Guide
Business licenses: what you need
Find out what licenses and permits your business needs to operate legally.
Many businesses need specific licenses or permits to operate legally. Requirements depend on what you do, where you operate, and your industry sector.
Operating without required licenses is a criminal offence. Penalties include fines, closure orders, or imprisonment depending on the violation.
Hospitality businesses: alcohol and entertainment
If you're opening a pub, restaurant, bar, or hotel, you'll typically need:
- Premises license (alcohol): £100-£1,900 depending on rateable value. Apply to local licensing authority at least 28 days before opening.
- Personal license: Required for designated premises supervisor. £37 application, must complete accredited qualification (1-day course ~£150).
- Food business registration: Free, register at least 28 days before opening.
- Music license: May be included in premises license or require separate PRS/PPL licenses.
Timeline: Start license applications 3-4 months before opening. Premises license can be challenged by residents or authorities.
Retail businesses: product safety and trading standards
Retail businesses must comply with:
- Product safety: All products must meet UK safety standards. Toys, electrical goods, cosmetics have specific requirements.
- Age-restricted sales: If selling alcohol, tobacco, knives, solvents - need age verification policies and staff training.
- Weights and measures: Scales and measuring equipment must be legally certified if selling by weight/volume.
- Sunday trading (large shops): Shops over 280m² can only open 6 continuous hours between 10am-6pm on Sundays.
No upfront license for general retail, but Trading Standards enforce product safety and consumer protection laws.
Planning permission for business use
You need planning permission if you:
- Change property use class: E.g., residential to commercial (except limited home-based business)
- Make external changes: New shopfronts, signage, extensions
- Work from home at scale: If business changes property character (lots of visitors, deliveries, parking issues)
- Listed building: Almost all changes require Listed Building Consent
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Use GOV.UK license finder
Enter your business activity and postcode at gov.uk/find-licences to get personalized list of licenses.
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Check with local authority
Contact your council's licensing team - many licenses are issued locally (alcohol, food, waste, street trading).
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Budget for license costs
License fees vary widely (free for food registration, £100s-£1,000s for alcohol, environmental permits).
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Allow 3-6 months lead time
Some licenses take months to process. Apply early - you cannot trade without them.
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Check planning permission
If changing property use or making alterations, check with local planning authority first.
Common license types by sector
- Food businesses
- Free registration with local authority 28 days before opening. Food hygiene rating (0-5 stars) after inspection.
- Alcohol sales
- Premises license £100-£1,900 (based on rateable value). Personal license £37 + qualification course.
- Waste carriers
- Upper tier license £154 for 3 years if transporting business or commercial waste. Register with Environment Agency.
- Taxi/private hire
- Driver and vehicle licenses from local authority. Medical assessment, DBS check, knowledge test. Costs vary by area.
- Entertainment
- Regulated entertainment (live music, plays, films) often covered by premises license. May need separate PRS/PPL licenses.
- Street trading
- License from local council to sell goods in streets or public places. Costs and availability vary widely.
- Environmental permits
- Required for activities causing pollution or using hazardous materials. £1,000s application fee, apply to Environment Agency.