Business licenses are permits issued by government agencies that allow individuals or companies to conduct business within the government's geographical jurisdiction. It is the authorization to start a business issued by the local government. A single jurisdiction often requires multiple licenses that are issued by multiple government departments and agencies. Business licenses vary between countries, states, and local municipalities. There are often many licenses, registrations and certifications required to conduct a business in a single location. Typically, a company's business activity and physical location determines which licenses are required to operate lawfully. Other determining factors may include the number of employees and the business, such as sole proprietor or corporation. Government agencies can fine or close a business operating without the required business licenses.
Licensing and business registration requirements
United States
In the United States, the Small Business Administration has a list of links to State websites for State licensing requirements. Each State has its own business registration and licensing requirements. Business.usa.gov is an official business link to the U.S. Government. Business.gov, managed by the U.S. Small Business Administration.
Example: Washington, D.C.
In Washington, D.C. Most individuals and companies doing business in the District of Columbia must obtain a Basic Business License from the Department of Consumer and Regulatory Affairs. Separately, organizations must register their business. Many types of businesses require additional certification or permits beyond the Basic Business License and registration. D.C. requires a "Clean Hands Self-Certification" from most applicants, which is an affidavit stating that the applicant does not owe more than $100 to the District. Tour Guides must submit a Physician's Certificate. Fees for businesses licenses vary. The fee for a Special Event license such as a marathon is $209. The license for a movie theater costs $1,079 per year, for a grocery store $289 per year, for a beauty shop $78 per year. A Project Management Firm does not require a Basic Business License, nor does a Handyman. Residential House Painters must submit a Home Improvement Contract signed by the homeowner. Physicians and other health care professionals require licenses from the Professional Licensing Administration in the Department of Health.
Pennsylvania allows online registration of small business start-ups, but does not provide licensing guidance. Certain actions are required by all businesses in Pennsylvania in order for them to continue in business in Pennsylvania. This includes New Hire Reporting.
United Kingdom
In the UK there is no requirement to obtain a licence to run a business.
India
In India, business license is needed when you want to start a private limited company or a limited liability partnership firm. There are actually various forms of business licenses needed for various activities carried out by a business. e.g. to be able to Import or export goods and services, you need to take IEC Registration. Major authority governing licensing is Ministry of Corporate Affairs, which regulates which name you will be allowed to keep for your business and also the activities you are allowed to do in your company. It is very easy to register a Pvt Ltd Company or LLP in India, which takes not more than 10 days. Costs would depend on the state of India in which company or LLP is proposed to be registered. You may visit mca.gov.in which is the Govenment website on which you can register your company or LLP. It would cost you around INR 2000 to INR 10000 depending on what is your authorised captal in business.
