Step-by-step plan: Starting a shisha lounge

You can only start a shisha lounge in a location where hospitality businesses are allowed. You can check this in the environment plan of your municipality.

Please note: Just because hospitality businesses are permitted does not automatically mean that you are allowed to run a shisha lounge. The municipality decides whether this is appropriate for the area. A shisha lounge is not included in the environment plan. So, always contact your municipality before you start.

There is a lot to consider when starting or taking over a company. In a business plan, you describe what your plans are and how you will make a profit.

Read what steps you need to take before you start.

Choose a business name and a legal structure, and register with the Netherlands Chamber of Commerce KVK.

You need an operating permit for a hospitality establishment (exploitatievergunning horecabedrijf) if you start a shisha lounge – just like a hotel, cafe, or restaurant. Apply for the operating permit from the municipality where you want to start the shisha lounge.

Do you already have a restaurant or cafe, and do you also want to offer shishas? Contact the municipality. They will tell you if you must apply for a new operating permit or have the current permit changed.

Getting an operating permit: your municipality decides

Each municipality has a different way of deciding if you will receive a hospitality operating permit.

Your municipality decides:

• How many permits are possible for shisha lounges within a (sub-)municipality.
• How the licence is issued (for example, in order of application, or by public lottery).
• What the permit looks like, for example with a mention of 'shisha' on the operating permit. Or adding 'shisha' as a permitted business activity for your catering business.

When smoking a water pipe, harmful substances are released, such as tar and carbon monoxide (CO). High carbon monoxide levels are dangerous for your employees and your guests. So, you must have a good ventilation system. Have this system installed by a professional company. Also install a CO meter. The CO meter alarm warns if there is too much carbon monoxide in the air.

Avoid fines and the loss of your permit

Supervisors monitor how much carbon monoxide is released in your shisha lounge. If it is too much and you do not take the right measures, you could be fined and/or lose your permit. You must then close your shisha lounge.

Find out how you can prevent carbon monoxide poisoning (in Dutch) in your shisha lounge.

Do you want to have a terrace (an outside seating area) at your shisha lounge? Then you usually need a terrace permit (terrasvergunning). You can apply for a terrace permit from the municipality. Your guests are allowed to smoke shisha with tobacco outdoors on the terrace. The terrace must be fully open on at least 1 side.

You must prevent noise pollution. There are various ways in which you can do this. These include, for example, insulating walls, fitting soundproof glass, and turning the music down. Your municipality may also ask you to provide a noise assessment report.

Do you expect to make more noise than usual? For example, with live music? The municipality can set specific rules for noise. Such as different noise standards during specific festivities. Contact your municipality to make arrangements.

You must follow the closing times for the hospitality sector in your municipality. You will sometimes find the rules on opening hours set out in the environment plan. The general municipal bylaw of your municipality may also contain rules about opening times. Do you want to be open longer? In that case, you must apply to the municipality for dispensation from closing times.

As owner of a shisha lounge, you pay municipal taxes and levies. For example, waste collection and sewerage charges. You also pay Regional Water Authority Tax.

As the owner of the shisha lounge, you are responsible for fire safety and prevention. A water pipe can cause a fire in your business. The coals used can burn for a long time.

Will you serve alcohol in your shisha lounge? Then you need an alcohol licence. Read which requirements you must meet.