Obtaining a liquor license can be a long and challenging process. Each region has a regulatory agency regarding liquor licensing. In addition, many regions and cities within a region may have additional rules regarding these licensing requirements and procedures. It may not be possible to go through all of the local ordinances, but this article will give you a general idea of how to get a liquor license. Just see Step 1 below to get started.
Step
Part 1 of 3: Understanding the Types of Permissions You Need
Step 1. Know your local alcohol laws
The first thing to know is that each county has its own rules and requirements regarding the provision of liquor licenses, so you should contact your local authorities to find out about alcohol laws and the sale of permits in your own area.
- In Indonesia, liquor trading licenses are divided into two, namely: Alcoholic Drinks Sales Business Permit (SITU-MB) is a business place permit to be able to carry out business activities selling alcoholic beverages. Meanwhile, Alcoholic Drinks Trading Business Permit (SIUP-MB) is a license to be able to carry out Alcoholic Beverage trading business activities.
- Companies that want to sell alcoholic beverages must have SITU-MB and SIUP-MB permits so that the legality of their business is recognized by the Government.
Step 2. Find out if you need any other permissions
To apply for a SIUP-MB permit, you will at least need the following permit:
- Hotel/Restaurant Disruption Permit
- Disturbance Permit (HO) for the type of business selling alcoholic beverages
- Business License from the authorized agency of the parent company
Step 3. Determine the specific permission class you need
In some areas, you will need to apply for a very specific class of license, depending on the state of your business and the type of alcohol you wish to sell. Here are some examples of permission classes that are commonly applied in some countries:
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Shop Permission:
A shop permit may be required in some areas for businesses that sell food, but earn half of their overall profits by selling alcohol.
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Beer and wine:
Some smaller bars or restaurants may only be licensed to sell "soft" liquors such as beer and wine. This license does not give the owner the right to sell "heavy" liquor such as spiritus.
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Restaurant:
Restaurant licenses specifically allow any type of alcohol to be sold on the premises. However, the permit may specify that only a certain percentage of the restaurant's total profits may come from the sale of alcohol.
Part 2 of 3: Processing Permit Applications
Step 1. Start as early as possible
If you're planning to open a bar or restaurant that serves alcohol, it's important that you start the process of getting your liquor license as early as possible.
- Getting approval for a liquor license takes time – in some places it can take up to a year.
- Therefore, this should be your first consideration when planning your new business venture.
Step 2. Consider the costs
The fees for obtaining a liquor license can vary. In some cases, you'll only need to pay a few million rupiah to cover filing fees and taxes.
- Unfortunately, due to license quotas in many cities and regions, you may be required to purchase a permit from an existing bar, liquor store or restaurant. When this happens, the cost of getting your permit can shoot up to around millions of rupiah.
- When purchasing a license from another place of business, be sure to ask a lawyer (preferably one familiar with liquor licensing) to review the agreement and answer any questions you may have.
Step 3. Write a clear outline of the type of business you will run
As explained in Section 1 above, there are usually different licenses for different types of business – for example, running a local tavern would require a different license than opening a liquor store.
- Therefore, as part of your application, you will need to write a clear description of the type of business you will be running. You should include information about whether you intend to sell alcohol for on-site consumption and the percentage of alcohol sales you expect to make from your overall profit.
- You should also enter information on the type of alcohol you will serve or sell – wine, beer, liquor or a combination of the three. This is important because some types of alcohol (such as spirits) require a different license than others (such as beer).
Step 4. Fill in the required forms and provide any documentation requested
You can obtain the required forms from the local service. In some areas, you may also need to submit a permit application document to the county and city or area of business.
- Required documents include details regarding your business and your personal identity. Details such as your age, your business experience and having a clean personal history can influence the state's decision to grant you permission.
- You will also need to include a number of important documents in your permit application, which may include: firm certificate, partner approval, your company law, a copy of your proposed menu, photos or drawings of the exterior of the building and interior floor plans, compliance certificates and a copy of the place name certificate.
Step 5. Be prepared to provide supporting evidence for your application
After you submit the permit application document, a notification will be posted on the location of your proposed business, including your name, the type of permit you wish to obtain and what kind of selling rights you will get from the proposed permit.
- This notice must be posted in public within a certain time (which varies depending on the region). During this time, anyone from the local community can come and challenge your application.
- Depending on local or city laws, you may also be required to post your liquor license application announcement in the local newspaper, and in some places, reach out to local neighborhood organizations such as schools, places of worship and nearby parks.
- If there are no objections to your application, the local government will proceed with reviewing your permit application as usual. If there are objections, you may be called upon to defend your submission at a hearing before a final decision is made.
Part 3 of 3: Maintaining Your Liquor License
Step 1. Renew your liquor license annually
You will need to renew your liquor license on an annual basis, which will require you to pay a renewal fee.
Keep in mind that if you remain on good terms with your local agency throughout the year, you may be entitled to a reduced fee
Step 2. Be aware that your permission can be revoked
Understand that your permit may be revoked if you violate the terms set by your local agency.
