Business licence in the UK: do I need one?
When you decide to start a business in the UK, you must check if it is subject to licensing. Or are there any other permits required? What authorities do you need to contact to get them?
You will be happy to learn that not all commercial activities are licensable. In the majority of cases you just need to register a company with the Companies House and the HM Revenue & Customs for corporation tax.
What businesses must be licensed in the UK
Like in many other countries the most common licensable businesses are retail and wholesale sale of alcohol and tabaco products. They are followed by retail food stores and supermarkets as well as pet shops.
The services market offers licensed taxis, hotels, hairdressers and barbers and of course childcare centres, nurseries and kindergartens. It is completely logical that the British government would look after life and health of its citizens.
Other licensable businesses
If you intend to play some background music in a shop, you must get a licence.
Financial activities are licensable, including money lending services, fiduciary services, assets and investment management consulting or any money-related activities.
It is also common in England to grant one-off licences for example for public events such as charity fund raising, prize draws, etc.
We have names just a few businesses and activities that must be licensed — there are much more. To avoid breaking a law and paying a penalty, it is advisable to get in touch with legal experts that have been working with businesses to become licensed.
How and where to get a business licence
To start with, make a list of things you are going to do. Check what type of licensing organisation you need to apply to — it can be either a local authority or a professional body.
Some business activities, e.g. sale of alcohol, would require following strict rules and instructions published on the government website. Others would only be legal if they have several licences.
Example of a licensable business
Let’s say you want to open a bar. Apart from the main activity, sale of alcohol, that must be licensed by a local regulator or local authority, you will be playing pop music — that means you have to be licensed by the Phonographic Performance Limited & Performing Right Society that protects copyrights. If you decide to install any slot machines, you must be licensed by the UK Gambling Commission.
If your activity is related to finances, e.g. money lending and debt collection, you are licensable by the Financial Conduct Authority.
No matter what business activity you want to undertake in the UK, check if you need a licence and if yes, how to get it; otherwise you are asking for trouble. There is a special search tool on the www.gov.uk website where you can check that. An even better suggestion is use services of professional legal advisers that will help you get any required permit or licence whenever required and on time.
