Do you need a business licence to start a business in the UK? You might need a business licence to operate in some trades or industries, or operate a vehicle.<\/p>\n\n\n\n
If you want to know how to get a business licence, or find out how much a business licence costs, read on for a simple guide.<\/p>\n\n\n\n
In the following article we cover: <\/p>\n\n\n\n
In general, you can set up a small business without a business licence. All you need to do is set up as self-employed<\/a>, choosing a legal structure<\/a> for your business and registering with HMRC<\/a>.<\/p>\n\n\n\n But many specialised business activities need you to have a business licence. These include (but aren’t limited to):<\/p>\n\n\n\n Some individual activities may also require one-off licences, for example, street parties or other public events.<\/p>\n\n\n\n There are other business types that may need a licence before they can trade, too. These include taxi companies<\/strong>, food outlets<\/strong>, hotels<\/strong>, and dog breeders<\/strong>.<\/p>\n\n\n\n The licences that you need will be specific to your business and we can\u2019t run through them all here. It\u2019s best to use gov.uk\u2019s licence finder<\/a> to help you work out whether you need a business licence.<\/p>\n\n\n\n This tool lets you enter your business activities and then lists the licences that you might need. For example, if a hairdresser<\/strong> located in England<\/strong> wants to:<\/p>\n\n\n\n The tool suggests that this hairdresser will need:<\/p>\n\n\n\n You need an alcohol licence from your local licensing authority if you want to sell or supply alcohol.<\/p>\n\n\n\n You may need both a premises licence (which authorises the premises itself to sell alcohol) and a personal licence (one person on the premises must be a designated premises supervisor, who holds a personal licence).<\/p>\n\n\n\n If you run a hospitality venue, keep in mind that the temporary provision automatically granting off-sales rights to on-licensed premises expired on 31 March 2025. If you want to continue takeaway alcohol sales, you now need explicit permission on your licence.<\/p>\n\n\n\n You should also prepare for operating costs to change, as alcohol duty rates increased in line with inflation from 1 February 2026.<\/p>\n<\/div>\n\n\n\n There\u2019s detailed guidance about alcohol licensing<\/a> on the UK government website too.<\/p>\n\n\n\n Whether or not your business has an alcohol licence, you can charge a corkage fee to customers who bring in their own alcohol. While traditionally referring to wine (hence \u2018corking\u2019), a corkage fee can be used to cover other alcohol under a BYOB (bring your own booze) rule.<\/p>\n\n\n\n Businesses without an alcohol licence can charge customers a corkage fee to drink on the premises, as a licence isn\u2019t needed to consume alcohol bought elsewhere. If you allow customers to bring in their own alcohol, a corkage fee helps cover the costs of serving and chilling the drinks, as well as time spent washing glassware.<\/p>\n\n\n\n Businesses with an alcohol licence may also let customers bring their own alcohol \u2013 charging a corkage fee to help recover the loss of earnings from not ordering from the bar.<\/p>\n\n\n\n It\u2019s not necessary for a business to charge a corkage fee (or how much to charge), so you can choose what works best for your business.<\/p>\n\n\n\n If your business operates a venue or hosts public events, you need to understand the Terrorism (Protection of Premises) Act 2025, commonly known as Martyn\u2019s Law. This new legislation requires those responsible for certain premises to consider how they would respond to a terrorist attack.<\/p>\n\n\n\n The government introduced a 24-month implementation period starting from April 2025, meaning the rules will be fully enforced by 2027. The rules are split into two tiers based on capacity:<\/p>\n\n\n\n For small businesses, this could reasonably apply to a larger restaurant, theatre show, or music venue.\u00a0Read more about Martyn\u2019s Law<\/a> on the UK government website.<\/p>\n<\/div>\n\n\n\n Licences for small businesses in the UK are generally granted by individual local authorities. The UK government’s licence finder<\/a> will help you find the right authority for your business, based on your postcode. If you\u2019re in any doubt, you should speak to your local authority directly.<\/p>\n\n\n\n There are, however, exceptions to this \u2013 we highlight some of these below.<\/p>\n\n\n\n You\u2019ll need a licence if you want to play recorded music in public, for example, in a shop or fitness studio. <\/p>\n\n\n\n You\u2019ll need to speak to PPL PRS, who are the licensing body for music in the UK. Read more about getting this type of licence at the PPL PRS website<\/a>.<\/p>\n\n\n\n If you want to run a child care or childminding business<\/a>, you\u2019ll need to apply for a licence from a specific government body:<\/p>\n\n\n\n If you\u2019re carrying out certain financial activities, such as lending money or recovering debts, you\u2019ll need to be authorised by the Financial Conduct Authority (FCA)<\/a>.<\/p>\n\n\n\n If you\u2019re hoping to run a financial services business, you should get guidance directly from the FCA.<\/p>\n\n\n\n Another licence you may need when running a business is an operator licence. This is a legal requirement if you\u2019re operating certain types of commercial vehicles in the UK \u2013 such as trucks or taxis.<\/p>\n\n\n\n You should apply for a PHV operator licence<\/a> from your local authority \u2013 or from Transport from London if you\u2019re based in the capital. You\u2019ll need to be over 18 years old (21 in some areas) and meet certain criteria:<\/p>\n\n\n\n You\u2019ll also be required to pass the government\u2019s Disclosure and Barring Service.<\/p>\n\n\n\n If you\u2019re planning to operate your private hire vehicle in London<\/a>, you\u2019ll also need a Transport for London (TfL) driver\u2019s licence. The two types of driver\u2019s licence you can get are:<\/p>\n\n\n\n No matter which authority you\u2019re working in, or which type of licence you get, you\u2019ll need to renew it every five years. It\u2019s also important to get the relevant insurance for your private hire vehicle<\/a>.<\/p>\n\n\n\n If you’re operating a goods vehicle in the UK, you’ll need to make sure you have an O licence. This is a legal requirement if you\u2019re operating a goods vehicle in the UK. Goods are considered anything not permanently attached to the vehicle \u2013 such as stock for your business. You\u2019ll need an O licence even for rental vehicles if you\u2019re using them for commercial reasons.<\/p>\n\n\n\n Your O licence will specify the number of vehicles covered \u2013 but you must own or be hiring at least one vehicle to get your operator\u2019s licence. The licence is held by the person who \u2018uses\u2019 the vehicle(s). This can be the driver (even if they don\u2019t own the vehicle) or the driver\u2019s agent \u2013 such as an employer.<\/p>\n\n\n\n There are three types of O licence available when you use a commercial vehicle in your business:<\/p>\n\n\n\n You can apply for and manage your O licence<\/a> on the UK government website.<\/p>\n\n\n\n The cost of a business licence depends on the type of licence you’re applying for. It may also be affected by other factors.<\/p>\n\n\n\n For example, premises licences for alcohol in England and Wales are subject to an application fee, but that fee is based on the rateable value of the business premises (the UK government website says that application fees range from \u00a3100 to \u00a31,905 for premises licences, depending on the fee band of your venue).<\/p>\n\n\n\n Individual local authorities set the cost for licences they provide, so the cost can differ depending on where your business is based. Your local authority will publish a list of its licence costs on its website.<\/p>\n\n\n\n You can find your local council here<\/a>.<\/p>\n\n\n\n If you’re applying for an O licence for your commercial vehicle, you’ll be charged not only for your application, but again when the licence is issued and for any major changes made to it.<\/p>\n\n\n\n Even if you don’t need a business licence, you must follow health and safety rules and procedures. Every business has health and safety responsibilities, but the specific requirements may vary depending on the nature of your work and where it takes place.<\/p>\n\n\n\n The Health and Safety Executive (HSE)<\/a> also grants permissions and licences for specific business activities. If you\u2019re carrying out one of these risky activities and you don\u2019t have permission or a licence, you may be breaking the law.<\/p>\n\n\n\n You can find out more rules by reading our simple guide to health and safety for small businesses<\/a>.<\/p>\n\n\n\n As one of the UK’s biggest business insurance<\/a> providers, we specialise in public liability insurance<\/a> and protect more trades than anybody else. Why not take a look now and build a quick, tailored quote?<\/p>\n\n\n\n\n
How to check whether you need a business licence<\/h2>\n\n\n\n
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What about alcohol licensing?<\/h3>\n\n\n\n
How does this work when charging a corkage fee?<\/h3>\n\n\n\n
What about Martyn\u2019s Law for venues and events?<\/h2>\n\n\n\n
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Who grants UK business licences?<\/h2>\n\n\n\n
Business licences for playing recorded music in public<\/h3>\n\n\n\n
Business licences for childminding and nursery businesses<\/h3>\n\n\n\n
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Business licences for financial activities<\/h3>\n\n\n\n
Getting an operator’s licence<\/h2>\n\n\n\n
Private hire vehicle (PHV) operator licences for taxis<\/h3>\n\n\n\n
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O licence (operator\u2019s licence) for heavy goods vehicles<\/h3>\n\n\n\n
Types of O licence<\/h3>\n\n\n\n
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How much is a business licence?<\/h2>\n\n\n\n
What about health and safety rules?<\/h2>\n\n\n\n
More useful articles for small business owners<\/h3>\n\n\n\n
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Ready to set up your cover?<\/h3>\n\n\n\n