How to Start Liquor Business in India

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How to Start Liquor Business in India

Liquor stores can be found in almost every corner of India, especially in the metropolitan cities. If you’re planning to start a liquor store in India, then check out this blog post! 

Why Start a Liquor Store?

According to a Statista Report, “Alcohol consumption in India amounted to about five billion liters in 2020 and was estimated to reach about 6.21 billion liters by 2024. The increase in consuming these beverages can be attributed to multiple factors including the rising levels of disposable income and a growing urban population among others.” 

Based on this, we can say that the growing alcohol consumption in India could be a promising business opportunity for those who are considering establishing a liquor store. The market for alcohol consumption is clearly expanding. This growth is driven by factors like increasing disposable income among individuals and rapid urbanization. These factors have made consumption of alcohol more accessible as well as socially acceptable. 

By starting a liquor store, you can meet this demand and sell liquor to customers, including casual drinkers and elite aristocrats looking for premium liquor options. The ever-rising trend in consumptions points towards a stable and potentially profitable business opportunity. 

How to Start a Liquor Store: Requirements

You cannot just set up a liquor store right away. It requires careful planning and obtaining all the required permits and licenses. In this section, we will discuss all the requirements pertaining to setting up a liquor shop in India:

Business Plan

To open a liquor store, you need to have a proper business plan. You must conduct market research, and choose to open your store in an area where people often purchase liquor. If you want to target premium customers, then you can open your liquor store at a mall. 

If you want to target all kinds of customers, you can open your liquor store near a busy street or an area with high foot traffic. With that being said, you must have a budget for the store. So, you must make sure the location you choose lies in your budget. 

Company Registration

After coming up with the business plan, you must choose the business structure for your company, such as a private limited company, partnership, etc. Once decided, you must file a company registration application with the Registrar of Companies (RoC). 

Alongside the application, ensure you attach all the necessary incorporation documents like Memorandum of Association and Articles of Association that outline your intention to serve as a wine and beer shop. Once RoC approves your application, you will be granted a certificate of incorporation.

Collect Documents and File Liquor License Application

The most crucial requirement for starting a liquor business is securing the legal permit. For retail sale of Indian and foreign liquor, a liquor store needs to obtain liquor license from the Excise Department. 

In Delhi, you can apply for liquor license by visiting the Delhi Excise Department website, downloading the appropriate application form, completing it with all required information, and submitting it along with necessary documents and fees. 

The documents required for a liquor shop include:

• A photograph of the applicant.

• Proof of the applicant’s identity, address, and legal possession of the shop, such as a lease or rental agreement.

• The shop’s detailed floor plan.

• NOCs from the state fire department and the municipal corporation.

• An application containing personal and company details must be submitted by the applicant.

• The latest copy of the Income Tax Clearance Certificate and ITR filing.

• An affidavit declaring that the applicant has no criminal record.

• Several affidavits in the applicant’s name.

Make sure all these documents are in place before you begin the application process.

Grant of Liquor License

Once the Delhi Excise Department receives your application, it’ll carefully examine it along with all the attached documents. Once the department is satisfied with the application, you will be granted the liquor license allowing you to open a retail liquor store where you can sell Indian and imported liquor to customers. 

Additional Requirements

Apart from Liquor License, you must also obtain a trade license. MCD trade license is mandatory for any establishment, including liquor stores, operating within the Municipal Corporation of Delhi’s jurisdiction under Section 417 of DMC Act 1957.

To get this license, you must visit the MCD department for licensing, and request an application form and fill it with all the necessary details. Along with this, you must attach necessary documents and pay the prescribed application fee.

Unlike many businesses in India, you do not need GST registration for liquor stores that deal exclusively with the sale of alcoholic liquor for human consumption. This is because alcohol for human consumption is outside GST’s scope. Instead of GST, liquor is subject to state excise duty and VAT, both which are levied by the Delhi Government.

Key Considerations For Opening a Liquor Shop

Before you open a liquor store, here are some things you need to keep in mind:

• You cannot legally run a liquor store unless you obtain a liquor license. There are different types of liquor licenses for different requirements, so make sure you secure the appropriate license as per your business requirements.

• You must get an NOC from your local authorities to ensure compliance with local laws and zoning regulations.

• Make sure you renew your licenses in a timely manner to ensure smooth and continuous business operations. 

• Make sure you only sell liquor to those who are 25 years of age or older. Selling alcohol to those under 25 years of age is illegal in Delhi. If your liquor store is found to be serving alcohol to individuals who are younger than this age, you can land in trouble and your liquor license can be revoked.

Conclusion

In 2025, one of the most profitable business ideas is opening a liquor store. Because of the increasing disposable income and rapid urbanization, the demand for liquor has been growing steadily. If you want to open a retail liquor shop, make sure you meet all the legal requirements, including company registration with RoC, obtaining liquor license and health trade license, etc. If you need assistance in creating a business plan, or in the company registration process, connect with consultants at Registrationwala for assistance. We will help you make sure you meet all the requirements to operate your business legally and hassle-free!

Disclaimer: Alcohol is harmful for human consumption and may cause health issues, including addiction, liver damage, and other serious health complications. If you choose to open a liquor store, it is your sole decision and responsibility. Registrationwala is not responsible for any consequences, legal issues, or damages arising from the operation or consumption of alcohol from your liquor store. Please comply with all applicable laws and regulations in your state.

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