Some Insights on Business Licensing

One of the most exciting moments for entrepreneurs is when they're setting up their business and registering their company. However, forming the company may not be the last thing that you may need to do as the law may require you to acquire a professional licence for business before you start operating.

Some experts recommend entrepreneurs to register their companies as limited as they are likely to enjoy some benefits from the law. After formally registering your firm according to the law, your business gains a good reputation among other businesses. Insurance companies can give you a good deal and hence saving some money on your business insurance. Depending on the laws in your state/country, your business license may be compulsory before you can operate legally. Examples of such businesses in the United Kingdom include pubs, outlets selling alcoholic drinks, tobacco, and gambling.

For events that are not done every day such as annual events where beer is sold, the law requires the businesses to acquire a temporary business license during the period of operation. The law also requires an organization that intends to raise funds through a lottery to obtain a license. The documents can be obtained from the local authorities. Different operations require different types of licenses. A good example is the license issued to driving instructors.

For you to qualify for an insurance cover against accidents and injuries, you may require individual licenses that are issued by the DVLA. According to the United Kingdom's Licensing Act 2003, a businessman has to obtain two types of licenses to run enterprises such as public restaurants and clubs. The documentation allows you to sell alcoholic drinks to your customers. The licenses are applied from the local authority's offices from your area of operation.

You can fill a form at the nearest local authority's offices or download it from the official website of the Department for Culture, Media, and Sport. The website has all types of licenses issued by the government. Therefore, you'll be able to identify the most relevant document.

For bookmakers, you are required to obtain the relevant license from the Gambling Commission. Once you acquire the license, it will be valid for the next ten years. After the lapsing of that period, you will need to renew the document from the relevant authorities. The local authority determines whether or not to give the new license. Usually, the government considers your conduct over the last ten years. During the renewal process, the business people pay the necessary fees which usually varies depending on the type of business that you are running. The law may require you to have an accredited qualification from the relevant sector to receive a license.

For example, business people who run public pubs or restaurants may need to show that they have some skills in public house management. The police department in your area of operation is also involved in the issuance of personal licenses as they provide information relating to criminal records. Even after you receive the document, the local authority may revoke it if there are serious concerns about your conduct.

Failure to follow the relevant laws regarding the running of your business may also lead to the revocation of your license and hence the end of your business as you cannot operate without it. Since not all enterprises require license for business to operate, you should find out from the relevant bodies whether you need one. However, it is recommendable for you to have a license as it will make it easy for you to obtain an insurance cover for your business.

This article does not necessarily reflect the opinions of the editors or management of EconoTimes