How to open a liquor shop?

Liquor Shop means how profitable the business of liquor shops can be in terms of earnings, it is estimated from this point. That no matter how much a man bargains in buying other necessary items when he reaches the liquor contract, he happily takes out the money from his pocket as much as he is asked. By the way, in a civilized and drug-free society, there is no place for alcohol i.e. alcohol, so the addiction to drinking is seen as evil. Despite this, even those who talk about ethics may consider alcohol to be the root of all evils, but the truth is that it is legally legal to start Liquor Shop Business in most states except a few states. That’s why today’s article is focused on this topic. However, for the distribution of liquor contracts in most states, a release for e-tender is issued by the Excise or Excise Department of the state government. According to this release, the persons wishing to open a liquor contract have to apply with a fixed fee. However, the process of obtaining a license and applying for starting this type of business may be different in different states.

How to open a liquor business or liquor shop

How to apply for a liquor shop business or how to start a liquor shop

Although the rules related to Liquor Shop Business may be different in each state, it is often seen that almost the same documents are asked for in all the states. Therefore, whoever wants to apply for a liquor shop, has to make a habit of reading or watching the newspaper regularly.

Because by the Excise Department of the State Government, the release of liquor contracts are issued in the local newspapers, in which full mention is made of the license fee, the location of the shop and the earnest money, etc. And it is also mentioned that the applicant can apply offline or can apply online. To make this system corruption-free and transparent, in some states, applications are sought for this only online. Whereas in other states, the traditional way i.e. offline application can be done. Apart from local newspapers, the department also issues releases on its official website, so a person who wants to do Liquor Shop business should keep visiting the official website of the excise department of that particular state.

Required Documents to Apply for Liquor Shop business How to open a liquor shop?

  • Digital Signature Certificate may be required while applying online.
  • Status certificate may be required.
  • An experience certificate may be required.
  • character certificate may be required.
  • Documents for the income tax return filed may be required.
  • PAN card may be required.
  • Aadhar card may be required.
  • Passport size photograph may be required.

Types of Liquor Licenses

Although we have also mentioned in the above sentence that the rules related to the sale, purchase, and distribution of liquor can be different in every state. Even though some states have banned liquor in the entire state, Gujarat and Bihar are examples of this. Therefore, it becomes necessary for every state to make its own rules and regulations related to liquor. That is to say, the types of Liquor Shop License can also vary depending on the state. But in most of the states, there are some similarities related to the rules, whose list is given below.

  • According to a piece of information, every state has an alcoholic beverage control department that regulates the terms of sale, purchase, consumption, and distribution of liquor.
  • Some states have license quotas to govern liquor shop businesses that limit the number of places that can sell alcohol within the state at any given time.

As far as a Liquor License is concerned, it can be divided into the following parts.

On License: This type of license is issued to those where the sale and consumption of liquor take place at the same place. Direct examples of this are bars, restaurants, hotels, courtyards, discs, etc.

Off License: This license is required when people buy liquor and take it somewhere else and drink it, direct examples of this are liquor shops or liquor shops.

How much money is needed to start a liquor shop

Often whenever a person thinks of starting a Liquor Shop business, the first question that comes to his mind is how much money is required to open a liquor shop, that is, to get its contract. Generally, starting this type of business in a good location in a city can cost Rs 25-30 lakh which does not include license fee and earnest money, etc. The determination of earnest money etc. also depends on the sale of liquor at that location in the previous financial year. Apart from this, the cost of opening a Liquor Shop in a remote area can be up to Rs 7-12 lakh. This also does not include government fees and earnest money.

Type of liquor shop

It becomes necessary to mention the types of liquor shops here because the licensing rules and fees may be different for different types of shops. For example, the fees for an English liquor contract can be higher than that of a country liquor contract. That is to say, the type of shop is determined based on the liquor sold in the shop. Where country liquor is found, it is called a country liquor shop and where English liquor is found, it is called an English liquor shop. Generally, three types of liquor shops are issued by the State Excise Department. which are the following.

  1. Country Liquor Shop: Under this category, only and only country liquor is allowed to be sold by the government at the selected place. It is meant to say that the entrepreneur applying under this category can sell and buy country liquor after getting the approval of the government.
  2. English Liquor Shop: Under this category, permission is given by the government to sell and buy English liquor to the selected entrepreneur. That is, a place from where a person can buy English liquor and beer is called an English liquor shop.
  3. Model Shop: The state government allows this type of shop to be opened in big cities where customers are not allowed to enter traditional shops. On the other hand, entering the model shop, a person can take his favorite liquor and leave after paying for it.

Why is it profitable to open a liquor shop?

Opening a liquor shop is a very profitable business from the point of view of earning, although everyone is well aware of the fact that consuming alcohol or liquor is injurious to health. But despite this, a large crowd of liquor buyers can be seen in the Liquor Shop. Although the history of liquor is very old, in ancient times even King Maharaja used to consume liquor. But at present, its trend has increased so much that people can be seen drinking alcohol on every happy or sad occasion. This is the reason that at present, a large crowd can be seen outside the liquor contracts, even if they are not on the main road but any street corner. Now since Liquor Shop Business is a suitable business from the point of view of earning, so starting such a business is not an easy task at all. And starting this type of business in any one state may be different from another state because different Excise Acts may be applicable in different states.

Things to keep in mind before opening a liquor shop How to open a liquor shop?

As we have mentioned in the above sentence that the rules regarding doing Liquor Shop business in different states may be different. But the tender system is adopted by most the state governments to distribute liquor shops. Apart from this, it is also necessary for the interested person to take care of the following things during or before doing this kind of business.

  • Since this is a very profitable business, the cost involved in starting it is also very high. Excluding the license fee etc., the entrepreneur may need to invest 25-30 lakh rupees to set up this type of business at a good location.
  • The rules related to the sale and purchase of liquor may be different in different states of the country. Therefore, before doing this kind of business, make sure to try to know about the rules and laws operating in that particular state.
  • In most states, liquor contracts are controlled by the Excise Department, so the releases in newspapers are also issued by the Excise Department of the state itself. Therefore, keep in mind that in the greed of starting a Liquor Shop business, protect yourself from any deception.
  • Keep in mind that every state has set a legal age for the consumption of alcohol, it can be anything between 18-25 years. Therefore, selling alcohol to any person below the legal age can be a legal offense.
  • Even though the rules regarding doing this kind of business are different in each state, one rule which is applicable in all the states is that Liquor License is required for the sale and purchase of liquor. And this license is granted in most states after inspecting the standards set by the State Excise Department itself.

Some of the questions related to how to start a liquor shop:-

Question:- What are the required licenses and estimated cost of owning a liquor shop, bar, or restaurant? How to open a liquor shop?

Answer:- There are various types of licenses for opening a liquor shop and for that, you may have to spend approx 10-a5-lacs on the license for running a bar, Total   it comes to around 50 to 60lacs for a new bar

Question:- How much does a liquor store earn in profit? How to open a liquor shop?

Answer:- This question depends largely on the location of the store On average, liquor stores tend to have an overall profit margin of between 20% and 30% annually. You can aim for a 50% profit margin if you choose (and are allowed to by your state). Restaurants and bars can get away with a much higher profit margin for alcoholic beverages since they’re selling by the drink/glass and not typically selling an entire bottle or 12-pack to the consumer.


Read our other Article to start your shop:-

1. How To Start Stationery Shop Business

2. How to Start a Tire Store Business

3. How to Start Sweet Shop Business

4. Bakery Shop Business Plan Complete information from cost to profit. Bakery Business Plan

5. How to start a business making Bubble Sheet

6. Business Ideas For College Students



Leave a Comment