A common assumption among new founders is that registering your business is all you need to do before trading. In many cases that is true — but depending on your sector, specific licences, permits, or regulatory registrations may be legally required before you can operate. Missing these can result in fines, forced closure, or personal liability.
Most businesses can trade freely once registered with HMRC or Companies House and do not require a specific licence. However, regulated sectors — including food and drink, financial services, healthcare, childcare, taxi and private hire, alcohol sales, and private security — require specific licences or authorisations before trading. The relevant licence may come from a local authority, a government agency, or a professional regulator depending on the activity involved. Operating without a required licence is a criminal offence in some sectors regardless of business size.
Licence requirements are sector-specific and sometimes location-specific, so checking with your local authority and the relevant industry regulator early in your planning is the safest approach. Our guides to starting specific types of business and the legal requirements for regulated sectors cover the key scenarios UK founders are most likely to encounter.