Business licences

What is a business licence?

A business licence acts as a permit granted by either a relevant professional body, regulated body, or the government, to allow a business to carry out a desired activity or trading.

There are a large variety of business-related activities and products that require permission to be granted before businesses can carry out that particular activity or sell that particular product (eg selling alcohol on a premises).

Business licences aim to keep business owners and their customers (consumers or other businesses) safe. For example, they:

• promote best business practices

• monitor particular business activities within society

• keep businesses accountable for their activities and actions

• protect the health and safety of customers and staff members

The licences your business needs will depend on your industry and the jurisdiction in which the activity or trade takes place (ie e England, Wales, or Scotland). For more information on which licences are relevant for your business, see the government’s guidance on finding a business licence.

Music licences

If you run a business where you play live or recorded music, it is likely that you will need a licence. This includes situations where you:

• have recorded music playing in public or at your business (eg music supplied by a radio, CD or music channel)

• organise live, staged music events in public (eg a concert or festival)

• play music in a theatre for a production or just background walk-in music. This can include:

  • live music (ie via in-person musician accompaniments)

  • recorded music (ie via a sound system)

  • sound recordings (ie on-stage and off-stage effects)

You can check if your business or organisation needs a licence and obtain it via the PPL PRS website. PPL PRS is the licensing body for music in the UK.

Public events and entertainment licences

Some one-off events that include ‘licensable activities’ and take place in public or on unlicensed premises may also require licences (eg street parties). This applies whether an individual or business is organising the activity.

Different types of entertainment premises (eg nightclubs, live music venues, and cinemas) and other venues may also require a licence or other authorisation from a licensing authority (eg the local council) in order to provide entertainment.

For more information about whether you need a licence for the entertainment activities your business provides, read the government’s entertainment licensing guidance.

Temporary Event Notices

In England and Wales, a one-off public event licence is known as a Temporary Event Notice (TEN). The licensable activities for these occasions can include selling/serving alcohol, supplying entertainment (including dancing), and even serving hot food between 11pm and 5am. TENs are often restricted based on the number of people included, how long the event lasts for, and how many you can apply for per year.

For more information on applying for a TEN, read the government ‘s guidance on TENs.

Public entertainment licences

In Scotland, a licensable activity that requires a one-off event to have a licence is an activity that has public ‘entertainment’ or recreation on premises where the public is admitted, whether or not there is an entry fee (eg fairgrounds). Each council has its own list of what they class as entertainment and the exceptions (eg athletic events on a sports ground).

A public entertainment licence is needed for business activities that fall within this definition. An ordinary public entertainment licence may be necessary for continuous business activities, but a temporary licence is available for one-off events. To obtain this licence you will need to apply through your local council. 

For more information, read the government’s guidance on public entertainment licences or see your local council’s website.

You may be fined for organising any public events without the correct licence and for any false statements made on your licence application.

Note: You could be fined for organising any public events without the correct licence and for any false statements made on your licence application

Television licensing

You will need to apply for a TV licence if your staff, customers, or visitors:

• watch or record any live TV programmes on any channel or streaming service

• download or watch BBC programmes on iPlayer

This applies to any device provided by your business. Your business may be fined up to £1,000 if you record or watch live TV without the correct licence.

Businesses that provide overnight accommodation (eg bed and breakfasts) will need a TV licence if they offer a TV in their guest rooms. 

You will not need a licence for:

• non-live films or programmes provided by streaming subscription services (eg Disney Plus, Amazon Prime Video or Netflix)

• on-demand TV services (eg All 4 or ITVX)

• videos on social media websites (eg Youtube)

• DVDs and video tapes

A TV licence can be purchased online from the TV Licensing website.

Financial activities licences

For certain regulated financial activities and consumer credit activities (ie the business of individuals taking on debt to buy goods and services), a business will need a licence from the Financial Conduct Authority (FCA). 

Regulated financial activities can include:

• accepting deposits

• dealing with investments and asset administration

• creating, running or winding up a collective investment scheme

• dealing in stocks and shares (ie securities)

• dealing with insurance contracts

Consumer credit activities involve transactions with non-commercial parties (ie individuals), including:

• lending money

• selling on credit or hire purchase terms to consumers

• hiring or leasing out goods for more than 3 months

• recovering debts

• advising on personal debt issues

For a licence to carry out regulated financial activities or consumer credit activities, you’ll need to apply directly to the FCA and meet the conditions for your type of business. 

Childminding licences

All childminding and nursery businesses must be licensed. For this you’ll need to apply for a licence from a specific government body:

• Ofsted in England

• the Care Inspectorate in Scotland

• the Care Inspectorate Wales in Wales

Alcohol licences

Alcohol licences in England and Wales

Any business or individuals that plans to sell or supply alcohol must be licensed or hold another authorisation from a licensing authority. This is usually your local council.

You will either need a premises licence or a personal licence. In some cases, you may need a club premises certificate instead of a premises licence, if you are a qualifying members’ club. Once issued, premises licences can last until the business is shut down but you will be required to pay an annual fee.

Any business with a premises licence or club premises certificate must have an appointed designated premises supervisor (DPS). This is usually the general manager of the premises. The DPS must hold a personal licence, which allows them to sell alcohol on behalf of the business. General bar, pub, catering, and waiting staff are not required to have a personal licence to serve alcohol. 

To hold a personal licence, you must:

• be over 18, and

• hold a relevant licensing qualification

Once issued, a personal licence lasts indefinitely unless it is surrendered or revoked.

For more information, read the government's guidance on alcohol licensing.

Alcohol licences in Scotland

In Scotland, to carry out ‘licensable activities’ at a particular venue you will have to contact your council to apply for a premises licence. This includes selling or serving alcohol, providing entertainment, or dispensing hot food at nighttime. The premises licence will be valid for an unlimited duration after being issued, but you will need to pay the annual fee.

To sell alcohol on licensed premises, the sale must also be authorised generally or specifically by a designated premises supervisor (DPS) or a personal licence holder. It is common practice for other staff members to also obtain personal licences so they can also authorise sales and administer staff training.

To apply for a personal licence in Scotland, you must:

• be over 18

• hold a relevant licensing qualification, and

• not already be in possession of a personal licence or have had one revoked in the past 5 years

Unlike in England and Wales, personal licences are only valid for 10 years. Personal licence holders who plan to renew their licence must:

• complete refresher training every 5 years to maintain up-to-date knowledge of the licensing regime, evidence of which must be sent to the relevant Licensing Board, and

• apply to renew their licence no later than 3 months before the expiry date of their current licence

Gambling licences

If your business relates to arcade games, betting, bingo, casino, any other gambling machines or lotteries (including remote versions, eg mobile games) then you will probably need a licence.

There are 4 types of licences that you may need. Your business may need all of them. They are:

• an operating licence (from the Gambling Commission) - if your business provides any of the activities above you will need this licence. There are 3 categories of operating licence:

  • non-remote

  • remote

  • ancillary

• a personal management licence (from the Gambling Commission) - people responsible for some activities at licensed gambling operators require this type of licence

• a personal functional licence (from the Gambling Commission) - people involved in gaming or handling cash in relation to gambling at a casino (eg a dealer or pit boss) must hold this type of licence

• a premises licence (from your local licensing authority) - you should ensure you have applied for an operating licence before applying for this

You can apply for an operating licence from the Gambling Commission using their online application service. 

You might need to contact your local licensing authority as well for some types of low-level gambling, as they are responsible for providing the permits for these types of gambling. 

For more information on gambling licences and fees, read the Gambling Commission’s guidance.

Food business registration

Any business which sells, cooks, prepares, handles, stores, or distributes food for public consumption must be registered with the local authority as a food business. This should be on the checklist for any food start-up or anyone taking over an existing food business. 

It’s usually free to register, and your registration cannot be refused, but you should register at least 28 days before opening.

Registration applies to food businesses like:

• restaurants, cafes, and take-aways

• catering businesses run from home, mobile catering, and temporary businesses

• food stalls, food pop-ups, and food vans

• distance selling, mail order, and food delivery businesses

• companies involved with food distribution or supply that operate from an office should register - even if no food is kept at the premises

If you operate more than one premise, you need to register each premise with the local authority where it’s located.

For more information, read the government’s guidance on food business registration.

Surveillance and security measures

Certain surveillance measures are considered licensable activities which require a Security Industry Authority (SIA) licence to carry out. If you plan to use surveillance personnel or equipment (eg security guards or CCTV) to guard your business premises and monitor members of the public, this will be considered ‘manned guarding’ - a licensable activity.

To use CCTV, you will need to complete the relevant qualification course and apply for a CCTV licence. If you wish to hire a security guard, you will need to ensure that they hold the correct Security Guard licence. Both of these can be applied for via the SIA website.

To apply for any SIA licence, you must:

• be over 18 

• hold a relevant qualification, and

• pass both a criminal record and identity check

For more information on SIA licences and which licensable activities require one, read the government’s guidance.

Licences for external furniture and displays

If you plan on setting up furniture outside your business premises, the licence you will need depends on the equipment you are setting up and the jurisdiction you are in.

If you are caught without the relevant licence, your business may be fined. Some fines can be thousands of pounds.

External furniture

Any business that sells food or drink for public consumption and plans to set up removable furniture on public highways (eg on the pavement) next to the business’ premises will need a licence. 

Removable furniture includes:

• stalls and counters for selling food and drink

• counters and tables for serving food and drink

• seating furniture (eg chairs and benches)

• umbrellas, heaters, or other items used in connection with consuming food or drink outdoors

In England, you will need to apply for a pavement licence through your local authority. This process used to vary from local council to council but was streamlined in March 2023 to become a single, uniform scheme. For more information, read the new government guidance.

In Wales, you will need to contact your local council for a pavement café licence.

In Scotland, you will need to contact your local council for permission to place tables and chairs on the road. 

Street displays

You will also need a licence to set up any goods displays or advertising boards on public land outside your business premises.

In England and Wales, you will need to contact your local council to apply for a pavement or street display licence. Councils have some discretion as to the conditions they may put on a licence. 

In Scotland, you are required to get written consent from your local council via a permission to use street or pavement space for displays.

Obtaining business licences

Most licences for small businesses in the UK are granted by individual local authorities. If you’re in any doubt about how to get a specific type of licence, you should speak to your local authority directly.

Your local authority will publish a list of its licence costs on its website. You can find your local authority using the government's council finder tool. 

The cost of a business licence will depend on the type of licence you’re applying for. It may also be affected by other factors.

There are many other types of licences. You can use the government’s licence finder tool to find out what specific licences you might need.