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Restaurant Registration in Pakistan

The restaurant business is booming not only in Pakistan but all over the world. It is one of the most successful businesses in Pakistan. If you want to establish your own restaurant, you have to get a license from the concerned authority, just like in any other country. The same system follows in Pakistan; Hotel/Restaurant Registration is mandatory for a food supplier in order to commence business in Pakistan. In Pakistan, the law relating to food items which may or may not be served in hotels and restaurants is administered under various statutes and rules. The Pakistan Hotels and Restaurants Act, 1976 and The Pakistan Hotels and Restaurants Rules, 1977 were put in place to help regulate restaurants specifically. However, the law extends to various other statutes as well, like the sales tax Act, 1990 and Income tax Ordinance,2001. Agreements are administered under the stamp act, among other things.

The law that deals with the registration and control of hotels and restaurants is mainly The Pakistan Hotels and Restaurants Act, 1976, with The Pakistan Hotels and Restaurants Rules, 1977 as a supporting document. This act covers things like classifications of hotels, how they should be managed, and rules for advertising. All restaurant and hotel owners must apply for registration with the controller before opening their business. If they do not register, they may be subject to imprisonment for up to one year and a fine of up to 500,000 rupees.

Registration of a restaurant requires the owner to meet certain standards in terms of health, hygiene, and comfort. They must also have medical certificates from staff members confirming their good health, and the restaurant building must be structurally safe. There may be other requirements in accordance with law that must also be met. After registering their restaurant, the owner is required to obtain a license from the controller. Usually, registration and the license are issued at the same time. A license granted will be valid for one year and is renewable yearly after paying the required government fee.

Our Legal Expertise

At Burhan & Associates, our expert lawyers may assist you with the following: - Obtaining registration and licensing to open a hotel or restaurant
- Providing you with a complete feasibility study and advising on the best business structure to minimize taxes and maximize profits
- Drafting the lease agreement and/or registering the ownership deed
- Brand name/trademark registration for your hotel or restaurant
At Burhan & Associates, we can help you with all aspects of employment law, from drafting contracts to negotiating the best possible tax arrangements. We can also assist you with confidentiality agreements, and all aspects of hotel, restaurant and other commercial transactions, including franchise agreements. If you are involved in a dispute with a vendor, partner, employee or customer, our lawyers can provide you with representation and advice.

FAQs

To register a restaurant in Pakistan, start by selecting a business structure (sole proprietorship, partnership, or company) and register with the Securities and Exchange Commission of Pakistan (SECP) if it’s a company. You’ll also need to get a National Tax Number (NTN) from the Federal Board of Revenue (FBR) for tax purposes, a local health certificate from your city’s health department, a food license, and a Punjab Revenue Authority (PRA) registration if operating in Punjab for sales tax on services.

You’ll need several licenses, including:
A food license from the provincial food authority (e.g., Punjab Food Authority or Sindh Food Authority)
A trade license from your local municipal authority
A health certificate from the health department
A fire safety certificate Additional registrations like NTN from the FBR and PRA (if applicable) are also essential to legally operate.

3. How much does it cost to register a restaurant in Pakistan?

Registration costs vary depending on the business structure and location. On average, obtaining licenses and fulfilling initial legal requirements may cost around PKR 50,000 to PKR 100,000. However, costs may increase depending on additional permits and provincial requirements.

The registration process can take from a few weeks to a few months, depending on the complexity of your business structure and the responsiveness of authorities. Obtaining an NTN is usually quick, but acquiring health, food, and trade licenses may take additional time as they involve inspections and verification.

Yes, a food safety license is essential. It is issued by the provincial food authority (like Punjab Food Authority or Sindh Food Authority) to ensure that your restaurant meets all food safety and hygiene standards. Without this, your restaurant may face fines, closures, or other penalties.

Opening a restaurant in a residential area is generally restricted in Pakistan, as residential zones are not designated for commercial activity. You must check with local municipal authorities for zoning laws. Some areas may permit home-based food businesses with specific licenses, but larger establishments typically need to be in commercial areas.

The Punjab Food Authority (PFA) enforces food safety and hygiene regulations for restaurants in Punjab. To operate legally, restaurants must obtain a food license from PFA, undergo regular inspections, and meet quality standards. Non-compliance can lead to fines, closures, or cancellation of the license.

Yes, you need to register your restaurant with the FBR and obtain a National Tax Number (NTN) to comply with income tax requirements. Restaurants also need to register with the PRA or Sindh Revenue Board (SRB) if they charge sales tax on services in Punjab or Sindh.

A health certificate is usually issued by the local health department after they inspect your restaurant for compliance with sanitation and hygiene standards. You can contact your local health department to apply, and they will guide you through the requirements and schedule an inspection.

Yes, a fire safety certificate is generally required for restaurants. The fire department conducts inspections to ensure that the restaurant premises meet fire safety standards, including having fire extinguishers, clear exit routes, and emergency response measures.

While not mandatory, trademarking your restaurant’s name and logo with the Intellectual Property Organization of Pakistan (IPO) is highly recommended. This protects your brand identity legally and prevents others from using similar names or logos.

Yes, foreign nationals can own restaurants in Pakistan, but they must follow additional requirements. These may include registering with the Board of Investment (BOI) for foreign investments, meeting minimum capital requirements, and obtaining a work permit if they plan to manage the restaurant directly.

Annual requirements include renewing trade and food licenses, filing tax returns with the FBR, and undergoing periodic inspections by the food authority. Some provinces may also require renewal of health and fire safety certifications.

Yes, registered restaurants may qualify for tax benefits, especially those operating under the SME (Small and Medium Enterprise) category. These businesses often have reduced tax rates and are eligible for various government incentives if compliant with tax laws.

To renew your food license, contact the relevant provincial food authority before it expires. The process usually requires an inspection to ensure ongoing compliance with food safety standards. After the inspection, you may need to pay a renewal fee for license issuance.



Lahore Office

Block E 1, Johar Town , Lahore, Punjab , Pakistan 54000
Mr. Ahmed Burhan

Faisalabad Office

Burhan Center, 97-99, Gulistan Market Railway Road, Faislabad, Pakistan
Mr. Ahmed Burhan

UK Office

Associate Office (London)
Mr. Ahmed Burhan

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