• Is any license required to make 50 people stay in your paying guest

We have a 2 floors of 170 Square yards each (total 5 rooms & 5 toilets, living area) and we are letting it out for around 50 employees of a company who will be staying in there. I am the owner & I have hired another Pg management company from Banglore who will be responsible for cleaning, care taking and rent collection.
The company whose 50 employees are coming to stay in our building has a direct contract with this management company from banglore and I the owner will be signing a contract with the management company for letting my building out

My concern is whether I will need any 

1) Health trade license
2) Fire safety clearance?
3) Since the management company and 50 employees company has a contract do I also need to get police verification done of all the 50 people staying in since they are company employees?
4)Any other requirements to run the building
5) in which category will my building (current it is mixed land use) be classified i.e whether it will be called as a guest house , paying guest or a hostel. ( We will be providing them bed , almirahs , Kitchen , A care taker & breakfast & dinner)
Asked 7 years ago in Property Law
Religion: Hindu

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3 Answers

you need licence from municipal corporation , fire safety licence , police clearance for running a guest house in your premises

2)advisable to get police verification done of 50 employees

3)if you want to run premises later for domestic / international tourists then you have to fulfil requirements laid down by department of tourism in Delhi

Ajay Sethi
Advocate, Mumbai
94720 Answers
7532 Consultations

5.0 on 5.0

1.You need first the Trade License and then further incenses and certificates like fire safety etc.

2.The property would be categorised as commercial one and he will have to take commercial electric meter as well.

3. You proeprty require registration under hospitality sector also.

Devajyoti Barman
Advocate, Kolkata
22824 Answers
488 Consultations

5.0 on 5.0

This is a rental agreement between a landlord/house owner and a tenant.

The tenant may be a company which would like to take out the premises on rent/lease for its employees.

There is nothing wrong in this rental agreement.

Besides, if you would like to offer more services like PG arrangements, you can enter into such contracts as per the terms.

Since this involves food, the safety measures which are meant for any hotel or mess have to observed as per the prevailing law.

It may include permission from local civic body, health department, fire services department, etc.,

As far as the employees details is concerned, the company has to give an undertaking that the employees are on their roll and they are liable for any untoward incident due to their employees will be their responsibility, hence police verification process may not be necessary.

Since this would be a leased out premises it may not come under guest house but since you offer the extra services for food , it may come under under PG accommodation for which the besides health safety and other permissions, it may be treated as PG accommodation on monthly rental lease agreement.

You may also take the advise of a local advocate on any further issue on this.

T Kalaiselvan
Advocate, Vellore
84921 Answers
2195 Consultations

5.0 on 5.0

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