Licences and rules

Licences a Kerala homestay needs in 2026: the full list

By Homlystay, Kollam · Checked on the official websites on 29 October 2026 · 4 min read

Quick answer

A small homestay (up to 6 guest rooms) usually needs three things: a licence from the panchayat or municipality, Form III for every foreign guest, and FSSAI registration if guests pay for food you serve. Kerala Tourism classification is optional and brings a cheaper electricity tariff. GST registration starts above ₹20 lakh a year, pollution board consent above 6 rooms, and a fire NOC only for big buildings.

Six of these rules changed in 2025 and 2026, so many guides online are out of date. This list is on the current rules, read on the official websites on 29 October 2026.

The full list

What	Who needs it	Where	How long it lasts
Local body licence ("enterprise licence")	Every homestay run as a business	Your panchayat or municipality, on K-SMART	Panchayat: up to 5 years from the day it is issued
Form III (old Form C)	Every stay that hosts a foreigner or an OCI cardholder	indianfrro.gov.in or the Su-Swagatam app	Each guest, within 24 hours of arrival and of departure
FSSAI registration	If guests pay for food you serve	foscos.fssai.gov.in	No renewal since 1 April 2026; ₹100 fee a year
Health card	Everyone who handles food	Any registered doctor	Once every financial year
Kerala Tourism classification	Optional: your own house, you live there, 1 to 6 rooms	keralatourism.org	3 years; ₹3,750 fee
GST registration	Turnover above ₹20 lakh in a financial year	gst.gov.in	Until cancelled; returns every month or quarter
Pollution board consent	Homestays with more than 6 rooms	Kerala State Pollution Control Board, online	Up to 6 rooms: no consent needed
Fire NOC	Lodging buildings over 1,000 sq m or 15 m tall	Kerala Fire and Rescue Services	Now up to 5 years
Building tax	Every building	Your local body, on K-SMART	Paid in two half-years

1. Licence from the panchayat or municipality

This is the basic licence to run a business from the building. Since 14 August 2025 panchayats follow the Kerala Panchayat Raj (Licensing of Enterprises) Rules, 2025: a licence can run up to five years from the day it is issued. Apply and renew on K-SMART, and renew at least 30 days before it ends: later costs extra. Read the panchayat licence guide.

2. Form III for foreign guests

Form C was replaced on 1 September 2025 by Form III under the Immigration and Foreigners Act, 2025. Every foreign guest, and now OCI cardholders too, must be reported within 24 hours of arrival and again within 24 hours of departure. There is no room or turnover limit: a one-room homestay files too. Read the Form III guide.

3. FSSAI if you serve food

If guests pay for food you serve, you need FSSAI registration. From 1 April 2026 registration covers turnover up to ₹1.5 crore, the fee is ₹100 a year, and it no longer expires. Everyone who handles food needs a health card each financial year. Read the FSSAI guide.

4. Kerala Tourism classification (optional)

Kerala Tourism grades homestays as Diamond, Gold or Silver. Its guidelines do not say a homestay must be classified to operate. A classified homestay is billed at the domestic electricity tariff instead of the commercial one. Read the classification guide.

5. GST, only above ₹20 lakh

You must register for GST once your turnover passes ₹20 lakh in a financial year. Since 22 September 2025 a room up to ₹7,500 a night carries 5% GST, without input tax credit. Read the GST guide.

6. Pollution board, only above 6 rooms

On the Kerala State Pollution Control Board's list of 8 October 2026, a homestay with up to 6 rooms is in the White category, which needs no consent. More than 6 rooms is Green, which needs consent to establish and to operate. Read the pollution board guide.

7. Fire NOC, only for big buildings

Under the Kerala Panchayat Building Rules, 2019, lodging buildings over 1,000 sq m of built-up area or over 15 m tall need the approval of the Director of Fire and Rescue Services. Between 300 and 1,000 sq m, a self-declaration with an architect's or engineer's certificate is enough. Since August 2025 a fire NOC for hotels and lodges can be valid for five years.

Municipal building rules may set different limits: check with your municipality. Staff rules (EPF, ESI, the Shops and Establishments Act) are not covered here.

Keep the dates in one place

StayOffice by Homlystay lists every licence your stay needs with its renewal date, reads the expiry date from a photo of the licence, and runs the 24-hour countdown for Form III. It does not file anything for you: you or your staff still submit on the official portals.

Official sources

This is a plain guide, not legal or tax advice. Rules change: check with the office named here before you act.