FSSAI state licence | Fixed | ₹5,000 |
| Total of these two |  | ₹41,000 |

Add the fire NOC, pollution consent and any lift fee from your state's schedules, plus the cost of a fire consultant and any agent you use. The fees themselves are rarely the largest cost. The fire systems, building changes and months of delay usually are, so start early.

## State examples

### Maharashtra

In Mumbai, Mumbai Police say no police licence is needed for hotels and eating houses, under a government order of 22 December 2015. The lodging house and eating house licences come from the Brihanmumbai Municipal Corporation under section 394 of the Mumbai Municipal Corporation Act, 1888. For fire safety, Maharashtra requires owners to file Form B from a licensed fire agency every January and July. Outside Mumbai, ask your municipal council and local police which permissions apply.

### Kerala

In panchayat areas, hotels need a licence from the Grama Panchayat for trades listed under section 232 of the Kerala Panchayat Raj Act, 1994, often called a D&O licence. Municipalities and corporations run their own licensing. Homestays can register and be classified under Kerala Tourism's scheme instead.

### Tamil Nadu

Lodging houses and other places of public resort are licensed under the Tamil Nadu Places of Public Resort Act, 1888, and Chennai city has its own provision under the Madras City Police Act, 1888. We have not confirmed from an official source which office issues a lodging licence in Chennai today, so ask Greater Chennai Police and Greater Chennai Corporation which licence and any NOC you need.

## Renewals: keep one calendar

Licences that lapse cause more trouble than licences never obtained, because the business looks established and nobody is watching. Keep one calendar with every licence, its number, its expiry or fee date, and who is responsible.

- **Trade licence:** usually yearly, often by the financial year.
- **FSSAI:** licences issued on or after 1 April 2026 do not expire, but the annual fee is still due. Older licences: check FoSCoS before the printed expiry.
- **Fire:** by your state's rules; in Maharashtra, Form B every January and July.
- **Bar licence:** usually by the excise year.
- **Pollution consent and lift licence:** by the validity on the certificate.

Set reminders two months ahead for anything that needs an inspection. If you are taking over a hotel, check that each licence can be transferred, or apply fresh in your name before the handover date.

## Common mistakes

- **Buying or leasing before checking licensability.** A building that cannot get a fire NOC or hotel use permission will never be licensed. Our guide to [leasing a hotel](https://guesthawk.com/guides/leasing-a-hotel-in-india) covers the checks.
- **Assuming the previous owner's licences carry over.** Many are issued to the holder, not the building, so they need a transfer or a fresh application.
- **Ignoring the small ones.** Music and lift licences are easy to forget until an inspector or a rights body asks.
- **Letting one person hold every login.** Keep shared access to the portals and the folder.

## Getting started

If you are still at the planning stage, read [how to start a hotel business in India](https://guesthawk.com/guides/how-to-start-a-hotel-business-in-india) for the full opening timeline. Then work through the detailed guides above in the order shown.

Licences get you open; daily compliance keeps you open. GuestHawk verifies guest ID on the guest's phone, prepares Form-III at check-in for every foreign guest, and keeps guest and police registers in the format your state asks for. See [compliance on GuestHawk](https://guesthawk.com/platform#compliance) or [book a demo](https://guesthawk.com/contact).

## Frequently asked questions

### Do you need a license to run a hotel in India?

Yes, but not one licence. A hotel needs a set of permissions: usually a municipal trade licence, a fire NOC where the building needs one, FSSAI registration or a licence if it serves food, GST registration above the threshold, and any lodging or police permission your city requires. Bars, lifts and music need their own.

### What documents are required for a hotel license?

Most applications use the same core pack: owner ID and address proof, PAN, proof of ownership or a registered lease, approved building plan and occupancy certificate, property tax receipt, photographs, and the business's registration documents. Keep one scanned folder and reuse it.

### What is the hotel license fee in India?

There is no single fee. Each licence has its own. For example, FSSAI charges **₹100**, **₹5,000** or **₹7,500 a year** depending on category, and Hyderabad's GHMC charges trade licence fees of **₹3 to ₹6 per sq ft** depending on road width. Fire, pollution and police fees are set by each state.

### Who issues a lodging license?

It depends on the city. Mumbai's lodging house licence comes from the municipal corporation, and Mumbai Police say a police licence is no longer needed for hotels. Other cities still ask for police permission. See [police licence for hotels](https://guesthawk.com/guides/police-license-for-hotels).

### How long does it take to get all hotel licences?

Plan for several months for a new building, because the fire NOC and building approvals come first and others depend on them. Taking over a licensed hotel is faster, but each licence must be transferred to the new owner or applied for fresh.

## Sources

- [FSSAI: order on revised turnover thresholds for licence and registration, 13 Mar 2026](https://www.fssai.gov.in/upload/advisories/2026/03/69b4054bb6cd6Order%20dated%2013thMarch2026_Revised%20Turnover%20threshold.pdf)
- [FSSAI: kind of business, licence eligibility and fees (revised 2 Apr 2026)](https://foscos.fssai.gov.in/assets/docs/Revised_2ndApril2026KindofBusinessEligibility.pdf)
- [BIS: National Building Code of India 2016, Part 4 – Fire and Life Safety](https://nmcnagpur.gov.in/assets/300/2025/03/mediafiles/NBC2016-Part-IV.pdf)
- [MCGM: circular on revised licence procedure u/s 394 MMC Act, 1 Mar 2016](https://crmapp.mcgm.gov.in/irj/go/km/docs/documents/CBA/Health/Circular.pdf)
- [GHMC: trade licence fee rates](https://www.ghmc.gov.in/Menu_Files/Trade%20License%20Fee%20rates.pdf)
- [Mumbai Police: frequently asked questions on licences](https://mumbaipolice.gov.in/faq)
- [Bureau of Immigration: Indian FRRO online services (Form-III reporting)](https://indianfrro.gov.in)
- [Ministry of Tourism: guidelines for hotel project approval and star classification](https://nidhi.tourism.gov.in/uploads/gallery/1667476361.pdf)