businesses that need licenses uk

5 Examples of Businesses You Need a Licence to Run in the UK

Starting a business comes with its challenges whatever the sector. But in some sectors and spaces, you’ll also need to contend with licensing. Here are 5 examples of businesses you need a licence to run in the UK.

Starting and running a business is a complicated affair. From finance to marketing, HR to operations, a business founder’s role in the early days is often multi faceted.

 

But for those starting businesses in some industries, there’s a whole load of compliance and regulation to contend with too. And for some types of business, you need to obtain a licence before you can even start to trade.

 

Here are 5 examples of businesses you need a licence to operate in the UK.

 

1.   Gambling Businesses

You’ll need to have a license if you intend to run any sort of gambling business. This includes the lotto betting industry, sports betting, casino and arcade betting.

 

The specific type of license you’ll need very much depends upon the specific type of business you want to run.

 

And make no mistake, getting the appropriate licenses and ensuring that you trade in a manner compliant with the license terms is no mean feat. If you’re a new business without previous experience in this space, you will almost certainly need specialist consultancy to get the right licenses and ensure you’re compliant.

 

The application process is around 16 weeks in length at the time of writing. And it doesn’t come cheap either. You can expect the fees you need to pay to vary depending on your expected turnover. But Operating License holders will incur an application fee, an annual fee due within 30 days of their license start date and then further annual fees each year for the duration of their license.

 

If you want to know how much your licensing fees will be, the Gambling Commission has a handy calculator.

 

 

2.   Tattoo Studio

 

While it’s fairly expected that you would need to licensed in a heavily regulated industry like gambling, you may be surprised to find that tattoo studios must also be licensed.

 

In order to open a tattoo studio (and the same applies to body piercing) you must apply to the local council in which you intend to open your studio for a Tattoo, Piecing and Electrolysis License.

 

The cost and terms of this license vary slightly from council to council. For example, Manchester City council’s fees (at the time of writing) are £43 for your personal registration plus a fee of £72 for your premises registration.

 

A few miles away, neighbouring Oldham council cites fees of £129.80 for premises registration plus £77 per individual to be licensed.

 

The timescales for application vary and the frequency with which you must renew also vary.

 

So if you’re planning to open a tattoo studio, we’d suggest you check your local council website first to find out licensing costs and times in order to help you plan.

 

3.   Any Business Selling Alcohol

 

This doesn’t just apply to bars and nightclubs. You’ll need an alcohol license to sell booze from a cinema, from a cafe or teeny tiny event venue.

 

This even applies if you plan to sell hampers online and some of them contain alcohol.

 

If you plan to sell alcohol from your business premises, you need a premises license.

You’ll incur a  fee that’s calculated on the rateable value of the property. Application fees range from £100 to £1,905.

You will also need to ensure a manager, supervisor or similar has a personal licence (not all members of staff need one, but someone will have to have one). Persona licence costs are £37 for individuals, plus the £25 for a DBS.

You’ll need to take the licensing fees and the application processing times into account when planning your premises launch/opening date.

 

4.   Boarding Kennels for Pets

If you plan to launch a business in the huge area of pet boarding, then licensing will be necessary. Any sort of pet accommodation or boarding kennels business requires a licence from the local authority in which their business is set up.

 

Boarding kennels, as defined by the Animal Boarding Establishments Act 1963, are businesses that provide accommodation for other people’s cats and dogs. This includes kennels that are run from a private dwelling. In other words, if you have a boarding kennel on land at your home, this will still need to be licensed.

 

Fees may vary from council to council. But as a guide, a licence to cover boarding services for dogs with Manchester City Council currently costs (inclusive of application fees and grant fees) £418 for 3 years.

 

5.   Private Hire Vehicle Operator

If you plan to set up a business in private hire, you’ll need a licence. This is handled through your local council and the fees and application times vary.

 

However, as a guide (excluding the costs of stickers), an operator licence in Manchester City Council currently costs £2,790 every 5 years.

 

On the other hand, Bolton Council fees vary depending on the number of vehicles you plan to have within your business. But operating in private hire with a business of between 16 and 50 vehicles incurs a licensing fee of £584/year.

 

So it’s vital you check with the council in which you intend to operate in terms of the costs and the application timescales.

 

 

Check if you need a license

If you’re about to launch a business and you’re not sure whether you need a license for it, you can check on the government’s License Finder website.

 

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