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What licenses do I need to start a business in the UK?

  • May 8
  • 4 min read

Starting a business in the UK is exciting—but one of the most common questions we hear at DUO Accountants is: “Do I need a licence to start my business?”


The honest answer is: it depends on what your business does.


Some businesses need licences before they can legally operate, while others don’t need any at all. In this guide, we’ll break it down in simple terms so you know exactly what to check.



Understanding Business Licences in the UK


In the UK, licences are permissions granted by government bodies or local authorities that allow you to carry out specific activities. Not all businesses need licences, but many do depending on the sector and services offered. Licences ensure your business complies with safety, health, environmental, and legal standards.


For example, a café will need different licences than a construction company or an online retailer. Knowing which licences apply to your business saves time and money and helps you avoid penalties.


Common Licences for UK Small Businesses


Here are some of the most common licences that UK small businesses may require:


1. Premises Licence


If your business sells alcohol, provides entertainment, or serves hot food and drink between 11 pm and 5 am, you need a premises licence. This licence is issued by your local council and ensures your premises meet safety and noise regulations.


  • Applies to pubs, restaurants, nightclubs, and late-night takeaways.

  • Requires a detailed application including a plan of the premises.

  • You may need to consult with local police and fire authorities.


2. Personal Licence


To sell or authorise the sale of alcohol, at least one person in your business must hold a personal licence. This licence requires completing a training course and a criminal record check.


3. Food Business Registration


If you plan to sell food, you must register your food business with your local authority at least 28 days before opening. This is free but mandatory.


  • Applies to restaurants, food stalls, catering services, and online food sales.

  • The local authority will inspect your premises to ensure hygiene standards.


4. Health and Safety Licences


Certain industries require specific health and safety licences or certifications. For example:


  • Construction businesses need to comply with the Construction (Design and Management) Regulations.

  • Businesses using hazardous substances may need COSHH (Control of Substances Hazardous to Health) compliance.

  • If you employ staff, you must follow workplace health and safety laws.


5. Street Trading Licence


If you want to sell goods or food on the street, at markets, or fairs, you need a street trading licence from the local council. This licence controls where and when you can trade.


6. Music Licence


Playing recorded music in your business, such as in a shop or café, requires a music licence from PPL PRS Ltd. This covers copyright fees for music usage.


7. Vehicle and Transport Licences


If your business involves transporting goods or passengers, you may need specific licences:


  • Operator’s licence for commercial vehicles.

  • Taxi or private hire vehicle licence.

  • Goods vehicle operator licence.


Do I Need a Licence If I Work From Home?

Sometimes, yes.


Even home-based businesses may need:

  • Local council permission

  • Planning permission (in some cases)

  • Specific licences depending on activity


For example:

  • Running a beauty salon from home

  • Cooking and selling food

  • Childcare services


Steps to Get Your Business Licences


Here is a simple process to follow when applying for licences:


  1. Research your business type

    Identify which licences apply to your sector and location.


  2. Contact your local council

    Councils provide guidance and application forms for many licences.


  3. Prepare documentation

    This may include business plans, safety certificates, and premises layouts.


  4. Submit applications early

    Some licences take weeks or months to process.


  5. Comply with inspections

    Authorities may visit your premises before granting licences.


  6. Keep licences up to date

    Renew licences on time to avoid penalties.


Examples of Licence Requirements by Business Type


  • Café or restaurant

Needs food business registration, premises licence (if selling alcohol or late-night food), personal licence, and possibly a music licence.


  • Construction company

Requires health and safety compliance, waste disposal licences, and possibly environmental permits.


  • Market stall trader

Needs street trading licence and food hygiene certificates if selling food.


  • Online retailer

Usually fewer licences but must comply with consumer protection laws and data protection regulations.


How Do I Find Out What Licence I Need?


The easiest way is to use the official Licence Finder tool on GOV.UK. It allows you to search based on your business activity and your location. There are hundreds of possible licences, so it’s best to check specifically for your situation.


Final Thoughts on UK Business Licences


Starting a UK small business means understanding and securing the right licences to operate legally. Licences protect your customers, employees, and your business reputation.


Taking care of licences early helps you avoid fines and focus on building a successful business. At DUO Accountants, we always say it’s better to check before you start than fix problems later. If you’re unsure what applies to your business, don’t worry, you’re not expected to know everything from day one. We’re here to help make things simple, clear, and stress-free.


 
 
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