Registering with HMRC or Companies House gets you legally trading — but it doesn’t automatically mean you’re licensed to do whatever it is your business actually does. A wide range of activities need a separate licence or permit, on top of business registration, and this applies identically whether you’re a sole trader or a limited company.
Why this is easy to miss
There’s no single central register that tells you “here’s every licence your business needs.” Licensing is split across local authorities, national regulators, and sector-specific bodies, and the requirement is triggered by what you do, not how you’re structured. It’s entirely possible to correctly register as a sole trader or incorporate a company and still be trading illegally because a sector-specific licence was never applied for.
Example: A newly incorporated company running a food delivery service from a rented kitchen unit is correctly registered with Companies House and HMRC — but still needs food business registration with the local council, and potentially additional hygiene or premises approvals, before trading.
Common categories that need a licence or permit
This isn’t exhaustive, but covers the areas that catch small businesses out most often:
- Food businesses — registration with the local council is required for anyone selling food, including from home, market stalls, or delivery-only setups, generally at least 28 days before starting to trade
- Alcohol sales — a premises licence and/or personal licence is required for selling alcohol, whether from a shop, venue, or event
- Waste carrying — businesses that move their own commercial waste, not just producers using a licensed contractor, often need a waste carrier registration
- Street trading and markets — local authority permits are usually required, separate from any food hygiene registration
- Taxi and private hire — vehicle, operator, and driver licensing, all handled at local authority level
- Childcare — Ofsted registration (or the equivalent in Scotland, Wales, or Northern Ireland) is required beyond general business registration
- Construction and trades — some specific activities (like gas or electrical work) require accreditation through recognised industry bodies, which then feeds into building regulations compliance
- Import/export — certain goods require specific licences depending on what’s being moved and where
- Use GOV.UK’s licence finder tool, which asks about your business activity and location and returns the licences that are likely to apply
- Check directly with your local council, since many licences (food, street trading, some environmental permits) are administered locally and vary by area
- Check with the relevant industry or professional body if your sector has one — trade associations often maintain clear guidance on what’s mandatory versus optional
- If in doubt, ask before you start trading rather than after, since operating without a required licence can mean fines, forced closure, or invalidated insurance
Example (sole trader): A sole trader starting a home-based cake business needs to register as a food business with their local council, regardless of how small the operation is — this applies even if sales are only through social media or word of mouth.
Example (limited company): A limited company installing domestic boilers needs its engineers to hold Gas Safe registration — a company structure doesn’t substitute for the individual qualification required to do the work.
How to check what applies to you
Because there’s no single list, the most reliable approach is:
The insurance connection
This is worth flagging on its own: business insurance policies often assume you’re operating within the law, including holding any required licences. If something goes wrong and it turns out a required licence was missing, insurers can refuse to pay out — turning a licensing oversight into a much bigger financial problem than the licence itself would have cost.
The practical takeaway
Licensing requirements are one of the few areas where “I didn’t know I needed one” doesn’t offer much protection — the responsibility to check sits with the business owner, not with HMRC or Companies House to flag at registration. A five-minute check against your specific activity and location before you start trading is far cheaper than finding out after the fact.