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Licences are an important part of running a business. For some industries, there are specific licences business owners need to attain before they can start operating, otherwise they could be in breach of certain laws and regulations.
In this article, we’ll take a look at some of the licences certain industries demand as well as some other legal requirements you may need to know about.
What Is A Licence?
A licence is essentially legal permission to do something. In the context of businesses, a licence allows you to run a business in a certain industry or provide a specific service.
Much like how a drivers licence permits you to drive a car, different types of businesses licences give permission to conduct certain activities. In order to attain a licence, individuals usually need to prove they meet the requirements.
The type of licence you need will depend on the industry, operations and location of your business.
What Licence Do I Need For My Business?
Different industries will have varied requirements for licences. Licence requirements can also depend on your location. You can look for which licence you might need for your particular business using the Licence Finder.
We’ve elaborated on some common business licence obligations below.
Construction Licence
The construction industry is a broad field covering a range of different work. As such, there is no singular licence that permits individuals or companies to be able to undertake construction-related activities. In fact, a lot of types of construction work currently do not require licensing or minimum qualifications.
Despite this, there are still certain types of projects that demand a special licence.
Depending on the kind of work your business may be engaging in, you might need a licence if you are:
- Using explosives of any kind
- Handling more than 50 tonnes of packaging a year
- Placing street works machinery on public roads
- Changing, damaging or repairing a scheduled monument
- Exporting goods that are on the strategic export control list
Food And Beverages
Food and beverage regulations differ based on where you are located and what you are selling. Most businesses that are involved with selling, preparing, storing and distributing food must apply for a Food Business Registration licence with their local council. This needs to be done 28 days before opening your business.
Other licences you might want to look into getting are:
- Food premises approval
- Pavement licence
- Music licence
- Event licence
- Food hygiene certifications
Finally, you will likely need to write a plan based on the Hazard Analysis and Critical Control Point (HACCP) guidelines. The HACCP sets the standards for businesses engaging with food and drinks.
You can access their free resources and keep up to date by creating a MyHACCP account.
Liquor Licences
In order for your business to legally sell alcohol, there are two main types of licences you need to look into getting:
- Premises licence
- Personal licence
As the legal drinking age in the UK is 18 years and over, a person applying for either licence will naturally need to be 18 years or older.
If you are selling alcohol or serving drinks between 11pm and 5am, then you will need a premise licence (we’ve linked the one for England and Wales here).
A premise licence is for businesses but, as the name suggests, personal licences are for individuals. If you’re a business owner, it’s essential that you and any of your staff hold a personal licence prior to serving alcohol.
Additionally, certain clubs selling alcohol will require a Club Premises Certificate.
Lastly, when purchasing alcoholic beverages, ensure the wholesaler is approved by the HM Revenue and Customs (HMRC).
Financial Services
To work and have a business in the financial sector, you will need the appropriate qualifications. Along with a relevant education, there are particular certifications that also need to be attained.
There are multiple different areas of finance such as banking, accounting, investments and insurance. The kind of licence you will need to obtain depends on the area of finance you plan on operating in.
Licences that are often required in the financial services field include:
- Broker licence
- Banking licence
- Small payment institution licence
- Investment management licence
- Forex licence
Financial service firms also need to be compliant with the regulations under Financial Conduct Authority (FCA).
Real Estate
Real estate activities typically include:
- Engaging in the sale of property
- Auctioning
- Property management
- Working with stocks
- Strata or community management
There are no specific licences to run a real estate business or even become a real estate agent (education and qualification requirements can depend on the agency itself). However, real estate is still subject to other legal compliance measures such as taxes.
Furthermore, you may need to apply to the Information Commissioner’s Office (ICO) for a Notification To Process Data. This is required of most businesses that handle and process the personal information of others, such as names, addresses and bank details.
Therapeutic Goods
Therapeutic goods largely consist of medicines or medical devices that are used for curing, treating or preventing illnesses in others among other things.
There is no general licence for therapeutic goods. However, depending on what your business activities are, you may need a licence to possess or sell drug precursor chemicals.
Other licences can apply depending on your business’s operations. It’s best to keep up with the Medicines and Healthcare Products Regulatory Agency for more information.
What Other Requirements Should I Know About?
Business licences are one of the most important requirements for running any business.
However, some industries require individuals to go through a security check. If you are looking to hire, it’s not uncommon to request a DBS Check and a Criminal Record Check.
DBS Checks For Childminders and Chilcare Workers
A Disclosure and Barring Service (DBS) check is a prerequisite for any person employed in an industry where work entails coming into contact with children. This work can either be voluntary or paid employment.
The check will look at a person’s criminal history and any previous misconduct at a place of employment to determine whether or not they are suitable to be around children.
How Long Is A DBS Check Valid For?
There is no expiry date for the DBS checks. Rather, it’s up to an employer to decide when they want to conduct an updated check on an individual.
Which Industries Require A Criminal Record Check?
There are a number of industries that may require people to go through a Criminal Record Check for their criminal history prior to gaining employment. These often include work in the:
- Health industry
- Legal sector
- Education/training
- Public service
However, any employer in any industry can request a criminal history check. The check shows legal matters that a person may have gone through in the past or is currently dealing with such as criminal trials, court orders or bonds.
The check is meant to give employers enough information to decide whether or not someone can be a trustworthy employee.
Do My Employees Need A Particular Licence To Work?
As we’ve touched on above, individual agents working in particular fields are often required to hold their own licences. For example, those working in places selling alcohol will need a personal licence.
Prior to hiring any employees, make sure they have the relevant licences, checks and qualifications to be a member of your staff.
What If My Business Is Online?
If your business is operating online, then you should look into getting all the additional legal requirements in place that are needed to have a secure, online presence. This includes:
Different businesses will have their own requirements, so feel free to contact us for more specific advice.
If your business wants to licence certain Intellectual Property, you may want to draft an IP Licence that is tailored to your specific arrangement. Our expert IP lawyers can help you out with this – get in touch today!
Key Takeaways
Running a business means taking care of your legals first, and licences are a huge part of this. Not doing so can jeopardise your business’ legitimacy and compliance with UK laws, so it’s important to be on top of any licences or permits you may need.
To summarise what we’ve discussed:
- A licence gives permission to conduct a particular activity
- In business, there are many different types of licences required for both the business and the staff
- Business licences can include liquor licences, commercial licences, building licences or a commercial licence
- Individuals working within your business may need to hold special licences, training or qualifications
- Police check and working with children checks may also be required
- For online business, additional legal online policies should also be considered
- When dealing with IP, you may need an IP Licence to provide legal permission for others to use your IP on your terms
If you would like a consultation on your options moving forward, you can reach us at 08081347754 or [email protected] for a free, no-obligations chat.
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