Which licenses are needed before buying coffee machines?
Opening a coffee shop starts with a business license. The shop needs a clear name, an accurate address, capital, an approximate business scope, a legal representative and a management organization. The business scope must include catering management, and direct storefront trading can begin only after the competent industry authorities grant permission.
Registration paperwork goes to the industry and commerce department within 30 days of approval, beginning with a name pre-approval notice. Food business permits, health, tax and fire safety approvals follow, along with special approvals for alcohol and roasted coffee. Site selection, startup capital estimates and coffee machines are practical planning points alongside the coffee restaurant menu.
Wanting to open a coffee shop—having the funds in place is only the first step. What really gives many entrepreneurs a headache is the complicated and tedious licensing procedures. From business registration and food business permits, to health, tax, and fire safety, and then to the special approvals for alcohol and roasted coffee, each one determines whether the shop can operate legally. This article will systematically sort out the various licenses and application processes needed to open a coffee shop, helping you clarify your thinking and avoid detours. At the same time, we will also discuss practical points such as site selection strategy, startup capital estimation, and equipment procurement. At the end of the article, Front Street Coffee's contact information is attached. You are welcome to exchange ideas about specialty coffee bean selection and shop-opening experience.
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Today, let's talk about the process of opening a coffee shop. Of course, first you need funds. Once you have the funds to open the shop, you still need to apply for licenses. So what licenses are needed to open a coffee shop?
First category Business license
Opening a coffee shop should meet certain basic conditions, such as having a clear name, an accurate address, a certain amount of capital, an approximate business scope, a legal representative, and a corresponding management organization.
The first step is to apply for a business license. The business scope needs to include catering management. Direct storefront business activities can only be carried out after obtaining permission from the competent industry authorities.
To apply for opening registration for a coffee shop, within 30 days after approval by the competent department or approval authority, a registration application must be submitted to the competent industry and commerce department in charge of registration. A coffee shop applying for opening registration should first apply for the coffee shop name. After approval, it should take the "Coffee Shop Name Pre-Approval Notice" to the competent industry and commerce department in charge of registration to obtain the "Coffee Shop Opening Registration Application Form."
The main items for registration are: coffee shop name, domicile, economic nature, business scope, business method, registered capital, number of employees, business premises area, operating term, and branch offices. The main items for a coffee shop's business registration application include the following:
The name of the coffee shop. Within the city or county where registration is applied for, the same trade name shall not be the same for businesses in the same industry. A coffee shop may have a seal made according to the registered trade name and submit it to the originally registered industry and commerce administrative authority for filing. A coffee shop without a trade name shall not be registered.
When applying for opening registration, the following documents and certificates shall be submitted:
(1) A registration application signed by the person in charge of formation.
(2) Approval documents from the competent department or approval authority.
(3) The organizational charter or partnership agreement.
(4) Capital credit certification, capital verification certification, or capital guarantee. The capital verification certification shall be issued by an audit department designated by the industry and commerce bureau after capital verification. During capital verification, cash must be deposited into a temporary bank account designated by the industry and commerce bureau, and for physical goods, purchase invoices or legally effective appraisal reports shall be provided. The proof of use of the business premises shall be issued and signed and sealed by the property owner, along with a housing lease contract.
(5) Identification proof of the main person in charge of the coffee shop.
(6) Proof of use of the domicile and business premises.
(7) Approval documents and certificates from environmental protection and other administrative management departments, as well as other relevant documents and certificates.
After approval and registration by the industry and commerce department, a coffee shop legal person business license shall be issued to the coffee shop, and a business license shall be issued to a non-legal person coffee shop or a non-independently accounted branch of a coffee shop. Before receiving the business license, the coffee shop operator may not engage in business activities in the name of the coffee shop. The date of issuance of the business license shall be the date of establishment of the coffee shop.
Second category Approval of food business items
The date of issuance of the food business license shall be the date the licensing decision is made, and its validity period shall be 5 years.
In the industry classification of catering industry management, a coffee shop belongs to a beverage shop; however, some coffee shops are actually cafes, which not only provide coffee beverages but also prepare and process on site and provide meal services, so they need to be included in the management category of small restaurants (snack shops).
When a coffee shop applies for a food business license, according to the specific business scope, it may simultaneously apply for items including online projects, on-site preparation and sales projects, and dessert station projects.
1. Food business licensing management
To apply for a food business license, the following materials shall be submitted to the market supervision and management department of the area where the applicant is located:
(1) Food business license application form;
(2) A copy of the business license, or a copy of other subject qualification certification documents (for those not yet obtained, a copy of the document agreeing to establishment by the competent department);
(3) Documents such as the layout of main equipment and facilities suitable for food business and the operation process (indicating the use of the business premises, area, and location of equipment and facilities);
(4) Rules and regulations ensuring food safety;
(5) For catering service operators that generate kitchen waste oils and food sales operators engaged in on-site preparation and sales, a management system for kitchen waste edible oils (including declaration of generation of kitchen waste oils, collection and transportation contracts, collection and transportation manifests, record ledgers, and the installation and use of oil-water separators by catering service providers, etc.);
(6) Rules and regulations ensuring public place hygiene for all types of restaurants and beverage shops (including eateries, coffee shops, bars, and tea houses);
(7) Other materials stipulated by laws, regulations, and rules.
Note: After the new regulations took effect in 2017, the previously required "Public Place Sanitation License," "Food Circulation License," and "Catering Service License" were also integrated into the food business licensing management measures.
Obtaining health certificates and sanitation licenses
Every employee (including the shop owner) needs to obtain a catering employment health certificate.
To apply for a sanitation license, an application should first be submitted to the health supervision department of the local people's government at or above the county level, such as the sanitation section of the county (district) health and epidemic prevention station. The specific procedure is as follows: first obtain a health certificate, then apply for a sanitation license, undergo training, and after passing, be issued a sanitation training qualification certificate.
According to the provisions of the Food Hygiene Law, personnel engaged in food production and operation need to undergo a health examination and may only start work after obtaining a "Health Certificate." The examination should generally be conducted at a health department at or above the county level. General examination contents include checks of the heart, lungs, abdomen, liver, skin, hepatitis B vaccination status, and other aspects.
After receiving the health certificate, one may apply to the health supervision agency for a sanitation license. The health and epidemic prevention station will send staff to the coffee shop for inspection and guidance. The coffee shop needs to provide a floor plan of the coffee shop for review by the epidemic prevention station staff.
Next, the health supervision agency will send personnel to conduct hygiene inspections on the site selection and design of the coffee shop's demolition, construction, expansion, and decoration projects to see whether they meet hygiene and safety requirements. Hygiene measures for the coffee shop shall be formulated in accordance with the provisions of the Food Hygiene Law of the People's Republic of China.
After passing inspection by the health and epidemic prevention station, the "Public Place Sanitation License" shall be issued.
Third category Handling tax registration
Within 30 days from the date of receiving the business license, the coffee shop shall declare and handle tax registration with the competent tax authority. It shall obtain and truthfully fill out the tax registration form at the competent tax authority.
The tax registration form generally includes the following contents:
(1) The name of the coffee shop, the name of the legal representative or owner, and the number of their resident identity card or other legal certificate.
(2) Domicile and business address.
(3) Economic nature.
(4) Coffee shop form and accounting method.
(5) Business scope and business method.
(6) Registered capital, total investment, bank of account opening, and account number.
(7) Operating term, number of employees, and business license number.
(8) Financial person in charge and tax handling personnel.
(9) Other relevant matters.
When filling out the tax registration form, the following certificates and materials shall be provided according to different circumstances.
(1) Business license.
(2) Relevant contracts, charters, and agreements.
(3) Bank account certificate.
(4) Resident identity card and other legal certificates.
Fourth category Renovation and decoration require handling
Construction permit
Construction permit: construction bureau construction plan, geographical location, design qualification drawings, and construction unit qualification certificate.
Fire safety approval
In addition to handling environmental protection approval procedures, operators also need to go to the fire department of the public security bureau in their area to handle fire safety approval procedures. When handling it, an application form, a location plan of the coffee shop, and a layout plan of the coffee shop must be submitted, and then the "Fire Safety Key Industry Approval Form" shall be obtained and filled out, with fire prevention inspectors sent by the fire department to inspect and accept it.
Fifth category Other licenses
If the coffee shop also sells alcoholic products or roasts its own coffee, it also needs to apply for other licenses:
Alcohol retail license
Open production license for roasted coffee
Sixth category Determine the business content and target consumer group, location, location, and location again.
Site selection is a crucial matter in coffee shop investment. If you have already decided to invest in a coffee shop, then the next task is to search tirelessly for the best business location. Usually we will ask investors to choose a location, choose a location, and choose a location again. Because being close to the customers who support your business is crucial; they are the foundation of your survival. When choosing a location, count the customers there, chat with nearby merchants, and learn about the situation there—what times the customer flow is larger, and what kind of people come there to spend money.
Calculate startup capital.
Purchase coffee machine equipment: coffee machines, grinders, etc.
Design the coffee menu.
Find coffee suppliers, dairy suppliers, seasoning and other food suppliers, and sources for other non-coffee beverages, paper products, utensils, etc.
Formulate a marketing plan, hire employees, and prepare training materials.
The above content is compiled by CoffeeHunters, a coffee news website.
