Registering a company or telling HMRC that you are self-employed does not automatically give you permission to carry out every kind of business activity. Depending on what you sell, where you trade and how your business operates, you may also need a licence, permit, registration or professional authorisation before you open to customers.
That is why checking business licences and permits UK requirements should sit alongside tax, insurance and banking on any startup checklist. There is no single UK business licence that covers every company. Rules vary by industry, activity and location, and some licensing systems differ across England, Scotland, Wales and Northern Ireland.
Start with the government licence finder
The GOV.UK licence finder is the quickest starting point. It covers hundreds of licences and lets you search by activity and location. A business may need more than one approval. A café, for example, may need food business registration, a premises licence if it sells alcohol, and separate permission if it uses pavement space.
Do not assume that incorporating at Companies House replaces these checks. Company registration creates the legal entity; licensing controls particular activities.
Food businesses usually need local authority registration
If you sell, cook, store, handle, prepare or distribute food, you will normally need to register the food business with the relevant local authority. This can apply to restaurants, cafés, home-based bakers, mobile caterers and online food sellers.
In England, Wales and Northern Ireland, food businesses generally need to register at least 28 days before they begin trading. Scotland has its own local authority process. Registration is a legal notification that allows the authority to oversee food safety and hygiene.
Alcohol, entertainment and late-night food can require licensing
In England and Wales, businesses that sell alcohol or carry out certain licensable activities from premises may need a premises licence from the local council. The regime can also cover late-night refreshment, including hot food or drink sold between 11pm and 5am, and some regulated entertainment.
If alcohol is sold, personal licensing requirements can also apply. Scotland and Northern Ireland operate different systems, so check the rules for the nation where the premises are located.
Street traders and market sellers may need council permission
Selling from a street, pitch or market is another area where local rules matter. In England and Wales, a street trader may need a street trading licence or consent from the local council. Market stall traders can also require a temporary or permanent market licence.
The exact rules depend on location. Some streets prohibit trading, while others restrict hours, pitches or product types. Scotland and Northern Ireland have their own arrangements, so contact the local authority before paying for a stall, vehicle or pitch.
Public music can trigger a separate licence
A shop, salon, gym, café or office that plays recorded music for customers or staff may need TheMusicLicence from PPL PRS. This is separate from a premises licence and relates to music copyright.
Some uses are exempt, including certain royalty-free music, so check the specific use rather than assuming a personal streaming subscription gives a business permission to play music publicly.
Transport businesses face specialist licensing
Transport is a good example of why industry specific permits matter. In England and Wales, a business taking private hire bookings generally needs a private hire vehicle operator licence from the relevant licensing authority, with separate rules in London.
Businesses operating heavier goods vehicles may need a goods vehicle operator licence, while passenger transport businesses can require a public service vehicle operator licence. Northern Ireland has different processes in several transport licensing areas.
Regulated professions may require registration
Some work cannot legally be carried out simply because you have formed a business. Certain professions require recognised qualifications, registration with a regulator or permission to use a protected professional title.
If your business depends on a regulated occupation, check the UK Regulated Professions Register and the relevant professional regulator before advertising services.
Waste and environmental activities can need permits
Businesses that transport, handle, recover or dispose of waste may have environmental compliance duties. The exact requirement depends on the activity and nation. In England, some waste activities require Environment Agency registration, while certain lower-risk activities may operate under registered exemptions.
This can affect builders, clearance businesses, landscapers and waste contractors. Environmental rules are easy to miss because the business may not think of itself as a waste company.
A practical pre-launch example
Consider someone opening a small mobile coffee business. They register as self-employed, buy a van and arrange insurance. They are still not necessarily ready to trade. They should check food business registration, local street trading permission, any rules for the pitch or market, and whether extra licensing applies if they later sell alcohol or play music publicly.
The practical lesson is to map each activity before launch. Write down what you sell, where customers meet you, whether food or alcohol is involved, whether you use public space, whether you transport goods or people, and whether your profession is regulated. Then check each activity against national and local requirements.
How to check what your business needs
Start with the GOV.UK licence finder, then check your local council’s licensing pages. For regulated sectors, consult the relevant national regulator as well. If your business operates across different council areas, do not assume one local authority licence covers every location.
Keep copies of licences, renewal dates, conditions and correspondence in one compliance file. Trading without the required permission can lead to fines, prosecution, closure or loss of a licence.
Frequently asked questions
Does every UK business need a business licence?
No. The UK does not have one universal licence that every business must obtain. Licensing depends on the activity, industry and location. Many businesses need no general trading licence but may still need specific registrations or permits.
Is Companies House registration the same as a licence?
No. Registering a limited company creates a legal business entity. It does not replace council permissions, professional registrations or sector-specific approvals.
Where do I apply for a local authority licence?
Usually through the council responsible for the area where the activity takes place. GOV.UK licence pages often direct you to the correct council using your postcode.
Can I start trading while a licence application is pending?
Not necessarily. Some activities must not begin until the relevant licence, consent or registration is in place. Check the rules for the specific approval rather than assuming that submitting an application is enough.
Check permissions before the first sale
Licensing is easy to overlook because it often comes after company registration. The safest approach is to check the exact activities your business will carry out before taking bookings, opening premises or making the first sale. Use national guidance, your local authority and the relevant industry regulator together. Getting the right permissions early is usually far simpler than correcting a compliance problem after trading has begun.