Hospitality law for Masters. #RTMNU SYLLABUS COVERED #MASTERS IN HOSPITALITY MANAGEMENT #HOTEL LAWS #HOTEL LICENSES #TOURISM LAWS

3. • FHRAI stand for Federation of Hotel and Restaurant Association of India. It’s body who controls Hotels and
Restaurants in India. Established in the year 1955.
• FHRAI is the national organization representing the hospitality industry in India. The organization’s
mission is to promote and protect the interests of the hospitality industry, and to provide its members
with a range of benefits and services.
• The Federation of Hotel and Restaurant Association of India (FHRAI) formed in 1954.
• The organization works to promote the growth and development of the hospitality industry in India. And
to advocate for the interests of its member businesses. Some of the key activities of the FHRAI include
working with government agencies and policy makers on issues related to the industry, providing training
and education to industry professionals, and hosting events and conferences to facilitate networking and
knowledge sharing among members.
• FHRAI was formed by the four Regional Associations functioning in the country viz. Hotel and Restaurant
Association of Eastern India: Calcutta; Hotel and Restaurant Association of Northern India, New Delhi :
Hotel and Restaurant Association of western India, Bombay and the South India Hotels and Restaurants
Association, Madras.

4. • The business of federation is managed by an Executive Committe comprising 24 members, 6 from each region.
• FHRAI secretariate is functioning from New Delhi with Secretary Genaral, Joint Secretary, Deputy Secretary and
other staff.
• The FHRAI is the Member of International Hotel Association.
• FHRAI is managed by the Executive Committee headed by the elected President having tenure of one year. The
Executive Committee comprises of members from the four Regional Associations. The day-to-day business is
conducted by the Secretariat headed by the Secretary General.
• FHRAI provides an interface between the Hospitality Industry, Political Leadership, Academics, International
Associations and other Stake Holders.

5. REGIONAL ASSOCIATATIONS

6. OBJECTIVES OF THE FHRAI
• Unite the four Regional Associations in a representative national organization
• Create a national fraternity of the hotel and restaurant establishments located all over India.
• Consider and take decision on all questions of interest to the hotel and restaurant industry.
• Act as an information center and disseminate statistical and other information concerning the hotel and
restaurant industry and advise it’s members on matters of importance to them.
• Promote and market the hospitality industry of India, especially hotels and restaurants in the national and
international market.
• Coordinate and liaise with the ministry/Department of Tourism and other concerned Department/Agencies of
the central and state governments to achieve accelerated growth of hotel and restaurant.
• FHRAI has been helping the Government in the decision making process.
FHRAI acts a eyes and ears of the Government in the hotel and restaurant sector.
For example, it keeps the Government apprised of the developments in this area and constantly reminds
it about the problems faced by the industry.

7. FUNCTION OF FHRAI
• Professionalism: The FHRAI promotes professionalism in the hospitality industry, and encourages its members
to adhere to high standards of service, quality, and ethical conduct.
• Sustainability: The FHRAI supports the principles of sustainability and environmental responsibility. And
encourages its members to adopt eco-friendly practices.
• Innovation: The FHRAI encourages innovation and the adoption of new technologies in the hospitality industry,
in order to improve the quality of service and the efficiency of operations.
• Collaboration: The FHRAI promotes collaboration and partnership between its members, as well as with other
industry stakeholders, in order to drive the growth and development of the hospitality industry.
• Community engagement: The FHRAI encourages its members to be active and engaged members of their local
communities, and to contribute to the social and economic development of the region.
• Research and Publication : FHRAI publishes monthly magazine, industrial survey, research reports,
compendium. These publication mostly covers vita; updates on legal matters, government notification, articles
on key trends in Indian and Global Hospitality Industry.

8. FUNCTION OF FHRAI
• Seminars and Conferences : FHRAI regularly conduct seminars, conferences and workshop across the country
on wide range of technical topical issues of the interest of members.
• Representation and Lobbying- FHRAI actively engages with government on multiple issues and robustly
represent the views and concerns of its members. FHRAI continuously provide legal relief by monitoring
various legal and regulatory development and obtain timely and effective redressal fir its members.

9. Licenses and Registration Required for Hotel Business
• Building Permit
All hotels must have a proper building permit as per the relevant Town Planning Act or Development Act or
Municipal Act, or any other applicable statutes for layout, building plans, water supply, sewerage, drainage,
electrification, etc, when applying for a building permit following documents needs to be submitted : Proof of
ownership of land, certificate from engineer and architech, layout plan etc.
• Fire Safety Permit
A fire safety certificate or permit required for the Fire Department is a must for operating a hotel business. A fire
safety certificate is usually provided if the building has incorporated proper fire prevention and fire safety measures
as required under the relevant fire safety rules and regulations. A No Objection Certificate (NOC) has to be
obtained from fire department.

10. • Police License for Hotel / Boarding and lodging license
Hotels are public places that are monitored closely by the Police Department. Therefore, all hotels must maintain a
proper log of all Guests who have stayed at the hotel, follow relevant regulations and maintain a valid permit from
the Police Department. Police license for hotels usually falls under the power of licensing Places of Public
Entertainment held by the Commissioner or Additional Commissioner of Police.
• Health Trade License or Trade License
A health trade license is usually required from the local Health Department for restaurants and hotels. Health
trade licenses are usually issued by the Municipal Corporation. A health trade license is required for businesses
that have a direct impact on public health. Compliance with the relevant hygiene and safety norms, which are
important for public health, is a prerequisite for the issuance of a health trade license.

11. • Business Registration
It is recommended that a hotel be set up under an artificial legal entity like a company or LLP. By operating a
company under an artificial legal entity, the liability of the promoters with respect to the business can be limited
and the business as a going concern would be easily transferable to another person. However Hotel can be run
under Partnership Firm or Sole proprietorship
• ESI Registration
ESI is an autonomous corporation under the Ministry of Labour and Employment, Government of India.
Employee’s State Insurance (ESI) registration is mandatory in India for Businesses that employ 10 or more
employees. To maintain compliance with the ESI Regulations, the employer must contribute 4.75% of the wages
for all employees earning Rs.15, 000 or less toward ESI employer dues. The employee is required to contribute
1.75% of his/her wages as ESI dues.

12. • PF Registration
An Employee Provident Fund (PF) Registration is required for any establishment that employs more than 20 persons
in India. The PF Board administers a contributory provident fund, a pension scheme, and an insurance scheme for
the workforce engaged in the organized sector in India.
 Bar License
If the hotel operates a bar or serves alcohol in the restaurants, a Bar license will be required from the relevant
authorities. Bar license is usually provided by departments operating under the State Government. Hence, the
requirement for a bar license varies from state to state.
• FSSAI Food Business License
An FSSAI food business license The Food Safety and Standards Authority of India (FSSAI)under the Food Safety
and Standard Act is required for operating a restaurant in India. The FSSAI food business license is usually
provided for one year and is renewed at the end of each year. FSSAI license for restaurants is managed by the local
FSSAI office. The FSSAI is a single point contact for all matters related to food safety and standards.

13. • GST Registration
Prior to the introduction of GST a restaurant’s bill comprised VAT, services tax, and service charge. However, after
2019, indirect taxes collected on the sale and purchase of goods and services in India have been absorbed by the
GST Registration Limit regime of indirect taxation.
• Eating House License
Every area where the public is allowed and where any kind of food or drink is provided for consumption on the
premises is referred to as an eating house. The Eating House License is issued by the city’s Licensing Police
Commissioner.
• Lift Clearance License
If your hotel is multi-storied and you want to operate a lift, you will need to get permission to do so. After
verifying the installation of the lift, structure, safety gears, and other products, the Electrical Inspector issues this
license from the Labour Commissioner’s office. For receiving lift clearance, state-specific applications are
available.

14. • Music License
Suppose your hotel outlet is playing any recorded music or video. In that case, you must obtain a license in
compliance with the Copyright Act of 1957 issued by Phonographic Performance Limited or the Indian Performing
Right Society.
• Certificate of Environmental Clearance (CEC)
This permit is required as a part of the Environmental Management Act under the Ministry of Environment and
Forests for a specific type of project. An assessment is done to rule out any negative environmental impact by the
CEC authority post-filling out a questionnaire. The restaurant is responsible not only for the health of its customers
but also for the environment. As a result, restaurants must still apply for a Certificate of Environmental Clearance.
• Registration under the Weights & Measures Act

15. • Registration & Permits under the Motor Vehicle Act for Tourist Coaches / Taxies
• Income tax Registration and Returns:
• NOC from Ministry of Tourism:
Additionally, Registration and functioning of hotels in India required permission to be obtained from the
Ministry of Tourism.
• License for Chimney under the Smoke Nuisance Act.
• License to deal in Foreign Exchange under FEMA

16. • Foreigners Regional Registration
Under the Foreigners Act 1946 hotels are required to furnish details of all foreign nationals to the foreign
Regional Registration Office (FRRO), Bureau of Immigration.
• Restricted Money Changers License from RBI
RBI issue restricted money changer license to hotels enabling the front office cashier to exchange foreign
currency as well as to accept foreign exchange towards the settlement on guest bills.
• Swimming Pool and Cooling Tower Permission form Police
This is given after all the safety aspects of the swimming pool and the installation of the cooling tower have
been checked by the police.

17. DAILY TASK
• Visit - https://www.fhrai.com/
• WHAT IS FHRAI HOTEL MEMBERSHIP CRITERIA ?
• WHAT IS FHRAI RESTAURANT MEMBERSHIP CRITERIA ?
• FIND OUT ANY OTHER LICENSES AND REGISTRATION FOR HOTEL
BUSINESS

18. ANY QUESTIONS OR DOUBTS ?

19. Adv. Rushikesh R Maddalwar
+91 7507008447
rushikeshmaddalwar24@gmail.com
Faculty for Hospitality Law