“Business licence” is a phrase that comes up constantly and means almost nothing as a single thing in the UK. Unlike many countries, the UK doesn’t have a generic “business licence” you apply for. What we have is a patchwork of activity-specific permits, registrations, and approvals. Most businesses need none. Some need several. This guide walks through what’s actually required for the most common UK small businesses, and where to look it up if your trade isn’t on the list.
There’s no generic UK business licence
The UK doesn’t issue a “business licence” the way some countries do. You don’t need permission to start a business – only to do specific regulated activities. Companies House registration is not a licence; it’s a filing that creates a legal entity. Your first step after starting a business is usually to ask not “what licence do I need” but “which of my activities are regulated”.
Licences and registrations most businesses might need
A short list covers most small UK businesses: ICO Data Protection registration if you process customer data; HMRC tax registrations (Self Assessment, VAT, PAYE – these are registrations, not licences, but operationally similar); a premises licence if you sell alcohol, late-night refreshment or regulated entertainment; food business registration (free, with the local authority) if you handle food; Health and Safety Executive registration in specific industries; a local-authority street trading licence if you sell from a stall or van; and trade-specific licences set out below.
Trade-specific licences (common examples)
Childcare: Ofsted registration. Healthcare: Care Quality Commission registration. Construction trades: trade-body certifications such as Gas Safe and NICEIC. Food production: Food Standards Agency registration plus local authority. Beauty, tattoo, piercing: local-authority licensing. Taxi or private hire: local-authority licensing. Driving instructor: DVSA registration. Financial services: FCA authorisation if your work is regulated. Money-laundering supervised business (accountancy, estate agency, certain consultancy): HMRC AML registration. Waste carrier / scrap metal: Environment Agency or local authority.
How to find what applies to you
Three places. The gov.uk Licence Finder takes your trade and location and lists the relevant licences and registrations. Your local authority website (search “[your council] business licensing”) covers anything local-authority-administered. A trade association almost always has a “do I need a licence” page for the sector. Companies House does not issue trade licences; don’t waste time there.
Online businesses and licences
Selling online from the UK usually needs no special licence beyond the rules above (subject to GDPR/ICO registration). Selling alcohol online still needs a premises licence and a personal licence – being online doesn’t exempt you. Selling food online needs the food business registration. Selling regulated products (medicines, supplements, weapons) is activity-specific and usually heavily licensed. Selling to consumers means Consumer Contracts Regulations and the Distance Selling rules apply.
International trade considerations
Importing or exporting goods to or from Great Britain needs an EORI number – free from HMRC, takes a couple of working days. Some exports of controlled goods (defence, encryption tech, dual-use items) need export licences from the Export Control Joint Unit. Cross-border services have VAT place-of-supply rules to think about rather than licences. Most service-only businesses need no specific permit to serve overseas clients.
Common pitfalls
Assuming you need a licence when you don’t (wasting weeks on research). Assuming you don’t when you do (food businesses are the classic miss; ICO is the second). Operating without AML supervision in a regulated trade. Letting a licence lapse and continuing to trade. Not telling your insurer that a licence is in place – many policies require it as a condition.
What happens if you trade without a required licence
Civil sanctions include fines, business closure orders, and withdrawal of the right to trade. Criminal sanctions apply for serious cases: food safety breaches, financial services without FCA authorisation, controlled substances. Insurance often becomes void if you trade without a required licence – which means a subsequent claim (theft, fire, public liability) is rejected. Customer complaints can also trigger Trading Standards involvement.
When to check — and when to re-check
Before you start trading. When you change your trading activities (new product line, new service category). When you move premises – local rules vary. When new regulation is announced (subscribe to gov.uk updates for your sector and the ICO newsletter). And once a year, at year-end review, alongside the rest of your compliance check.
Frequently asked questions
The questions UK small businesses ask most often about licences and registrations.
Do I need to register my limited company with my local council?
Not generically. Companies House registration is enough for the company itself. You may need separate local registrations or licences for specific activities (food, alcohol, late-night refreshment, premises licences, etc.). Check the gov.uk Licence Finder for your trade and location.
I'm a freelance consultant. Do I need any licences?
For most professional consulting (marketing, business strategy, software, design): no specific licence. You'll likely need: ICO data protection registration, HMRC Self Assessment registration if self-employed, and professional indemnity insurance (not a licence but often contractually required).
Do I need a licence to sell food online?
Yes. Any business handling food — including baking from home and selling online — must register as a food business with the local authority where the kitchen is. Registration is free and required at least 28 days before trading. Local authority will inspect.
I want to sell alcohol online. What's required?
A personal licence (for whoever authorises sales) plus a premises licence (covering the premises from which sales are dispatched — typically the warehouse or fulfilment site). Both come from the local authority where the premises are located. Selling alcohol without these is a criminal offence.
What's the EORI number and do I need one?
Economic Operators Registration and Identification number — required for moving goods between Great Britain and outside the UK (including the EU). Free to apply for via gov.uk. Most businesses get one in a couple of working days. You don't need one for service-only businesses.
I'm a financial services consultant. Do I need FCA authorisation?
Depends on what you do. Giving regulated advice (investments, insurance, mortgages) needs FCA authorisation. Strategy consulting to financial firms doesn't. The line can be subtle — get specific advice if your work touches regulated activities.
Are licences and accreditations the same thing?
No. Licences are legal requirements imposed by government or regulators. Accreditations (e.g. ISO 9001, Cyber Essentials Plus, professional body memberships) are voluntary marks of quality. Plenty of businesses operate legally without any accreditations.
My licence is up for renewal. What's the typical lead time?
Varies by licence — typically 4-12 weeks. Premises licences and Care Quality Commission renewals can take longer if there's an objection or inspection. Diary renewal dates 90 days before expiry to give yourself buffer.
