If you’re embarking on a new business venture, you may be wondering if you need a business licence. Not all UK businesses require one, but if you do, it’s crucial to understand the legal requirements and associated costs—especially if you're recovering from debt issues or previous liquidation.
At McAlister & Co, we don’t just offer insolvency advice for small businesses, our team of licensed insolvency practitioners also supports entrepreneurs in getting back on their feet and starting again with confidence.
If you're unsure about which licences you need, or how failing to comply could affect your standing with a creditor, our simple checklist can guide you through everything you need to know.
Do I Need a Business Licence in the UK for My Small Business?
You may be surprised to know, but not all small businesses in the UK require a business licence, and if you are properly set up with HMRC and have selected an appropriate legal structure, you may be able to trade without one. However, a number of business activities require you to have a licence, for example one of the most popular is the alcohol licence, if you’re proposing to serve alcohol on your premises.
Does your business fit with any of these categories? If so, you will require a business licence:
- Serving alcohol
- Taxi services
- Serving or preparing food
- Hotels
- Pet shops and grooming parlours
- Hairdressers
- Childminding or nursery schools
- Financial services, such as lending or recovering money
It’s worth noting that if you intend to play recorded music, for example in a retail shop or café, you will require a separate licence.
The types of licences change depending on what part of the UK your business is operating in; there are different Food premises approval licences for England, Scotland, Wales and Northern Ireland.
How to Get a Business Licence in the UK
Your first step is to work out what type of business licence you need. You can use the government’s Licence finder website to help you do this and there is extensive information on Alcohol licensing and all the other kinds of licence you may need.
Once you have outlined your type of business, you can then add all the additional business requirements which may also require separate licences, for example, distributing free promotional material, putting signs up on the pavement to advertise your business or requiring the use of CCTV.
The website will also tell you where to apply for your business licence – most licences are generally granted by individual local authorities.
Using the Licence finder, you will be provided with appropriate point of contact for your application though there are some exceptions, such as if you wish to run a childminding business. You will need to apply to a specific government body, for example Ofsted in England or the Care Inspectorate in Scotland. And if you wish to play music in your premises, contact PPL PRS – the specific music licensing body.
How Much Does a Business Licence Cost?
The cost of a business licence in the UK can vary significantly depending on the type of licence you’re applying for and the location of your business. For example, alcohol licences in England and Wales come with an application fee based on the rateable value of the premises. Other licences, such as food business registration, street trading, or entertainment licences, have different pricing structures that are usually determined by your local authority.
Costs can also be affected by additional factors such as CCTV requirements, public safety obligations, or whether your business involves the handling of sensitive customer data. Because business licensing is regulated locally, it’s essential to check directly with your local council to get an accurate estimate of fees. Most councils provide up-to-date pricing and application information on their websites.
Business Licence Application Checklist for UK Businesses
Follow these steps to ensure you meet all business licence requirements and avoid costly delays or legal issues:
- Use the Online Licence Finder Tool: Visit GOV.UK’s Licence Finder to identify the licences and permits your business needs based on your sector, activities, and location.
- Factor in Additional Requirements: Determine whether your business operations trigger extra conditions such as CCTV installation, handling of customer data, or public health and safety measures.
- Contact Your Local Authority: Always check with your local council to confirm which specific licences are needed and the associated costs. They can also advise on any changes to local regulations or application processes.
- Apply and Pay the Fee: Submit your applications either online or in person, and ensure you pay the correct licence fee. Keep records of payment and approval notices for future reference.
Insolvency Advice for Small Businesses: What If My Business Is Struggling with Debt or Insolvency?
While securing the right business licences is crucial when launching a new venture, it’s just as important to ensure your business is financially resilient—especially if you're already facing financial difficulties, cash flow problems, or mounting business debt.
If your small business is struggling to meet its obligations or pay HMRC, you may be at risk of insolvency. This doesn't mean you're out of options. At McAlister & Co, we specialise in offering tailored insolvency advice for small businesses, helping you explore every avenue—whether that’s improving your cash flow, negotiating a time to pay arrangement, reviewing a company voluntary arrangement (CVA), or considering voluntary liquidation if recovery isn’t viable.
Our team of experts can talk you through the most appropriate insolvency procedure, taking into account your trading position, liabilities, and options for business rescue. We work with business owners across the UK, supporting them through both formal and informal routes to recovery.
If you’re unsure what steps to take or simply want to understand the options available, get in touch with McAlister & Co for free insolvency advice. We’ll provide clear, honest guidance on how to protect your business, your cash flow, and your future.
Is It Time For Expert Advice?
If you require more information on business licences, we can help: request a free, no-obligation consultation with one of our experienced team. We can talk through all your licensing requirements and help you to apply for them if necessary. Specialising in insolvency advice for small businesses, contact us today.
