Business licence Google searches in the UK have skyrocketed, with searches for “how to obtain a business licence” surging by 250% over the past year. The rise reflects a growing concern among entrepreneurs about compliance.
To help clarify the rules, small business comparison site Bionic is sharing guidance on how to secure the right licences and the common compliance pitfalls to avoid.
Even well-intentioned business owners can fall foul of licensing regulations. With this in mind, Bionic have revealed some of the most common errors made by businesses when it comes to licensing.
Not having the correct licence
It’s not just about having a business licence, it’s about having the right ones for all your activities. There are many different types of licences, depending on what you do, and missing just one could put you in breach of regulations.
For example, even advertising outside your premises using a pavement sign will require an additional licence. You’ll need prior written permission from your local council, and, in many areas, this costs around £400 and lasts up to six months.
Forgetting to update your licence when your business changes
Business models evolve, but licences don’t automatically keep up. For example, if you’re a takeaway and begin offering a delivery service, or extend your operating hours, your licence must be updated accordingly.
Continuing to trade under outdated terms can place you in breach, even unintentionally.
Failing to display your company name
You’re legally obliged to display your company name at your registered business address and every physical location your business operates from (excluding your home, if you work remotely). For example, if you run three shops and an office (not from home), you need a sign up at each one.
Not renewing your licence
Some licences require annual or periodic renewal, and they don’t always come with reminders. Missing your renewal date could leave you unknowingly operating without a valid licence. This not only breaks the law, but can also result in fines, suspension, or closure notices.
“Many business owners don’t realise that operating without the correct business licences could put them at risk of fines, or worse,” said Laura Court-Jones, member of Bionic’s insurance team.
“For example, if you are a food-based business, an FSA licence is required. Whilst new businesses won’t always have these, your insurance policy may be subject to you achieving a certain score following an inspection.
“It’s clear businesses shouldn’t skip out on getting the specific licences for their business, as playing ignorant if you get caught is unlikely to go down well with the council.”
