In short: Many businesses need no special licence, but some activities do – for example selling food or alcohol, playing music in public, financial services, waste, childcare and street trading. Use the free 'Find a licence' tool on GOV.UK, check with your local council, and get licences in place before you start trading.
Forming a limited company does not give you permission to carry out every type of business. Some activities are regulated, and you need a licence, permit, registration or certification before you start. The rules differ between England, Wales, Scotland and Northern Ireland, and some licences are issued by your local council.
Start with the GOV.UK licence finder
GOV.UK has a free tool called Find a licence. You can:
- search by keyword, such as "sell alcohol" or "street trading"
- filter by location: England, Wales, Scotland or Northern Ireland
- filter by type of business or activity, such as hospitality or healthcare
Each result explains what the licence covers and links to how to apply. GOV.UK notes that the list may not include every licence you need, so also check with your council and any trade body.
Common activities that need a licence or registration
Food. If you prepare, cook, store, sell or deliver food – including from home or a market stall – you must register as a food business with your local council. The Food Standards Agency says to register at least 28 days before you start trading. Some businesses handling meat, fish, eggs or dairy need approval instead.
Alcohol. Selling alcohol needs a premises licence for the place where it is sold, and someone with a personal licence to authorise sales. In Scotland these are issued by the local licensing board; in England and Wales by the council.
Music and entertainment. Playing recorded or live music in a shop, café, gym or office open to the public usually needs a music licence from the copyright bodies. Some live entertainment may also need council permission.
Financial services. Lending, consumer credit, insurance broking, investment advice and some payment services need authorisation from the Financial Conduct Authority (FCA).
Other examples:
- street trading and market stalls
- taxis and private hire vehicles
- childcare and childminding
- animal boarding, breeding and pet shops
- waste carrying and scrap metal dealing
- tattooing, piercing and some beauty treatments
- adventure activities
- security work, such as door supervisors
- driving instruction
Professional registrations
Some professions require individual registration rather than a business licence, such as solicitors, accountants offering certain services, healthcare professionals, gas engineers and estate agents. Check with the professional body for your sector.
Anti-money laundering supervision
Some businesses must register with an anti-money laundering supervisor – for example accountants, tax advisers, estate agents, trust or company service providers, and some high-value dealers. If you are unsure whether this applies to you, ask your trade body or an adviser.
Other permissions to check
Even if your activity needs no licence, you may need:
- planning permission to change how a building is used
- your landlord's or mortgage lender's consent to run a business from home or rented premises
- signage consent for some shop signs
- employers' liability insurance as soon as you employ someone
- data protection registration with the ICO if you handle personal data – many businesses must pay a data protection fee
Step by step
- List exactly what your business will do, where, and who it will serve.
- Search the GOV.UK Find a licence tool for each activity.
- Contact your local council's licensing or environmental health team.
- Check with any trade or professional body for your sector.
- Allow enough time – some licences need inspections or public notice periods.
- Keep copies of licences and renewal dates with your company records.
What happens if you trade without a licence?
Trading without a required licence can lead to fines, closure or prosecution, and it may invalidate your insurance. Treat licensing as part of your start-up plan, not an afterthought.
How Form My Company can help
We do not issue licences, but we set up the company that holds them. Form your company with our Digital Package – most companies are registered within 24 hours. Regulators often ask for proof of your company's details, and our Certificate of Good Standing and Certificate of Incumbency services give you exactly that.
Frequently asked questions
How do I find out if my business needs a licence?
Use the free Find a licence tool on GOV.UK, then check with your local council and any trade body for your sector.
Do I need a licence to sell food from home?
You must register as a food business with your local council. The Food Standards Agency advises registering at least 28 days before you start.
Does forming a limited company give me a licence to trade?
No. Incorporation creates the company. Regulated activities still need the right licence, permit or registration.
Who issues business licences in Scotland?
It depends on the activity. Many come from your local council or licensing board; others come from national regulators such as the FCA.