A business licence means formal permission from a government or regulatory body to carry out certain business activities that are considered regulated or higher-risk.
In the UK and London, business licences are only needed for specific sectors and activities.
For example, you need a licence to sell alcohol, run a taxi, or operate a food business, but not to be a web designer or accountant.
Also read: How to Check if a Business is Legitimate in London?
Do All London Businesses Need a Licence?
No, most businesses in London do not need a licence just to trade. Registration with HMRC as a sole trader, partnership, or limited company is generally sufficient for professional services or online businesses.
Licences are only necessary for activities that are regulated to protect the public, such as hospitality, transport, childcare, and entertainment. For example, a Shoreditch pop-up bar must get a premises and personal alcohol licence, while a freelance graphic designer in Hackney does not require any business licence.
If you’re not sure, the government’s Licence Finder tool allows you to check, by activity and postcode, exactly which permissions you need for your London borough (check link in our resources section).
Common Types of Business Licences in London
London’s sheer size and diversity mean it leads the UK in every type of licensing. Here are the main types relevant to the capital:
- Any venue selling alcohol requires both a Premises Licence and a Personal Licence for the designated supervisor. (Startup Loans).
- As of mid-2024, London held 34,590 premises licences, the highest of any UK region. (GOV.UK)
- London accounts for approximately 17% of all licensed premises in England and Wales, with around 31,000 licences to sell alcohol and 19,000 late-night refreshment. (London.gov.uk)
- Under the London Local Authorities Act 1991, a “Special Treatment Licence” is required for premises providing services like massage, manicure, acupuncture, tattooing, and cosmetic piercing. (London Borough of Hounslow)
- Driving others for reward requires specific taxi or private hire vehicle (PHV) driver and vehicle licences. (GOV.UK)
- As of the week ending 11 January 2026, there are 16,135 licensed taxi drivers and 104,459 private hire driver licences in circulation in London. (Transport for London)
- A major recent trend is Selective Property Licensing. Starting 24 November 2025, most privately rented homes in 15 of Westminster’s 18 wards will legally require a licence to ensure they meet health and safety standards.(Westminster.gov.uk)
- Selling anything on the street, at markets, or door-to-door requires a street trading licence from your borough council. Rules vary by borough and even by neighbourhood. (City of London Corporation)
- Nurseries and childminders in London must be registered with Ofsted, which sets out clear licensing and inspection rules for child safety. (Ofsted)
Who Issues Business Licences in London?
The governance of licensing in London is split between local borough councils, regional bodies, and national regulators.
London’s 32 boroughs and the City of London issue most operational licences for alcohol, food registration, and special treatments.
Taxi and private hire licensing is managed centrally by Transport for London (TfL) rather than local councils. (Transport for London)
Specialised sectors are managed by national agencies. The Security Industry Authority (SIA) licences security guards and door supervisors. (Security Industry Authority)
London remains the primary hub for the private security industry, with more than 128,000 individual SIA licence holders based in the capital as of November 2025. (Professional Security Magazine)
The Financial Conduct Authority (FCA) authorises firms involved in lending, insurance, or debt recovery. (Money)
Important Resources
If you have anything further to add regarding this subject, we encourage you to reach out.
Disclaimer: All the information provided was correct at the time of publication (January 2026) and was collected with the help of accredited tools and AI.
Passionate reporter and editor for the LBN Directory, sharing the latest London business news, trends, insights and more.
