Many UK businesses need a licence, permit or registration before they can lawfully trade, and operating without the right one can mean fines or closure. Which licences you need depends entirely on what your business does. Here is a plain-English guide for England and Wales.
The golden rule: it depends on your activity
There is no single "business licence" in the UK. Instead, specific activities trigger specific requirements. Start by listing everything your business will do, then check which of the following apply.
Common licences and registrations by activity
- Selling food or drink, register your food business with the local authority's environmental health team (free, and generally required at least 28 days before opening); food hygiene rules apply. Note that some higher-risk food businesses (for example those handling certain products of animal origin) need specific approval in addition to, or instead of, registration.
- Selling alcohol, you usually need a premises licence (or, in some cases, a temporary event notice) under the Licensing Act 2003; sales must generally be authorised by a personal licence holder, and there must usually be a designated premises supervisor who holds a personal licence (also required for late-night refreshment and some entertainment).
- Financial services / lending / insurance / payments, you generally need authorisation from the Financial Conduct Authority (FCA) (and credit-broking/consumer-credit activities are FCA-regulated).
- Recruitment / employment agency, must comply with the Conduct of Employment Agencies and Employment Businesses Regulations.
- Travel / package holidays, may need ATOL (for flights) and to comply with package-travel rules.
- Taxi / private hire, driver, vehicle and operator licences from the local authority.
- Street trading / market stalls, a street trading licence/consent.
- Waste carrying / disposal, registration with the Environment Agency.
- Playing music in your premises, a music licence (PPL PRS).
- Childcare or care services, registration with Ofsted or the Care Quality Commission (CQC).
- Letting property (HMOs), landlord/HMO licences from the local authority.
- Importing/exporting, an EORI number and, for some goods, import/export licences.
Registrations that apply to almost everyone
- Data protection fee, if you process personal data, you will often need to pay the ICO data protection fee (under the Data Protection (Charges and Information) Regulations 2018) unless an exemption applies.
- HMRC, register for Corporation Tax (companies), Self Assessment (sole traders/partners), VAT (over the threshold) and PAYE (if employing).
- Premises, consider planning permission/change of use and business rates.
How to find out what you need
- Use the GOV.UK "licence finder" tool and check with your local authority.
- Check sector regulators (FCA, CQC, Environment Agency, Ofsted, etc.).
- Ask a solicitor or trade association if you are unsure, operating without a required licence can be a criminal offence.
Practical tips
- Apply early, some licences take time and may need inspections.
- Keep licences current, renew on time and comply with conditions.
- Re-check when you change what you do, a new activity may need a new licence.
Key takeaways
- There is no single business licence, requirements depend on what your business does.
- Common triggers include food, alcohol, financial services, recruitment, travel, taxis, waste, music, care, and property letting.
- Almost all businesses also handle HMRC tax registrations and (if processing personal data) the ICO data-protection fee.
- Use the GOV.UK licence finder and your local authority/regulator, apply early, and re-check when your activities change, trading without a required licence can be a criminal offence.
Sources
- Licensing Act 2003 (alcohol; premises and personal licences); food business registration (Food Safety Act 1990 and hygiene regulations)
- Financial Services and Markets Act 2000 (FCA authorisation); sector regulators (CQC, Ofsted, Environment Agency); local authority licensing
- HMRC tax registrations; Data Protection (Charges and Information) Regulations 2018 (ICO data protection fee); GOV.UK licence finder
--- This article is general information about the law of England & Wales as at 2026, not legal advice. For advice on your circumstances, consult a qualified solicitor or your local authority.