Licences, permits and insurance: what UK start-ups must know
Some UK businesses can start trading the moment they register, but many need a licence, a permit or specific insurance before they take a single customer. Selling food, driving passengers, handling waste or serving alcohol all trigger additional rules. Getting these in place early keeps you legal, protects your customers and avoids fines. This guide outlines the main types of licence and insurance a new UK business should consider.
General business licences
There is no single licence to run a business in the UK. Instead, requirements depend on your trade and location. Some are set nationally, while others are issued by your local council. The GOV.UK licence finder lets you search by business type and postcode to see exactly what applies to you. Always check before you trade, because penalties for operating without a required licence can be significant.
Food and drink
If you sell or prepare food, you must register with your local council at least 28 days before you start trading. You also need to follow food safety and hygiene rules, and often complete food hygiene training. Selling alcohol usually requires a premises licence and a personal licence for the person authorising sales. Late night refreshment and some forms of entertainment need permissions too.
Taxi and private hire
Driving passengers for hire requires a taxi or private hire licence from your local council. Drivers, vehicles and operators often each need separate licences and checks, including enhanced criminal record and medical checks. Ride hailing and minicab work are covered by the same framework, so confirm the rules with the licensing authority for your area.
Waste, environment and trades
Businesses that transport, store or treat waste usually need a waste carrier licence or an environmental permit. Trades such as gas, electrical and plumbing work require specific registration or competent person schemes. If you handle personal data, you should also register with the Information Commissioner’s Office and pay the data protection fee.
Premises, planning and signage
If you run a shop, cafe or workshop, check planning permission and building regulations before making changes. Displaying signs, tables or advertising boards may need council consent. If you rent premises, read the lease carefully, including responsibilities for repairs, insurance and business rates.
Insurance: what is required
Employers liability insurance is legally required for most businesses that employ staff, and it covers claims from employees injured or made ill at work. You must be covered from the day your first employee starts, and you must be able to show your certificate. Failing to hold it can lead to daily fines, so treat it as a priority.
Insurance that protects your business
- Public liability: covers injury or damage to third parties or their property.
- Professional indemnity: covers advice or services that cause a client loss.
- Contents and stock: covers equipment, tools and inventory.
- Business interruption: covers lost income after a disruption.
- Cyber cover: covers data breaches and online attacks.
How to get licensing right
Start by listing every activity your business performs, then check national and local requirements for each one. Speak to your local council’s licensing team, and use GOV.UK guidance for national schemes. Build licence fees and insurance premiums into your start up budget, and diarise renewal dates so cover never lapses.
Health, safety and other duties
Almost every business has basic health and safety duties towards staff, customers and visitors. Even a one person operation should assess risks and keep things safe. Depending on your trade you may need to display a health and safety law poster, record accidents, or arrange specialist inspections for equipment such as gas appliances, lifts or pressure systems. Good practice protects people and reduces your insurance risk.
Advertising and trading standards
Whatever you sell, your advertising must be accurate. Descriptions, prices and claims must not mislead, and you must give consumers the information the law requires. If you sell age restricted goods, such as alcohol, knives or fireworks, you need systems to check age. Trading standards teams enforce these rules, and complaints can lead to fines and reputational damage, so treat fairness to customers as part of compliance.
Get your paperwork ready early
Licence applications can take weeks or months, and some require inspections before approval. Start the process as soon as you know your plans so you are ready to trade the moment your lease, equipment and staff are in place. Keep copies of every certificate and reference number, and note each renewal date. Being able to show a licence on request builds trust with customers and inspectors alike.
Turning compliance into confidence
Customers trust businesses that are properly licensed and insured, and many will check before they buy. Display your credentials on your website, your invoices and your directory profile. It shows you take your obligations seriously. When your licences and cover are in place, add your business to the directory so local customers can find a business they can rely on.