In short: The UK has no single general business licence. Most businesses can start trading once registered, but some activities need a licence, permit or registration – for example selling alcohol, running a taxi, preparing food, gambling, boarding animals or regulated financial services. Most are issued by your local council; some come from national regulators.
Is there a general business licence?
No. Registering a limited company with Companies House, or registering as self-employed with HMRC, lets you exist as a business. It does not give you permission to carry out every activity. Instead, specific activities need their own licences or registrations.
Being registered with Companies House is not a licence, and a licence does not replace company registration. You may need both.
Activities that commonly need a licence
Local councils licence many activities, including:
- selling alcohol (a premises licence and a personal licence)
- public entertainment
- taxis and private hire vehicles and drivers
- gambling premises and some lotteries
- boarding animals and riding establishments
- street trading and markets
- public charitable collections
- some types of housing, such as houses in multiple occupation (HMOs) and, in Scotland, short-term lets
Food businesses must register with their local council before they start trading.
Licences from national bodies
Some licences come from national regulators instead of councils, for example:
- Financial services: most need authorisation from the Financial Conduct Authority (FCA).
- Consumer credit, such as lending or credit broking: also FCA.
- Waste carriers: registration with the relevant environment agency – SEPA in Scotland.
- Security staff: licences from the Security Industry Authority (SIA).
- Gambling operators: the Gambling Commission.
- Sponsoring overseas workers: a sponsor licence from the Home Office.
- Importing or exporting certain controlled goods.
Other registrations to think about
Even if you do not need a licence, you may need to register for:
- Corporation Tax – within 3 months of starting to trade, for a limited company
- VAT – if your VAT taxable turnover goes over £90,000
- PAYE – before your first payday, if you employ staff
- The ICO data protection fee – if you process personal data, unless exempt
- Anti-money laundering supervision – for some sectors, such as accountancy and estate agency
Scotland, England, Wales and Northern Ireland
Licensing rules are not the same across the UK. Scotland has its own licensing laws for many activities, such as alcohol and civic licences, and its own rules for short-term lets. Always check with the council for the area where you will trade. In Scotland, the mygov.scot website lists licensing contacts for every council.
How to find out what you need
- Describe exactly what you will do. For example, "selling hot food from a van at weekend markets", not just "food business".
- Check GOV.UK and your council's website for the licences that apply.
- Contact your council's licensing team. They can tell you what you need, how long it takes and the fee.
- Check national regulators for regulated sectors.
- Allow enough time. Some licences take weeks or months and may involve public notices or inspections.
- Diarise renewals. Many licences must be renewed, and conditions must be followed.
Licences and limited companies
If you trade through a limited company, think about who should hold the licence. Some licences are issued to the company, some to the premises and some to an individual, such as a personal alcohol licence or a taxi driver's licence. Councils may also ask for details of directors and check whether they are "fit and proper". Have your certificate of incorporation and company number ready when you apply.
What happens if you trade without a licence?
Trading without a required licence can lead to fines, closure and, in some cases, prosecution. It may also invalidate your insurance. If in doubt, ask before you start.
Common mistakes
- Assuming company registration is a licence to trade.
- Signing a lease before checking the premises can be licensed.
- Forgetting that licences are often tied to specific premises or people.
- Missing renewal dates.
How Form My Company can help
We form your company so you can apply for licences in its name, and most companies are registered within 24 hours. Licensing bodies and banks often ask for official company documents, and our Certified Package (£450) includes printed, bound documents posted to you. Need a Certificate of Good Standing for an application? We provide one for £110.
Frequently asked questions
Do I need a licence to start a business in the UK?
Not a general one. Many businesses can start after registering, but some activities, such as selling alcohol, running a taxi or gambling, need a specific licence.
Who issues business licences in the UK?
Mostly local councils. Some sectors, such as financial services, security and gambling operators, are licensed by national regulators.
Does a food business need a licence?
A food business must register with its local council before it starts trading. Other licences may also apply, for example if you sell alcohol.
Are licensing rules different in Scotland?
Yes. Scotland has its own laws for many licences, including alcohol, civic licences and short-term lets. Check with your local council.