L-17 Licence for Independent Restaurants & Bars in Delhi (Up to 50 Seat Covers): Process, Documents & Fees

To run an independent restaurant in Delhi that serves alcohol requires compliance with the Delhi Excise Act, Rules, and annual policy notifications issued by the Excise Department, Government of NCT of Delhi. If your restaurant has a seating capacity of up to 50 seats and intends to serve liquor for consumption within the premises, obtaining an L-17 licence is mandatory.

This blog explains the eligibility conditions, business structure, officially notified licence fee for the excise year 2025–26, documents required and application process for independent restaurants with seating capacity up to 50 in Delhi, in line with the current official framework.

What Is an L-17 Licence?

The L-17 licence is an excise licence granted to independent restaurants in Delhi, permitting the service of liquor for consumption within the licensed premises only.

Under the prevailing excise framework: -

• The L-17 licence permits the service of Indian liquor
• Permission to serve foreign liquor is granted on payment of an additional prescribed fee, commonly referred to as L-17F
• The licence applies only to stand-alone independent restaurants
• Hotel bars, clubs, banquet halls, and lounges fall under separate licence categories

Important clarification: -
While the term L-17F continues to appear in official fee notifications for foreign liquor, it operates as an additional permission under the L-17 licence and not as a separate, standalone licence.

What Qualifies as an Independent Restaurant (Up to 50 Seat Covers)?

To qualify for an L-17 licence, the restaurant must: -

• Operate as a stand-alone food establishment
• Not be attached to or operated as a hotel, club, or guest house
• Be located in a commercially approved area
• Have fixed and clearly defined seating
• Declare a seating capacity not exceeding 50 seat covers
• Function primarily as a restaurant and not merely as a bar
• Have an approved layout/site plan showing: -
• Dining area and seating
• Bar counter
• Service area
• Washrooms and access points

The declared seating capacity determines the applicable licence fee slab.

Is Company Formation Mandatory?

No. Company formation is not mandatory.

An L-17 licence can be issued to: -

• Sole Proprietorship
• Partnership Firm
• Limited Liability Partnership (LLP)
• Private Limited Company

The licence fee remains the same regardless of the business structure.
For restaurants with up to 50 seat covers, proprietorships and LLPs are commonly chosen or preferred due to simpler compliance requirements.

Application Process for L-17 Licence

Step 1: Eligibility Check

Ensure that seating capacity does not exceed 50, the premises are in a commercial zone and municipal approvals are in place.

Step 2: Document Preparation

Prepare and compile the complete set of required documents, affidavits, and layout plans.

Step 3: Online Application

Submit the L-17 application online through the Excise Department portal by clearly mentioning the seating capacity and also the liquor permissions sought.

Step 4: Payment of Fees

Pay the prescribed annual licence fee, including the foreign liquor permission fee if it’s applicable.

Step 5: Inspection & Verification

Excise authorities may inspect the premises to verify and examine the seating capacity, layout conformity and compliance with various safety norms.

Step 6: Grant of Licence

Upon successful verification and approval, the L-17 licence is issued for the relevant excise year.

Documents Required for L-17 Licence (Up to 50 Seats)

Document requirements may be updated by departmental orders. Generally, the following are required: -

Business & Identity Documents

• PAN of the business entity
• PAN and Aadhaar of the proprietor/partners/directors
• Partnership Deed / LLP Agreement / MOA & AOA (as applicable)
• Board Resolution or Authorisation Letter

Premises Documents

• Ownership proof or registered lease deed
• Site plan and seating layout plan (up to 50 seats)
• Photographs of the premises

Municipal & Statutory Approvals

• Trade / Health Licence from MCD or NDMC
• Shop & Establishment Registration
• GST Registration Certificate (where applicable)
• Fire safety NOC or prescribed self-certification

Certain approvals, such as police or eating house certificates, are subject to policy changes and may be relaxed or modified by the department.

Excise-Specific Documents

• Affidavit declaring seating capacity
• Affidavit of compliance with Delhi Excise Act & Rules
• Declaration of authorised signatory
• Undertaking regarding non-service of alcohol to minors
• Proof of payment of the licence fee

Document requirements are subject to change based on annual excise policy notifications and departmental circulars.

Official Licence Fee for Restaurants Up to 50 Seat Covers

Excise Year 2025–26 (Delhi)

As per the officially notified fee structure: -

• L-17 Licence (Indian Liquor): ₹13,55,232
• Foreign Liquor Permission (L-17F – 10%): ₹1,35,524

Total Annual Licence Fee:₹14,90,756

The fee is payable annually at the time of grant or renewal and is subject to revision by the Excise Department in future excise years.

Key Compliance Conditions After Grant

• Liquor may be served only for consumption within the premises
• No takeaway or retail sale of sealed liquor bottles
• Alcohol service only during permitted excise hours
• Sale or service to persons below the legal drinking age is prohibited
• Licence must be renewed annually
• Seating capacity cannot be increased without prior approval

Conclusion

For an independent restaurant in Delhi with up to 50 seat covers, an L-17 licence is legally mandatory to serve the alcohol. Permission to serve foreign liquor (commonly referred to as L-17F) is granted as an additional endorsement under the same licence.

By understanding the various aspects such as official fee structure, documentation requirements and various compliance obligations, restaurant owners can avoid regulatory issues and operate smoothly within the Delhi excise framework.