Who needs a business licence in the UK – and how to get one

If you’re starting your own business, you’ve probably already sorted things like your business structure — and perhaps you’ve even gone through the company registration process. But before your business can officially take off, there’s one piece of admin that often gets forgotten about: checking if you need a business licence. 

There isn’t one ‘catch-all’ business licence in the UK — ultimately, whether or not you need one depends on what you do and where you do it. 

Don’t worry, we’re here to help you figure out if you need one and walk you through how to get a business licence — the paperwork is usually quite straightforward, we promise. 

Key takeaways

• Many businesses don’t need a specific licence, but some regulated industries do
• Licences are required for activities that involve safety, public health, or regulated services, like food or alcohol
• The cost of a business licence depends on your business activity and location
• You often apply for them through your local council or a specific national regulator

A business licence is official permission from a government body, like your local council or a specialist regulator, that allows your business to carry out certain activities.

The fundamental purpose of a business licence is to protect the general public by ensuring that businesses operate safely, fairly, and within the law. For example, a business licence ensures:

• Food businesses are safe, inspected and properly registered
• Taxi drivers are properly vetted
• Medical practices are properly regulated 

If you’re trading in a way that impacts the health and safety of the general public or involves regulated goods, like food and alcohol, a licence confirms you’re operating within the law. 

Not every business needs a business licence in the UK. Many small online businesses, for example, can operate without one. But other types of businesses may need more than one.

Whether or not you need a business licence depends on your industry, location and specific business activities. Some common business activities that require a licence are:

• Food business: Any business preparing, storing or selling food
• Alcohol sales: Any business selling alcohol, plus a personal licence for anyone selling it 
• Childcare: Any business with childcare services 
• Beauty and personal care: Any business that offers services like tattooing, piercing or certain types of massage 
• Waste carriers: Businesses that transport or dispose of waste 

For further context, here are some common types of business activities, the licences they would need, and the issuing authority: 

Tip: The easiest way to run a business licence check is to use the Government’s licence finder tool. This great resource lets you search by keyword, location and your business type. It’ll then give you a list of permits and licences you might need to consider applying for

Generally, if you’re selling goods online from your home and you’re not in a regulated industry (like food or pharmaceuticals), you don’t need a specific business licence. However, you’ll still need to comply with consumer protection laws, distance selling regulations and data protection rules. 

But, if you do sell goods or services from a regulated industry, you will need a specific business licence, even if you only operate online. For example:

• Selling alcohol online: You’ll need a premises licence and a personal licence
• Selling homemade food: If customers can order your food online, you’ll need premises approval from your council

Remember, whether or not you need a business licence is determined by the products or services you sell, not where you’re selling.

If you’ve done your business licence check and realised you do need one — don’t panic! Here’s our step-by-step guide on how to get a business licence in the UK:

First things first, confirm what licence you think your business needs. As we mentioned a little earlier, the Government’s business licence finder tool is a very helpful place to start, and you can search by keyword, location and business type.

Most business licences in the UK are issued by your local council. The Government business licence tool will usually tell you which council you’ll need to apply to. 

For example, if you want to apply for a street trading licence, you’ll apply to the local council in the area where you plan to trade. 

However, some licences might be issued by specific government bodies, like the Food Standards Agency, for certain food-related activities. The licence finder tool will point you in the right direction for these, too.

Every business licence has its own specific requirements, so make sure you read them carefully. You’ll likely need to provide information about:

• Your company name (if you’ve not formed a limited company yet, but want to, you could use our free company name availability checker to see if your preferred company name is available)
• Proof of address (your personal and business address may be needed)
• Personal details of directors or other key company people
• Company registration details 
• Insurance documents (you may need to show specific insurance coverage, like public liability insurance, to be eligible for certain licences)

Tip: For food and alcohol licences, you will often need to show evidence of relevant training or qualifications

Complete your business licence form carefully, making sure all your details are accurate. 

When you’re ready, submit your completed form to the relevant authority — it’s a good idea to keep copies just in case you need to refer to the application at a later date. 

There might be a fee, which can vary depending on the type of licence and local authority (more on this below). 

Tip: Some business licences, like the premises licence, may require a physical inspection before they are granted. This might be unannounced, so be prepared!

Business licence fees depend on the type of licence you need and where you’re based. 

Some licences have straightforward fees, but others are a bit more complex. Generally, the costs can be split into two:

• The application fee
• The licence fee

Let’s imagine you want to get a permanent street trading business licence in the London Borough of Hounslow. Currently, you would need to pay the following: 

• Application fee: £125.46
• Licence fee: £134.64 (per square metre, or part thereof)

Hounslow council, like many other councils in the UK, also offer more casual street trading licences (i.e. not permanent), and this comes with a reduced licence fee. This is a straightforward business licence cost, but other licences have a more complex pricing structure. For example, the premises licence, which you need to sell alcohol in England and Wales.

The premises licence application fee is based on what’s called the ‘non-domestic rateable value’ of the property you want the licence for. 

The ‘non-domestic rateable value’ is an estimate of the annual rent the property would achieve on the open market. 

You can use this tool to find your business rates valuation, but as a general guide, premise licence application fees range from £100-£635.

Other licences, like registering a food business in the UK, are free — win!

But, if you’re going to set up a food business, you’ll very likely have to apply and pay for other licences, like a street trading licence or a premises licence if you plan to serve alcohol or hot food at night. 

Many businesses with physical premises, like beauty salons and restaurants, need to apply for a music licence from TheMusicLicence.

The cost you pay for a music licence depends on your sector and the type of tariff you need. During the application process, you usually need to provide information to TheMusicLicence like your property’s square metreage, number of employees, and venue capacity before they’ll give you a price, but you can view common music licence costs on their website. 

Tip: Music licences are priced by the day

To find out more about the cost of business licences in your area, the best thing to do is visit your local authority’s website and go from there. 

Yes, in most cases, a business licence isn’t a one-and-done deal. Most licences are valid for a set period of time: often one, three, or five years. Then, you’ll need to reapply and pay a renewal fee to keep trading legally.

But it depends on the licence. For example, the SIA Public Space Surveillance Licence is valid for three years. But a street trading licence can have a lifespan of just one day, up to one year, or even three years, depending on the type of licence and your local authority. 

It’s a good idea to keep a note of your renewal dates because if you forget to renew your licence, it can lead to fines, penalties, or even being forced to stop trading until the licence is restored. It’s also important to make sure you’re always following each licence’s terms and conditions while in business. 

As a founder, there might come a time when you need to do a UK business licence check — perhaps on a supplier or competitor.

There’s no single register for all licences, but you can start by using the Government’s business licence finder to find out what kind of licence the company you’re researching may need. 

Then, you can check local authority records, as most licences are issued by local councils. For example, you can search the City of London’s public register to find specific licences they have issued to businesses. 

You can also check other registers, like the online environmental public register, to find where specialised business licences are issued. 

Did you know that a dedicated business current account can help you keep track of business licence fee costs, as well as other business expenses? 

Not only does a business current account keep your business and personal finances separate, but it can also make taxes and financial reporting a lot easier. So you can stay on top of your admin and spend more time growing your business. 

In the meantime, if you’re applying for a business licence — best of luck, you’ve got this!

Generally, no. If you sell craft items on Etsy, you don’t need a specific licence for the marketplace itself. However, you must still follow all consumer safety laws for your products. Remember to register as a sole trader or a limited company if you intend to make a profit.

You’ll need several. Mandatory licences include food business registration (from your local council) and premises approval. If you plan to serve alcohol, you’ll also need at least one personal licence holder on staff. Plus, you’ll also need TheMusicLicence if you want to play background music.

Not every business needs a licence. You can start a business (like freelance graphic design or consulting) simply by registering as a sole trader or limited company. You only need a business licence in the UK if your specific trading activity or location is regulated for safety or public interest.

A business licence number is a unique reference number issued by the licensing authority when your application is approved. This number confirms your official permission to trade in that specific activity. It’s what you use for all official correspondence related to that licence.