A business licence is a permit issued by a municipality, provincial authority or industry regulator, required before certain types of business - food service, liquor sales, health facilities and similar regulated activities - may legally trade.
What it means
Not every business needs one; the requirement is specific to certain regulated industries and activities, and the licensing authority and requirements vary depending on the type of business and its location.
Where it fits in
It's a separate requirement from a business's tax and company registrations - a business can be fully registered for tax and still be trading illegally if it lacks a required operating licence for its specific industry.
Key rules
- Required for specific regulated industries, not all businesses.
- Issued by a municipality, province or industry regulator.
- Separate from tax and company registration requirements.
- Trading without a required licence is a compliance failure independent of tax status.
