The business license is a specific document that enables the conduct of business and operation in a specific business area. Generally, the license is issued by the government, agency, or government agency. The requirement to obtain a license prior to starting a particular business is usually stipulated by law.

Doing business without a license when the law requires it to be purchased is illegal and the government inspector may impose a fine requiring the cessation of activities unless the required license is obtained. Licenses usually relate to specifically regulated business areas such as banks, alcohol and cigarette trading, oil business, provision of taxi services, security services, etc. When applying for a license, several requirements must usually be met so that the business is guaranteed carried out with a high level of professionalism and will meet the specific requirements. The overall object of licensing is the protection of public interests such as health and safety as well as the control of strategic or relevant industries.

License and permit Many types of businesses require certification or permits beyond the regular licenses. Compared to license, the permits refer to authorization in order to carry out activity that is connected and directly linked to the company's activities. For example, fire-security permit, in case your company uses any flammable materials or, if your premises will be open to public, such as restaurants, shops and other public buildings. Permission to use parking, if you provide taxi services, permit to start new building or renovation as well as permit from environment protection bodies, if your business may affect the environment, etc.

Business activities, requiring license or permission At the company formation and business start-up stage it is necessary to identify, if any license is required. License is usually required when providing financial services, such as banking, since the strict regulation of European Union law is applicable. The same applies to other monetary services that involve money transfers, financial institutions, insurance companies and insurance brokers, trade with obligations and securities, trade with jewelries and gambling. In some jurisdictions license for auditors, attorneys at law, notaries, bailiff require permission. Acquisition of a license is necessary for construction works on the site. Different type of sales tax should be applied in case some jurisdictions require seller’s permit and, in addition, registration in the tax registry, VAT payer registry or acquisition of a tax free certificate.

Depending on type of products, the licenses and permits can be necessary for different scopes, for example, for alcohol trade you might require wholesale or retail license, or license for strong alcohol beverages and beer. If the company conducts business related to sale of excise products such as coffee, oil, tobacco, or provides warehouse services for above-mentioned products, such activities require the acquisition of a license.

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Last-modified: 2021-09-21 (火) 23:16:22 (27d)