Business Licence UK: Who Needs One and How to Apply

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The United Kingdom has certain requirements for any business that an individual wishes to operate, including, but not limited to, the need to secure licences and permits. It is important to determine if your business will need to be licensed, and if so, how to go about obtaining such a licence, to help safeguard your interests and those of your clients.

This article will highlight the steps involved in acquiring a business licence and which businesses require a licence.

What is a business licence?

A business licence is a permit issued by government authorities that enables an individual or an entity to operate a business legally within a defined jurisdiction. The requirement for obtaining these licences can differ based on the business type and its location, encompassing federal, state, and local regulations.

The purpose of the licence is to make sure that a business complies with local regulations and protects consumers from unsafe practices.

There are different types of business licences depending on your business activities. If you are selling goods, you will not receive the same licence as an individual offering professional services like medical care or legal advice.

Requirements for obtaining a licence may vary by location and industry. It is important to do your research and check the requirements needed to apply for the licence.

Which businesses need licences in the UK?

Food and drink business

Any food business, whether a restaurant, a cafe, or a food shop, should register with their local authority. This registration is useful to the authorities because it helps them control the preparation and serving of food within the required health and hygiene standards.

Businesses that deal with meat, fish, eggs, or dairy products are required to undergo inspections and may need to obtain approval from their local council. The licence approval will be decided by the council.

However, you will not need the council to approve your business if you sell directly to the public or retailers like caterers, pubs, and restaurants. Additionally, you will not need to be approved as long as:

·         food is less than 25% of your trade

·         you do not handle any wild game meat products

·         you do not sell food outside the county your business is registered in

Though you don’t need to be approved, you must still follow the rules for controlling the temperature and storage of any food you transport.

Alcohol business

If you wish to engage in the alcohol business you will be required to acquire at least an alcohol licence from the relevant local authority. The procedure for application includes the need to show that the application will abide by certain regulations that include ensuring that the customers are of age and also that the sales will be done responsibly.

Businesses and organisations that need alcohol licences are:

·         pubs and bars

·         cinemas

·         theatres

·         nightclubs

·         late-opening cafes

·         takeaways

·         village and community halls

·         supermarkets

The types of licences required in the alcohol business include:

·         any businesses selling alcohol supplies on a permanent basis need to apply for a premises licence

·         anyone who plans to sell or supply alcohol or authorise the sale or supply of alcohol must apply for a personal licence

·         Qualifying members’ clubs (such as the Royal British Legion, working men’s clubs, and rugby clubs) need to apply for a club premises certificate if they plan to sell or supply alcohol.

Entertainment

It is important for businesses engaged in activities that provide entertainment services, such as performance venues, clubs, and cinemas, to seek additional entertainment licences from the local authority.

The said licences take care of issues regarding noise management, occupancy limits, and safety procedures among others.

Businesses and organisations that typically require a licence for entertainment may consist of:

·         nightclubs

·         venues hosting live music

·         cinemas

·         larger theatrical venues

·         major street and open-air festivals

·         larger indoor sports arenas

Specifically, a licence may be mandated for:

·         any provider of entertainment during the hours of 11 PM to 8 AM;

·         anyone offering amplified live or recorded music to an audience of over 500 attendees.

·         those who provide recorded music to an audience in establishments that do not possess the necessary licences for the sale or distribution of alcohol;

·         those who perform theatrical plays or dances for audiences exceeding 500 participants, or conduct indoor sporting events with more than 1,000 attendees;

·         those who host boxing or wrestling events;

·         those who screen films for an audience.

Business in the financial industry

All Companies and individuals must be sanctioned by the Financial Conduct Authority (FCA) before they engage in any offering regulated financial services and extend credit to customers.

Regulated activities are connected with investments prescribed by the Treasury or property and comprise:

·         managing investments (transfer of ownership or purchase of stocks, etc) or making an offer or committing to doing the same, and in the case of contracts of insurance, performing the agreement.

·         Structuring investment arrangements

·         Collecting deposits

·         Asset management and protection

·         Investment oversight and advisory services

·         Formulating, operating, or terminating collective investment schemes

·         Conducting investment transactions through computer or web platforms

·         Engaging in the trading of securities, such as stocks, shares, or their certificates, along with options and futures

·         Managing debentures, bonds, and loan stocks, including government-issued bonds

·         Overseeing units of collective investment schemes

·         Administering insurance policies

·         Participating in Lloyd’s syndicates

·         Arranging loans secured by real estate and other land-related transactions

Public space surveillance (CCTV) licence

A CCTV licence is essential for those who are responsible for monitoring premises, property, or individuals using any form of CCTV equipment for the following objectives:

-          to observe the public or to identify certain individuals

-          to deter disorder or to ensure the safety of individuals from assault, which involves using CCTV to prevent these situations or to provide evidence if they occur.

If you have a door supervisor licence, a close protection licence, or a security guarding licence, you are also authorised to employ CCTV equipment to identify trespassers or protect property.

A CCTV licence is necessary if your responsibilities involve operating CCTV equipment to prevent disorder or safeguard individuals from assault. This includes utilising CCTV to deter such incidents or to relay information regarding these occurrences to another party if they take place.

Environmental permits

Environmental permits are usually necessary for certain types of business operations that could potentially affect the environment such as waste management and even manufacturing plants. The grants are signed by the Environment Agency or any relevant organisation responsible for the regulation of the environment.

How to get a licence in the UK?

Identify the licences you need: You must carry out background research and find out what licences or permits are needed for your type of business. Go to the UK government’s site or relevant associations or experts in the fields for help.

Fill out the application forms: After you have checked the need for the permits, download or ask for the application forms. Fill in all the relevant sections correctly using the required business and personal details. You may also need to be ready with a few other attachments like an ID, where the business will be located, and a cover for the business among others.

Complete and apply: Make sure that the appropriate authority receives completed application forms with supporting documentation. Note that there are deadlines that have to be observed and any applicable fees paid. Also, ensure that you keep copies of all forms and documents submitted.

Wait for a decision: The duration within which licence applications are processed differs with the nature and level of the licence. In this regard, the concerned authorities may inspect and seek more information within this time frame. It is very important to respond to any of their requests as soon as possible.

Display your licence: Once you receive your licence, ensure that it is displayed at your business premises as required by law. Failure to do so may result in penalties or even closure of your business.

Obtaining all the relevant permits needed to run your business may be an uphill task, however, maintaining legal standards is indeed a factor if success is to be achieved in the long run. By looking into the different licences that apply to your line of work and completing the bureaucratic steps attached to this process, you will be able to facilitate the growth of your business in the UK in a legal manner.

It is prudent and always the best practice to consult a lawyer or a sector consultant who knows your business regulations to help you adhere to the regulations.

Seeking additional strategies to ensure that your company complies with all statutory obligations, consider visiting Icon Offices. We help in filing confirmation statements annually and annual accounts. We also help in registering for Value Added Tax (VAT) and EORI numbers if you are in an export and import business.

For more information contact us at [email protected].