Business licences in the UK: what licence might your business need?

Some UK businesses need a licence, permit, registration, or authorisation before they can legally trade. Whether you need one depends on what your business does, where it operates, and which regulator or local authority oversees that activity.

As a first step, check the GOV.UK licence finder and your local council’s licensing team before you start trading. Common regulated activities include selling alcohol, preparing or selling food, street trading, taxi or private hire services, boarding cats or dogs, providing childcare, carrying waste, and playing music in public.

You may not need a general “business licence” simply to start a business in the UK, but you may need approval for specific activities. Trading without the right licence or registration can lead to fines, prosecution, closure, or, in serious cases, imprisonment.

Read our guide on reasons to start your own business.

Quick answer: do I need a business licence?

• Use the GOV.UK licence finder to search by activity and location.
• Contact the local council for each area where you plan to operate.
• Check sector-specific regulators such as Ofsted, the Environment Agency, or PPL PRS where relevant.
• Apply before trading, allow time for inspections or approvals, and keep renewal dates in your diary.

What is a business licence in the UK?

A business licence is official permission from a local authority, government department, regulator, or approved body to carry out a regulated business activity in a specific place or sector.

Licences and registrations help protect customers, employees, local communities, public health, safety, safeguarding, and the environment.

Obtaining the licence proves that the business or entrepreneur undertaking the activity has considered the protection of public health and safety.

A business licence ensures you comply with regulations and maintain industry standards.

How to check if your business needs a licence

Start by listing every activity your business will carry out, where it will take place, and whether customers, employees, children, animals, food, alcohol, waste, transport, entertainment, or public spaces are involved.

For example, it’s a very different licence for those working in the catering industry from a licence you would need for running a childminding business that would need to be acquired from the affiliated body, Ofsted.

Many businesses in the UK will not require a business licence, but it’s a good idea to check with your local authority early on to be sure whether your business requires a licence.

If you operate across more than one local authority area, check the rules in each area before you trade, as licensing conditions, fees, and application processes can vary.

You can visit the government website and use their licence finder to determine whether your business requires a licence.

Common UK business licences and registrations

The licences or registrations you need depend on your activity. These are common examples for UK businesses:

1. Serving alcohol

If your business sells or supplies alcohol in England or Wales, you will usually need a premises licence for the location and a personal licence for the person who sells, supplies, or authorises alcohol sales.

Your premises in which you plan to carry out the ‘licensable activity’ as stated in the Licensing Act 2003 will need a licence, and you or a member of your staff must hold a personal licence to sell the alcohol.

For your premises to become ‘licenced’, they will undergo fire, health, and safety checks.

To serve alcohol, you will need to undergo training to become a ‘licensee’.

The penalty for serving alcohol without correct licences could be up to £20,000 fine and/or six-month imprisonment.

Find out more about alcohol licencing on the government website.

Read our guide on how to start an off-licence.

2. Food business registration

If you sell, cook, store, handle, prepare, or distribute food, you must register as a food business with your local authority. This applies whether you trade from premises, home, a mobile unit, a temporary stall, online, or through distance selling.

• sells or cooks food
• handles or stores food
• distributes or prepares food.

Register your food business at least 28 days before food operations start, using the relevant local authority service.

Operating with food without registering could result in a fine or up to two years imprisonment.

3. Street trading

If you sell goods or services in a street, market, beach, or other public area, contact the local council where you want to trade. You may need a street trading licence, and rules can differ by location.

A street trading licence will allow you to sell certain goods in public areas that are free to access, such as streets and beaches.

You can apply for either a temporary or a permanent licence.

It’s worth contacting the local authority of the area you are looking to trade in to find out what is required.

Trading in public areas without the appropriate licence could result in a fine of up to £1,000.

Find out more about street trading licences on the government website.

4. Taxi and private hire vehicle

You will need the correct licence to drive a taxi or private hire vehicle.

Licences to drive a taxi differ from those needed to operate a private hire vehicle.

Driving a taxi or private hire vehicle without a licence could result in a fine.

Find out more about taxi and private hire vehicle licences through the government website.

5. Cat and dog boarding

If your business is boarding cats and dogs in your home, or kennels or cattery, you’ll need a licence, even for a small number of animals.

Your property will be inspected by your local council to meet the requirements of the licence.

You could be fined or imprisoned for up to six months for boarding cats and dogs without the appropriate licence.

Find out more about licences for boarding cats and dogs at the government website.

Read more about starting a dog walking business.

6. Childminding

To look after someone else’s children in either your home or someone else’s home, you will need to have a licence from the affiliated body, Ofsted, or a childminder agency from the government’s approved list.

Your premises for childminding will be inspected to ensure you meet the criteria for each child’s safeguarding and welfare as well as their learning and development.

You can contact your local authority to find out about applying for childcare licences, and you could face criminal charges if you provide unregistered childcare.

Find out more about becoming a childminder in our helpful guide.

7. Waste carrier

If your business involves carrying, buying, selling, or disposing of waste or arranging for someone else to buy, sell, or dispose of waste, you will need a licence.

You risk an unlimited fine if you carry waste without a licence.

To register for a waste carrier licence, visit the government website.

8. Performing rights

If you’re starting a business that involves playing recorded or live music or uses sound recordings in a public place, you will need to obtain ‘TheMusicLicence’ from the PPL PRS.

If you are using music (even in the form of playing the radio) in a business or organisation that has employees, customers, or visitors then you usually need a music licence.

You could be fined for playing music in a public area without the correct licence.

Contact PPL PRS to find out what type of licence you’ll need for your intended event.

Business licence costs, fees, and renewals

Business licence costs vary by activity, regulator, location, licence type, and licence length. Some registrations are free, while other licences require application, variation, inspection, or renewal fees.

Factors affecting the cost of a licence can be the sector your business operates in, the length of time you wish to have the licence for, and the local authority you are seeking the licence from.

How to apply for a business licence

To obtain a business licence, follow these steps:

• identify the relevant licence and regulatory body
• complete the application form and submit any required documentation
• pay the application fee
• pass any necessary inspections or assessments
• await approval or rejection of the application.

Maintaining and renewing business licences

Most licences apply for a set period or come with conditions. If your business needs ongoing permission to trade, renew before the expiry date and keep evidence of your licence, registration, inspections, and any required public display notices.

It’s also advisable to be aware of any conditions you are required to comply with in the terms of the licence, such as displaying your licence on your premises or website.

If you want to learn more about licensing it’s a good idea to seek independent specialist advice.