The Complete Compliance Checklist for Restaurants and QSRs in India

Running a restaurant or QSR in India means juggling food safety, labour, fire, and tax compliance simultaneously - miss one and you risk fines, licence suspension, or a forced shutdown during inspection season.

Key facts at a glance

• FSSAI Registration applies up to Rs 12 lakh turnover; the State Licence threshold has been raised to Rs 50 crore, above which a Central Licence is required.
• FSSAI licences and registrations issued from 1 April 2026 no longer carry a fixed expiry date - they run until suspended, cancelled, or the business closes.
• ESI is mandatory once a restaurant employs 10 or more persons; the wage ceiling is Rs 21,000/month (Rs 25,000 for employees with disability).
• EPF becomes mandatory at 20 or more employees, with a wage ceiling of Rs 15,000/month and 12% contribution from both employee and employer.
• A POSH Internal Committee is mandatory for any restaurant with 10 or more employees.
• GST registration is generally required once aggregate turnover crosses the applicable state threshold, and restaurant services typically attract GST on the bill value.

FSSAI licensing and food safety

Every restaurant, QSR, or cloud kitchen needs either an FSSAI Registration or Licence depending on turnover - this is non-negotiable and is usually the first document an inspector checks. Under the 2026 amendment rules, inspections have also shifted from a fixed calendar schedule to a risk-based model, which can include third-party audits when directed by the authority.

Beyond the licence itself, food handlers should hold valid health/medical certificates, and the kitchen must follow basic hygiene and labelling norms for any packaged items sold (like sauces or takeaway combos). Menus displaying allergen or nutritional claims should be accurate, since FSSAI treats misleading labelling as a compliance violation, not just a marketing issue.

Fire and premises safety

Restaurants that use LPG cylinders, commercial gas pipelines, or have seating above the ground floor typically need a Fire NOC from the local fire department before opening, and periodic renewal thereafter. Requirements - including fire extinguisher counts, exit signage, and electrical load certification - vary by state and municipal corporation, so a checklist built for one city may not fully apply in another.

A trade licence from the municipal corporation is also standard practice, alongside a Shops and Establishments registration, which governs working hours, weekly offs, and display of the licence on premises.

Labour compliance: PF, ESI, wages, and POSH

Once staffing crosses the relevant thresholds, restaurants take on the same core labour obligations as any other employer:

Restaurants also employ a large share of contract, part-time, and gig-style staff (delivery riders, weekend help), which raises questions about minimum wages, overtime, and whether such workers fall under contract labour rules - an area actively evolving as the new Labour Codes get notified state by state.

GST and billing compliance

Most restaurants need GST registration once turnover crosses the applicable threshold, and standalone restaurant services generally attract GST on the bill amount without input tax credit, though rates and treatment can differ for restaurants inside hotels above certain room tariffs. Billing software should generate GST-compliant invoices, and QSRs running loyalty or discount schemes need to apply GST correctly on the discounted value.

Weights, measures, and consumer protection

Restaurants selling packaged beverages, bottled water, or retail food items should check Legal Metrology rules on declared quantity and MRP labelling. Consumer complaints about billing transparency, service charge disclosure, or food quality can also trigger scrutiny under consumer protection law, so menus and bills should clearly disclose any mandatory or optional charges.

Putting it together for multi-outlet chains

A single-outlet cafe and a 40-store QSR chain face the same categories of compliance, but the chain multiplies the paperwork - each outlet typically needs its own FSSAI registration/licence (unless covered as an additional premises under a Central Licence), its own trade licence, and its own Fire NOC, even under one parent company. Centralising PF/ESI registration at the company level while tracking outlet-level licences separately is the most common structure used by growing chains.

If you are not sure where your restaurant or QSR stands across food safety, labour, and premises compliance, ComplianceCheck's food business assessment gives you a clear picture in a few minutes.

Sources

• FSSAI - fssai.gov.in
• Employees' Provident Fund Organisation (EPFO) - epfindia.gov.in
• Employees' State Insurance Corporation (ESIC) - esic.gov.in
• Ministry of Labour and Employment - labour.gov.in
• GST portal - gst.gov.in
• Respective state fire department and municipal corporation websites

This guide is general information, not legal advice. Requirements vary by state, sector and headcount - confirm specifics with a compliance professional or the relevant authority.