Most businesses need at least one licence, permit, or registration to operate legally. The type of licences you need depends on your business activity, location, and industry sector.
Operating without required licences is a criminal offence with penalties including unlimited fines, closure orders, or imprisonment. The GOV.UK Licence Finder helps you identify exactly what you need based on what you do and where you operate.
Why licences matter
Business licences exist to:
- Protect public safety: Food hygiene, alcohol licensing, taxi licences
- Protect the environment: Waste carrier registration, environmental permits
- Ensure professional standards: FCA authorisation (financial services), CQC registration (healthcare)
- Regulate specific activities: Entertainment, gambling, late-night trading
Licences are separate from registering your business structure with Companies House or HMRC. You must first register your business, then apply for activity-specific licences before you start trading.
Common licensing scenarios
Opening a restaurant or café
A typical food business needs:
- Food business registration (FREE) - Register with local authority at least 28 days before trading
- Premises licence for alcohol (£100-£1,905) - If selling alcoholic drinks
- Late night refreshment licence - If selling hot food/drink between 11pm-5am (usually included in premises licence)
- Music/entertainment licence - If providing live music or other regulated entertainment (usually included in premises licence)
Starting a construction business
Construction businesses typically need:
- Waste carrier licence (£191.02 new registration; £130.25 renewal every 3 years) - Required to transport construction waste
- Environmental permits - For certain waste operations or emissions
- Skip licence - If placing skip bins on public roads (apply to local council)
Selling goods online or at markets
Retail businesses may need:
- Street trading licence - For market stalls, mobile vendors, or selling from public spaces (fees vary by council)
- Food business registration (FREE) - If selling any food products
- Product-specific licences - Pet shops, fireworks, knives, alcohol all require specific licences
Environmental and waste licences
Environmental licences protect the environment and ensure responsible waste handling. Common requirements include:
Waste carrier registration
You need a waste carrier licence if you transport business, commercial, or construction waste - including your own waste from your own business.
- Upper tier registration: £191.02 new registration; £130.25 renewal every 3 years - required for businesses transporting waste as part of their business (builders, waste removal companies)
- Lower tier registration: FREE - only for charities and voluntary organisations transporting their own waste
When you need it: If you remove waste from a customer's premises (builders, landscapers, clearance companies) or transport waste as a service. This applies even if you're only moving waste to the local tip.
Exemption: You don't need registration if you only carry your own waste from your own business activities and it's not waste removal or transport as your main business (e.g., an office taking its waste to the recycling centre).
Environmental permits
Environmental permits regulate activities that could harm the environment. You may need a permit for:
- Waste operations: Storing, treating, or disposing of waste beyond exempt quantities
- Emissions to air: Industrial processes, combustion plants, solvent use
- Discharges to water: Trade effluent, surface water drainage from commercial sites
- Groundwater activities: Discharges that could affect groundwater quality
Fees vary significantly: Part B local authority permits from £1,650 for standard activities. Environment Agency installation permits range from £10,000-£30,000+ depending on complexity. Apply to the Environment Agency (England), Natural Resources Wales, or the Scottish Environment Protection Agency.
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Use GOV.UK Licence Finder
Enter your business activity and location to identify all required licences. The tool covers over 30 government departments and local authorities.
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Register before you trade
Apply for licences BEFORE you start operating. Food businesses must register at least 28 days in advance. Premises licences can take 2-3 months.
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Budget for licence fees
Licence costs range from FREE (food registration) to £1,905+ (large alcohol premises). Factor these into your business plan.
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Note renewal dates
Many licences require annual renewal (waste carrier every 3 years, premises licence annual fee). Missing renewals can invalidate your licence.
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Check local authority requirements
Licensing fees and specific requirements vary between councils. Always confirm details with your local licensing authority.
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Consider multiple licences
Most businesses need more than one licence. A hospitality venue might need food registration, premises licence, entertainment licence, waste carrier registration, and music licence.
Penalties for operating without a licence
Operating without required licences is a criminal offence. Enforcement is taken seriously by local authorities and regulatory bodies.
Potential penalties
- Unlimited fines: Courts can impose unlimited fines for serious licensing breaches
- Imprisonment: Up to 6 months (summary conviction) or 2 years (indictment) for serious offences
- Closure orders: Immediate closure of premises until compliance achieved
- Prohibition notices: Ban on trading until issues resolved
- Product seizure: Removal of goods or equipment involved in unlicensed activities
- Criminal record: Conviction creates criminal record affecting future business activities
Enforcement powers
Local authorities and regulatory bodies can:
- Conduct unannounced inspections
- Enter premises without notice
- Seize goods and documents
- Issue fixed penalty notices
- Prosecute in magistrates' court or Crown Court
- Apply for closure orders
- Unlicensed alcohol sales
- Unlimited fine and/or up to 6 months imprisonment (summary), or up to 2 years (indictment). Premises closure possible.
- Operating without food registration
- Unlimited fine and/or up to 2 years imprisonment in serious cases. Emergency prohibition orders for imminent health risk.
- Unlicensed waste carrier
- Unlimited fine and/or up to 2 years imprisonment. Vehicle and waste seizure. £300 fixed penalty notice for minor breaches.
- Operating without entertainment licence
- Unlimited fine. Premises closure possible. Licence application refusal more likely after conviction.
- Unlicensed street trading
- Fine up to £1,000. Seizure of goods and equipment. Potential prosecution for repeat offences.
Legal basis
Primary legislation and key regulations
Browse UK legislation (opens in a new tab) legislation.gov.ukOfficial guidance
Food Hygiene Ratings in Wales (GOV.WALES) (opens in a new tab)
www.gov.wales
Business licences in Scotland (mygov.scot) (opens in a new tab)
www.mygov.scot
Register a food business (GOV.UK) (opens in a new tab)
GOV.UK
Apply for a premises licence (GOV.UK) (opens in a new tab)
Home Office
nibusinessinfo.co.uk (opens in a new tab)
www.nibusinessinfo.co.uk