Can night clubs be opened in cities like Lucknow-Gorakhpur, where will the approval be obtained from?

New Delhi. After the recent accident in the night club of Goa, many questions have started arising in the minds of the common man. Some people think that night clubs can be opened only in big cities like Goa, Mumbai. But, do you know that night clubs can be easily opened even in non-metro cities like Lucknow, Gorakhpur. However, it is a complicated process and it also costs more, but it is not that it can be opened only in big cities.

The UP government had liberalized the rules for opening night clubs in its state in the year 2022. This means that night clubs can be opened even in cities like Gorakhpur and Lucknow. Earlier, 200 square meters of space was required to open a night club in UP, but now this rule has been abolished. A night club is usually registered as a bar or restaurant, where services such as serving alcohol along with music and dancing are included. What is the process of opening it and how much does it cost?

How many night clubs are there in UP now?
According to an estimate, about 1,663 night clubs or bars are currently running in UP. Lucknow falls in Category 1, while Gorakhpur falls in Category 2. Permission can be obtained to open night clubs in both these cities. However, the rule is that it should be away from schools, temples and residential areas, while it can be opened only till 1 am in the night. In some cities, there may be a change in this time depending on the local conditions.

What is the process of opening?

• If you want to open a night club, you can register your business as Private Limited or LLP or Partnership.
• For this it is necessary to be above 21 years of age. Besides, registration will also have to be done regarding environment, fire department and health standards.
• In Tier-II cities like Lucknow and Gorakhpur, the cost of opening a medium-sized night club i.e. around 1,000 or 1,200 square feet can be Rs 40 to 80 lakh.
• To open such a big night club in big cities, Rs 1 to 2 crore will be required. This cost may vary depending on the location and city.

Where do the costs come from?

• To open a night club in the city, the monthly rent can be Rs 1 to 2 lakh and you should start by collecting 6 months advance rent.
• The setup of a night club will cost Rs 5 to 10 lakh, while the cost of dance floor, sound and light, furniture and bar counter can also be around Rs 15 lakh.
• Appliances like fridge, AC and coolers can also cost Rs 10 lakh.
• Apart from this, getting an annual liquor license can also cost Rs 10 to 15 lakh.
• 8 to 10 lakh rupees may have to be spent on purchasing beer, whiskey etc. as inventory in the club.
• Apart from this, you may have to spend Rs 5 lakh on staff, Rs 2 to 3 lakh more on advertising and marketing.

How much money will be earned
If a night club is opened at a good location, it can generate huge income. As you saw above, the cost of opening a night club in 1,200 square feet was around Rs 50 to 80 lakh, whereas the estimated return from it is Rs 20 to 25 thousand per day. Banks can also easily give you loan under MSME scheme for funding. This means that you can earn a revenue of Rs 5 to 7 lakh in a month.

Where will we get approval for this?

• Approval to open a night club is obtained from the UP Excise Department, but approval has to be taken from many other departments also. This entire process may take about 6 months. Along with environmental clearance, you will also have to take approval from the fire department and police department.
• For approval, first of all the company will have to be registered on the MCA portal and a trade license will have to be obtained from the Municipal Corporation.
• You have to apply on the official website of Excise Department of UP, excise.up.nic.in, where along with filling the form, upload your documents.
• Apart from Excise Department, Food Safety Approval on FSSAIfssai.gov.in, NOC from Fire Department and Health Clearance from Municipal Corporation.
• You will get approval within 30 days, which will have to be renewed on an annual basis.