How to set up a liquor business in India?

To set up a liquor shop in India, you need L6 License. It is a liquor license issued to the retail vendors of Indian liquor or beer. For example, License given to Liquor shops are L6 License. For premises of such liquor shops, proposals are invited by selected and approved corporations. The Excise commissioner grants the license only after looking into the suitability of such premises.  It is mainly granted to selected undertakings of state govt.

Every state has its different rules and regulations governing the sale of alcohol. For example, in Karnataka, you can sell liquor through liquor shops whereas in Kerala liquor is sold only through Government owned outlets of Kerala State Beverages Corporation.

So we will discuss the general process to be followed to set up a liquor shop in India. To set up a liquor business you need a liquor license. A liquor license is a permit given by the state excise department to those who wish to sell alcoholic beverages at a certain place.

Types of liquor license

Different types of licenses are issued by each state government. An individual or company can seek the grant of following licenses:

L1 License: For Wholesale Vendors

The primary job of L-1 Licensee is to supply liquor to the holders of Licenses of L-6, L-7, L-9, L-10, L-12, L-13, L-14, L-15, L-16, L-17, L-18, L-19, L-20, L-21, L-28, L-29 and other liquor licenses. It is granted to Company or a society or a partnership firm or proprietorship firm having licensed manufacturing units (distillery / brewery /winery/bottling plant).

L-6 License: For retail vendors

L-6 License is issued to the retail vendors of Indian liquor/beer. In regard to premises for such liquor shop, proposals are invited by selected and approved corporations. The grant of this license by the excise commissioner is given only after looking into the suitability of such premises.

L-3/L-5 Licences: For hotels

The govt. grants these licenses to hotels which are holding star classification and also the approval from Tourism Department of Govt. of India which is considered necessary for grant of License in form L-3. L-3 license empowers the hotel for service of foreign liquor to the residents in their rooms.
These hotels can also seek separate License in form L-5 for serving the liquor in exclusive bars and the restaurants in the hotel premises.

L-19 License: For clubs

L-19 license is granted to a club registered with the Registrar of Firms/Registrar of Cooperative Societies for service of foreign liquor to its members.

L-49A license: Marriages, Parties etc.

This license can be obtained on payment of Rs. 3,000/- for service of liquor in any party, function, marriage etc. at a specific premises anywhere in the State excluding public parks subject to the following conditions: -
1. The area should be away from public view.
2. Liquor should be served to adults above 25 years of age.
3. Liquor should be procured from authorized source in the State.