Procedure for Preparing an Application for an On-Premises Alcohol Sales Registration 

Table of Contents

An On-Premises Alcohol Sales Registration must be identified correctly before a restaurant begins operations because choosing the wrong licensing route may delay opening timelines, increase dossier revision costs, and create inspection risks. For restaurants selling alcoholic beverages for customers to consume at the place of sale, this registration is required, as “on-premises alcohol sales” means selling alcoholic beverages for immediate consumption at the sale location under Clause 5, Article 3 of Decree No. 105/2017/ND-CP.

If the restaurant also sells bottled or canned alcohol for takeaway or operates a packaged liquor retail counter, the business should review Legal Updates and standardize its licensing dossier with Long Phan Consulting.

Procedures for obtaining An On-Premises Alcohol Sales Registration for restaurants.
Procedure for setting up a permit application file

Important Legal Notes:

  • Restaurants serving alcoholic beverages for customers to consume at their tables are not required to obtain a retail liquor license; instead, they must complete the Registration for On-Premises Alcohol Sales.
  • Businesses selling bottled or packaged alcoholic beverages for takeaway must obtain a Retail Liquor License to ensure compliance with the registered business scope.
  • Alcoholic beverages with an alcohol content of less than 5.5% ABV are exempt from licensing requirements; however, the business must still complete the required registration procedures.
  • The current competent authority for receiving applications is the Commune-level People’s Committe.

Classifying Alcohol Business Models: On-Site Service vs. Retail Distribution

Restaurants must definitively categorize their alcohol sales model before designing menus, service counters, or operational dossiers. Misclassifying your model can result in unauthorized business operations, particularly if a restaurant simultaneously serves alcohol at tables and sells bottles for off-site consumption.

The legal boundary is determined by consumption intent: immediate on-site use or off-site usage. Because alcohol business is a conditional investment sector, the operating model must be accurately classified under Clause 2, Article 4 of Decree No. 105/2017/NĐ-CP, as amended by Decree No. 17/2020/NĐ-CP.

Operational Model Required Procedure Competent Authority Consequences of Non-Compliance
Table-side or counter service for immediate consumption Registration for On-site Alcohol Consumption Commune-level People’s Committee Procedure misclassification; delayed opening
Selling bottles, gift boxes for off-site use Liquor Retail License Commune-level People’s Committee Operating without a license
Business of alcohol < 5.5% ABV Registration of Activity (No license) Commune-level People’s Committee Misclassification as retail if uncontrolled

For F&B chains, the safest strategy is to strictly segregate the on-site service area from the off-site sales zone. This structural organization enables enterprises to establish accurate dossiers, ensure regulatory compliance, and mitigate risks during interdisciplinary inspections.

Registration Procedures for On-Site Alcohol Consumption Services

Registration for on-site alcohol consumption applies exclusively when a restaurant sells alcohol for immediate consumption at the business premises. This administrative procedure operates under a “compliance commitment” mechanism rather than a retail licensing regime.

Food and beverage establishments only need to complete this registration if their operational scope remains strictly limited to on-site service. This exemption is explicitly provided for under Clause 2, Article 4 of Decree No. 105/2017/NĐ-CP, as amended and supplemented by Decree No. 17/2020/NĐ-CP.

However, risks arise if a restaurant expands to include bottle sales while maintaining only an on-site registration. In such cases, the actual operational model has shifted to retail distribution, necessitating a distinct and more rigorous set of legal dossiers.

Requirements for Obtaining a Liquor Retail License for Off-Site Sales

A Liquor Retail License is mandatory when a restaurant sells alcohol by the bottle, case, or as part of a gift combo for consumption off the premises. This model is classified as goods distribution rather than standard table-side service.

Enterprises must secure a Liquor Retail License before operating any off-site sales counter. This requirement originates from the conditional classification of alcohol business activities under Clause 2, Article 4 of Decree No. 105/2017/NĐ-CP, as amended and supplemented by Decree No. 17/2020/NĐ-CP.

For internal management, restaurant chains should clearly document the scope of off-site sales within their facility records. Failure to do so may lead to assessments that the business is conducting operations outside of its standardized scope.

Regulatory Exemptions for Low-Alcohol Beverages (Under 5.5% ABV)

Restaurants focusing exclusively on low-alcohol beverages can significantly reduce their administrative burden. The critical regulatory threshold is set at 5.5% ABV, applicable to all low-alcohol drink categories.

Establishments trading only in alcohol below this threshold are exempt from obtaining a formal liquor business license. However, they remain subject to registration procedures to ensure operational visibility. This exemption is grounded in Clause 2, Article 4 of Decree No. 105/2017/NĐ-CP, as amended and supplemented by Decree No. 17/2020/NĐ-CP.

For F&B enterprises, tailoring your menu according to alcohol concentration levels is a proactive compliance strategy. While this approach optimizes your opening timeline, you must continue to maintain robust documentation verifying the legal origin of all products.

Essential Compliance Standards and Prerequisites for Legally Operating Alcohol Businesses

Restaurants intending to sell alcohol must prove three fundamental foundations: a valid business entity, a fixed location, and a legal source of alcohol. These are prerequisite conditions that must be fulfilled before submitting registration dossiers or license applications.

For F&B chains, systemic risk often arises not from a single missing document, but from a failure to synchronize site records, supplier contracts, purchase invoices, and safety certificates.

  • Legal Entity Status: The establishment must be a legally registered enterprise, cooperative, cooperative union, or household business.
  • Fixed Business Location: The restaurant must possess the legal right to use a fixed business location with a clearly defined address.
  • Legitimate Alcohol Sourcing: All alcohol served must be supplied by traders holding valid production, distribution, wholesale, or retail licenses.
  • Operational Safety: Establishments must maintain compliance with fire prevention, firefighting, and environmental protection regulations throughout their operations.

Enterprises should view these conditions as a matrix for operational control rather than mere procedural documentation. A single point of sale lacking valid origin certificates or safety conditions can jeopardize the reputation and operation of the entire chain.

Requires legal legitimacy and the right to exploit a fixed location.

Food service establishments must have clear legal status before registering to sell alcoholic beverages for on-site consumption. Suitable forms include enterprises, cooperatives, cooperative unions, or household businesses. This condition helps the management agency identify the entity responsible for goods, invoices, and compliance obligations. The requirement regarding the entity is stipulated in Clause 1, Article 14 of Decree No. 105/2017/ND-CP.

The business location must also be fixed and have a clear address. If the leased premises are not stable, a contract lacking the right to operate a liquor business will increase the risk of being required to provide explanations, according to Clause 2, Article 14 of Decree No. 105/2017/ND-CP.

Supply chain control process and proof of legal origin for alcoholic beverages.

The origin of alcohol is the highest-risk inspection point in restaurant operations. Businesses need to control suppliers from contracts, licenses, invoices to delivery documents for each batch. Alcohol sold in restaurants must be supplied by traders holding a license for production, distribution, wholesale, or retail. This is a mandatory requirement under Clause 3, Article 14 of Decree No. 105/2017/ND-CP.

In cases where homemade liquor is used for blending, the establishment may purchase it directly from households or individuals producing homemade liquor for reprocessing. This exception requires strict control of input documents, as stipulated in Clause 5, Article 16 of Decree No. 105/2017/ND-CP, amended and supplemented by Decree No. 17/2020/ND-CP.

The obligation to maintain food hygiene and safety conditions, fire prevention and control, and environmental protection.

Restaurants not only need to register for the proper procedures to sell alcohol. The establishment must also maintain safe operating conditions throughout the entire process of serving customers at the business location.

Regarding the legal aspects of the alcohol business, the requirements for maintaining fire safety and environmental protection are stipulated in Clause 3, Article 4 of Decree No. 105/2017/ND-CP, as amended and supplemented by Decree No. 17/2020/ND-CP. For the F&B model, food safety documentation also needs to be standardized according to the actual management requirements at the local level.

If any of the satellite requirements are missing, the liquor business record may become insecure during inter-agency inspections. Businesses should keep both soft and hard copies at each location for timely presentation.

Mandatory requirements for restaurants to legally sell alcoholic beverages.
Investors need to be transparent about the origin of products and ensure that facilities meet standards for food safety and hygiene as well as fire safety.

Procedure for setting up an application for a retail liquor license for restaurants and registering on-site

Restaurants need to separate their applications into two streams from the outset: registration for on-site alcohol consumption and application for a retail alcohol license when offering takeout. This separation helps the legal department avoid submitting incorrect forms, applications outside the scope, and applications to the wrong receiving agency.

For on-site alcohol sales, the core documentation consists of registration and liability commitments. Key components include the On-site Alcohol Sales Registration Certificate Form No. 13 and a copy of the business registration certificate, based on Form No. 13 Section II of the Appendix to Decree No. 17/2020/ND-CP.

Checklist of standardized application documents according to the latest prescribed form

Documentation should not be prepared solely for submission. For restaurants and F&B chains, the documentation must be sufficient to demonstrate legality during inter-agency inspections at the business location.

  • Application form for selling alcoholic beverages for on-site consumption: Use correctly Form No. 13, clearly stating the establishment information, location, and commitment to compliance, according to Form No. 13, Section II, Appendix to Decree No. 17/2020/ND-CP.
  • Business registration certificate or household business registration certificate: This document identifies the legally responsible party, as recorded in Form No. 13 Section II of the Appendix to Decree No. 17/2020/ND-CP.
  • Business location profile: Businesses should standardize lease agreements, property use rights documents, and address information to prove a fixed location.
  • Documentation proving the legal origin of the alcohol: Sales contracts, invoices, delivery notes, and supplier licenses should be kept separately for each product group.
  • Operating condition records: Documentation regarding food safety, fire safety, and environmental protection should be kept as part of the records at each point of sale.

This checklist helps businesses not only complete registration procedures. Its greater value lies in creating a defensive profile in case of surprise inspections by market regulators, health authorities, or economic police agencies.

The 5-step process for submitting and archiving documents for inter-agency inspections

The documentation process needs to be standardized as an internal legal operating procedure (SOP). For restaurant chains, each location should have its own set of records, with consistent storage methods and assigned responsibilities.

  1. Review of business lines: Before registering to sell alcohol, check the business registration certificate or household business registration certificate to ensure the establishment has the appropriate scope of business.
  2. Prepare site documents: Gather lease agreements, property documents, and address information to prove a fixed and clearly defined business location.
  3. Establish a supply profile: Keep records of supplier contracts, financial invoices, delivery documents, and licenses of the liquor suppliers.
  4. Submit your application to the competent authority: For registration to sell alcoholic beverages for on-site consumption, establishments submit applications through the current application receiving process at the local level.
  5. Receive confirmation and have your records filed at the point of sale: Once completed, the restaurant needs to keep both a hard copy and a digital copy to present during inter-agency inspections.

This process helps businesses reduce documentation errors and control operational risks after opening. A properly maintained set of documents is generally a more effective safeguard than simply submitting them to complete the initial paperwork.

Shift in Administrative Authority to Commune-Level People’s Committees

F&B enterprises must update their dossier submission routing to avoid wasting time on outdated processes. Administrative authority has officially shifted from district-level specialized agencies to the Commune-level People’s Committee where the establishment is located. This transition directly impacts plans for grand openings, branch expansions, and amendments to existing alcohol business records. Enterprises must verify the correct receiving agency during the initial preparation stage, in accordance with Articles 7 and 15, and Clause 3, Article 22 of Decree No. 139/2025/NĐ-CP.

  • For new Liquor Retail License applications, the statutory processing time is 10 working days upon receipt of a valid and complete dossier.
  • If the dossier is incomplete, the receiving authority must respond with a request for supplementation within 03 working days.
  • Maintaining these timelines allows enterprises to control opening schedules and proactively address document deficiencies.

This shift requires businesses to maintain precise communication logs and receipt tracking to ensure compliance during interdisciplinary inspections.

Rules for preserving the legal validity of documents issued before the transition period.

Businesses that were granted licenses or confirmation documents before the transition period do not need to renew them immediately. Documents issued before this date.01/7/2025This provision remains valid until the expiration date stated in the document. This reservation rule helps the restaurant chain avoid operational disruptions due to changes in the administrative structure. The reservation mechanism is stipulated in Clause 4, Article 22 of Decree No. 139/2025/ND-CP and Clause 9, Article 61 of Decree No. 146/2025/ND-CP.

When a license expires, needs renewal, or requires modification, the business must submit the application through the new jurisdiction. A safe approach is to create a license expiration tracking table for each business location.

Procedures for handling applications currently awaiting review at the district-level agency.

Files submitted during the transition period should not be withdrawn without a formal request. The agency currently handling the case is responsible for continuing or transferring the processing to the new jurisdiction.

Tasks currently being handled by specialized agencies at the district level will be transferred to People’s Committee at the commune level. This is linked to the enterprise’s geographical location, as stipulated in Clause 3, Article 22 of Decree No. 139/2025/ND-CP. Files received before the transfer date will continue to be processed according to the provisions of Clause 7, Article 61 of Decree No. 146/2025/ND-CP.

For businesses preparing to open, it’s essential to keep records of application receipts, appointment slips, and correspondence with the receiving agency. This serves as proof of legal progress in case of inspections or changes to the opening date.

Commercial Risks and Administrative Sanctions for Non-Compliant Alcohol Sales

Restaurants failing to maintain source documentation, operating outside their registered scope, or neglecting operational conditions face significant risks of business disruption. For F&B chains, a single point of sale violation may trigger an extensive interdisciplinary audit across the entire system.

The most severe penalty in this sector is the revocation of the business license, which may occur if an establishment falsifies records, fails to maintain required operational conditions, terminates operations, or violates prohibited acts. The following risks must be managed to ensure long-term stability:

  • Absence of Alcohol Origin Documentation: Establishments must prove the legality of all inventory, which must be sourced from entities holding valid production, distribution, wholesale, or retail licenses.
  • Operating Outside Registered Scope: Restaurants registered only for on-site consumption that engage in off-site bottle sales risk being penalized for unauthorized operational activities.
  • Failure to Maintain Safety Conditions: A lack of valid fire prevention, environmental protection, or food safety documentation weakens your legal defense during inspections.
  • Unauthorized Suspension: Failing to monitor and manage license status during periods of inactivity lasting 12 consecutive months can lead to automatic license revocation.

Enterprises should establish a periodic review schedule for each location, covering licenses, registrations, supplier contracts, and invoicing records. This acts as a necessary legal defense layer against unannounced interdisciplinary inspections.

Commercial risks and administrative penalties when liquor outlets violate regulations.
Failure to maintain proper documentation of origin or violations of due diligence regulations may result in suspension of operations and hefty fines.

Comprehensive Legal Advisory and F&B Compliance Services at Long Phan Consulting

Navigating the complexities of alcohol business regulations requires more than just filing forms; it demands a proactive strategy to synchronize your location records, supply chain documentation, and operational safety standards. At Long Phan Consulting, we provide end-to-end legal support, ensuring that your restaurant or F&B chain remains fully compliant from the initial planning stages through to daily operations. We mitigate legal risks by aligning your business model with current statutory requirements, allowing you to focus on your commercial expansion.

Our professional services for F&B enterprises include:

  • Alcohol Business Model Audits: We help classify your operations—distinguishing between on-site service, take-away distribution, and low-alcohol beverage trading—to ensure you pursue the correct regulatory procedures.
  • Due Diligence on Suppliers: We conduct thorough reviews of your alcohol suppliers’ licenses, purchase contracts, and invoices to verify the legal origin of every product.
  • Dossier Standardization: Our team drafts and standardizes all registration forms and licensing dossiers to ensure they are fully prepared for interdisciplinary inspections.
  • Representation before Competent Authorities: We act as your liaison with the Commune-level People’s Committee to manage dossier submission, address requests for supplementation, and track the progress of your applications.
  • Comprehensive Compliance Synchronization: We integrate food safety, fire prevention, and environmental protection records into a unified compliance management system for your entire restaurant chain.

You may send your existing dossiers, facility descriptions, or operational plans via Email: info@longphanpmt.com or Zalo/WhatsApp: +84 906 735 386 for a preliminary evaluation of your compliance risks by our legal experts at Long Phan Consulting.

Frequently Asked Questions about the Procedure for Setting Up an Application for a Retail Alcohol License for Restaurants

Properly defining the business model helps businesses avoid legal risks and optimize the time spent on administrative procedures. Understanding the regulations regarding registration, rather than a “retail liquor license,” for on-site operations is key to legally operating a restaurant. Businesses need to stay updated on changes in the authority to receive applications at the commune-level People’s Committee to ensure compliance in the F&B industry.

1. Do restaurants that sell alcoholic beverages for on-site consumption need a license, or is registration sufficient?

Restaurants that sell alcoholic beverages for on-site consumption do not need to apply for a license; they only need to register their operations with the state management agency. This regulation applies similarly to businesses selling alcoholic beverages with an alcohol content below 5.5%. These establishments are exempt from the procedure for applying for an alcohol business license as stipulated in Clause 2, Article 4 of Decree No. 105/2017/ND-CP (amended and supplemented by Decree No. 17/2020/ND-CP).

2. Which agency currently has the authority to receive applications for registration to sell alcoholic beverages for on-site consumption?

Food service businesses must submit their registration applications directly to the People’s Committee of the commune where the restaurant is located. According to the latest regulations on administrative jurisdiction, this agency is the sole point of contact for receiving and processing all applications related to alcohol business activities in the area, as stipulated in Article 7 and Clause 3 of Article 22 of Decree No. 139/2025/ND-CP.

3. What mandatory conditions must a food and beverage business meet to register to sell alcoholic beverages for on-site consumption?

The business establishment must have legal personality or be a legally registered household business and own a fixed business location with a clear address. All alcoholic beverages served to customers on-site must be legally sourced from traders with licenses for production, distribution, wholesale, or retail. Furthermore, the restaurant must commit to fully complying with fire safety and environmental protection standards as stipulated in Clauses 1, 2, and 3 of Article 14 of Decree No. 105/2017/ND-CP.

4. Under what circumstances can a restaurant have its liquor license revoked?

Restaurants will have their licenses revoked if they falsify documents, fail to maintain sufficient business conditions, or cease operations. Additionally, a period of 12 months without continuous business activity is also grounds for license revocation. Significant violations related to prohibitions on alcohol sales will also lead to this penalty, as stipulated in Point d, Clause 1, Article 33 of Decree No. 105/2017/ND-CP.

Conclusion

Securing a valid liquor retail license and maintaining strict adherence to Decree No. 139/2025/NĐ-CP is a non-negotiable operational prerequisite for foreign investors operating in Vietnam’s competitive F&B market. Beyond securing administrative permits, success requires a robust, systemic approach to managing alcohol origin, site safety, and regulatory documentation to mitigate risks of sudden business suspension during interdisciplinary inspections. As enforcement by the Commune-level People’s Committee intensifies, proactive legal alignment is your most effective safeguard for long-term commercial sustainability. Ensure your organization’s compliance profile is audit-ready by consulting the legal experts at Long Phan Consulting. For immediate professional guidance, contact our team via the legal hotline at 1900636389 to protect your operational assets and investment integrity.

📚 This article has been professionally reviewed based on the following legal documents:

  • 2019 Law on Prevention and Control of Harmful Effects of Alcoholic Beverages
  • Decree No. 105/2017/ND-CP on alcohol business
  • Decree No. 17/2020/ND-CP amending and supplementing certain articles of Decrees related to business investment conditions under the state management of the Ministry of Industry and Trade
  • Decree No. 139/2025/ND-CP on the allocation of authority between two-tier local governments in the field of state management under the Ministry of Industry and Trade
  • Note: Laws and regulations may change over time. Please contact Long Phan Consulting directly via Hotline 1900.63.63.89 for the latest updates.
Table of Contents
CONTACT FORM
Call for consultation now!

Leave a Reply

Your email address will not be published. Required fields are marked *