Which businesses require licensing?

There are a range of businesses in the UK which require a licence. These are generally issued, administered, and policed by local authorities. Licensing authorities must carry out their duties in accordance with licensing objectives which aim to ensure a fair balance between differing interests and the wellbeing of communities in relation to licensable activities. The objectives of most business licenses are:

• The prevention of crime and disorder
• Public safety
• The prevention of public nuisance
• The protection of children from harm.

Different licences will have different conditions and duties attached. Your local authority will be able to tell you if your business requires a licence and how to get one if it does. Activities for which licences are required include: Dangerous wild animals, Dog breeding, Hairdressers, Massage parlours, Pet shops, Poisons, Riding schools, Sex shops, Street trading, etc. The most frequent licenses required by businesses relate to the sale of alcohol and gambling.

Sale of alcohol - Premises licences (pubs, bars, etc.)

A premises licence must be obtained from your local authority if your business serves alcohol or late night refreshments or if it puts on public entertainment events involving singing, dancing or a display of indoor sport. All premises licences are granted subject to conditions such as the hours during which alcohol can be served or entertainment provided. Anyone who holds a premises licence must keep it (or a certified copy) at the premises and prominently display a summary of it. Such venues which would need this kind of licence include:

• Pubs and bars
• Nightclubs
• Night cafes
• Cinemas
• Theatres

To make an application for a premises licence you must:

1. Submit a plan of the premises and an operating schedule
2. Give details of the designated premises supervisor
3. Advertise the application in the local press and also on the premises
4. Pay the required fee.

Where a premises licence has been issued but "an interested party" or "responsible authority" feels the conditions of the licence are not being met, they may ask the council to call that licence in for a review. If the request for a review is not rejected, the licensing authority must hold a hearing. It can then modify the conditions of the licence or suspend or revoke it altogether.

Sale of alcohol - Personal licences (restaurants, off-licences, etc)

If your business serves alcohol – e.g. in a bar, off-licence, restaurant or hotel – you must appoint a Designated Premises Supervisor (DPS) who must hold a separate personal licence to supply or authorise the sale of alcohol. To make an application for a personal licence you must: be over 18 years old; not have any relevant criminal convictions; and pass a course for an approved licensing qualification. 

Sale of alcohol - Club premises certificates

These certificates authorise qualifying clubs to use club premises for qualifying club activities which include:

1. The supply of alcohol to a member for drinking on the premises.
2. The sale of alcohol to a guest of a member for consumption on the premises.
3. The provision of regulated entertainment by the club for its members or their guests.

Offences relating to alcohol

Alcohol must not be supplied to under 18s, or anyone buying it on their behalf. Apart from some exceptions which permits 16-17 year olds to drink some types of alcohol with table meals, under 18s must not be allowed to drink alcohol on licensed premises. Under 16s are not allowed on premises used mainly for the sale or supply of alcohol for consumption on the premises unless they are accompanied by someone over 18. Disorderly conduct must not be allowed on licensed premises and it is an offence to serve alcohol to someone who is drunk. Anyone who works on licensed premises and allows smuggled goods to be kept there commits an offence. 

Gambling

It is unlawful to gamble in Great Britain unless specifically permitted by statute. Gambling is regulated by the Gambling Commission which also conducts the licensing regime for gambling, along with licensing authorities.

There are three types of licence which your business might need: operating, personal and premises. The Commission issues operating licences and personal licences, while premises licences are issued by local authorities.

• Operating licences - you need one of these if you provide facilities for gambling; and/or make, supply, install, repair or adapt a gaming machine or gambling software.
• Personal licences – there are two types of personal licence: the personal management licence – required by those who occupy a specified management office in respect of the holder of an operating licence – and the personal functional licence - required if you perform any function which enables you to influence the outcome of gambling, or relating to the receiving or paying of money in connection with gambling.
• Premises licence – those who operate from a fixed premises (as opposed to online) need to have the premises approved by the local authority for that area.

Unlike for most licences, public nuisance and public safety are not included in the licensing objectives which underpin the functions that the Commission and licensing authorities perform. The objectives are to:

• prevent gambling from being a source of crime or disorder, being associated with crime or disorder, or being used to support crime;
• ensure gambling is conducted in a fair and open way; and
• protect children and other vulnerable people from being harmed or exploited by gambling.

Some gambling and gaming activities – such as the provision of bingo in premises with an on-premises alcohol licence – fall under the category of "exempt entertainment" and don’t require you to obtain a license.