Business Discussion

When it comes to running a business, there are a lot of things to think about and a lot of paperwork to put in place. One thing that you will need to consider is whether you need a business licence of some sort.

There are a whole raft of possible licences that you might need, so it is important to understand what they are and whether they apply to you. Here, Chander Bagger, Principle Solicitor of Valens Solicitors takes a look at what a business licence is and which businesses require one.

What is a business licence?

In the UK, most businesses do not require a licence, however, there are some specialised activities for which you may need one. The most well-known licence is for alcohol sales, but this is also the case for selling or hiring out animals. If you work in construction, there are special licences that will be needed, and the health and beauty industry also requires them for certain treatments.

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If you run an events-based business, you may need one or more licences depending on what you offer. In addition to this, taxi drivers, food outlets, hotels, childminders, nurseries, dog breeders and those offering certain financial activities will also need their own licences in order to trade.

Whilst there are some businesses that will need a licence for every time that they open their doors, there are also one-off licences that are available for certain activities such as street parties or public events.

You will not just need licences to perform the main part of your business, you may also need others to play background music or use CCTV. There are tools on the government website which can tell you exactly what licences you will need according to the business you run, where in the country you are located, and the other aspects of your day to day running.

Alcohol licences

Alcohol licences are needed to sell alcohol, and so all pubs, bars and restaurants will require one. Depending on your circumstances, you may need a licence for the premises as well as personal licence for the designated premises supervisor. It is also important to remember that the law covers those who supply alcohol on a permanent basis, even if it is free.

Music licences

Music licences are in place to pay royalties to the writers and performers of music. This covers any music which is played in public, whether it is background music in a shop or salon or within a performance.

It is important to remember that this includes music played on the radio, through the television or any other device even if it has been purchased as this is only meant for domestic use. These can be obtained from PPL PRS.

Applying for a business licence

Many licences are granted by the local authority, and the requirements for this can vary from council to council. It is advisable to speak to them directly to establish exactly what they require from you. There are also other outside agencies which also supply licences, such as the FCA or Ofsted.

The cost of a licence will depend on which one you are applying for, and it can also sometimes be governed by the size of your business. These licences can also vary according to your local authority, so it is important to do your research in advance to know exactly what it will cost you.

Applying for the right business licences can be time consuming and costly but it is important that you get these in place before you open your doors to ensure that your business is legal and compliant and you are not left vulnerable to fines and penalties.

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