When running a business, having the relevant industry-required licences — or business permits — is essential. Starting operations without the proper licences can easily cause a business to breach laws and regulations. So whether you are planning to start a business in Australia or are already running one, understanding upfront the licences and legal requirements that apply to your industry is critical. This article walks you through the licences and key considerations for operating various types of businesses.

1. What is a licence, and what does it do?

A Licence, or business permit, can be understood as legal authorisation to do something. The licences a business needs are documents that authorise it to carry out relevant commercial operations, business activities, and services, ensuring professionalism and protecting the business, consumers, and employees. Licences can regulate activities, locations, events, services, equipment, premises, operators, and more.

2. What licences should your business hold?

Determining which business licences your company should hold depends mainly on the following 3 factors:

1. The type and structure of the business

2. The business activities carried out

3. The business location

In addition, the first step in identifying the right licences is to check the Australian Business Licence Information Service (ABLIS) for your state or territory.

3. About ABLIS

ABLIS stands for the Australian Business Licence & Information Service. ABLIS is a search tool designed to help business owners find information about business licences and registrations, council approvals, codes of practice, fees, and more in a more streamlined way. Through the ABLIS website, users can find requirements and regulations on licence fees, how to apply, durations, and renewals based on information from each Australian state and territory.

4. What are some common business licences?

Different industries, businesses, and commercial activities require different types of business licences or permits.

Common business licences include the following:

1. Food Business Licence

Food businesses — such as restaurants, cafes, food manufacturers, and food vans — all need to hold a Food Business Licence. This licence is generally administered by local government. A licence is issued once the compliance and suitability of the business premises, along with the owner’s skills and knowledge in providing safe food, have been assessed and approved.

Regulations around food and beverages vary from state to state. In New South Wales, if you are covered by the Food Act 2003, you will need a licence from the NSW Food Authority.

In Queensland, you may need a food business licence from the Brisbane City Council before you can start serving customers. You will also need to register with your local council to ensure your business runs smoothly.

In Victoria, most food and beverage businesses require a Class-2 food safety licence. In addition, businesses must have a food safety supervisor and hold Level 1 and Level 2 food hygiene certificates.

2. Liquor Licence

Businesses dealing in alcohol will need a liquor licence. There are also different types of licences depending on the business setup — for example, an on-premises licence, a club licence, a hotel licence, or a special event licence. Venues that do not meet liquor licensing and training requirements may be subject to legal penalties.

People who serve alcoholic drinks, such as bartenders, need to complete the Responsible Service of Alcohol (RSA) course in advance.

If your venue conducts gambling activities alongside serving alcohol, staff will also need to complete the Responsible Conduct of Gambling (RCG) course.

3. Supermarket Licence

If you are running a supermarket business — such as the Chinese supermarkets and convenience stores commonly seen in Australia — you will need to apply for a Class-3 food safety licence from your local council.

If the supermarket sells alcohol, the relevant liquor licence is required.

If the supermarket sells meat or seafood products, you will need to apply for a meat sales licence and seafood sales licence.

If the store is large and uses forklifts, or the warehouse requires forklifts, you will need to apply for a Forklift Licence.

4. Construction Licence

The construction industry has no single licence that authorises a business to carry out building work. Businesses engaged in construction-related work may need to consider the following licences depending on the type of work. In addition, construction workers are generally required to hold a White Card:

A building licence

Heavy machinery licence

High risk work licence

Use of land licence

5. Real Estate Licence

To engage in real estate activities in Australia, you will need a Corporation Licence in your state. Real estate activities include the following. If your business operations include any of these activities, you may need a qualified Real Estate Agent:

Property sales

Auctions

Property management

Handling stock

Community management

6. Financial Services Licence

If your business provides financial services or operates in the financial sector, you will need an Australian Financial Services Licence (AFSL). Financial services companies are also regulated by the Australian Securities and Investments Commission (ASIC).

Financial services include the following:

Dealing in financial products

Providing financial advice

Managing investment schemes

Managing insurance-related claims, and more.

5. Which industries require a Police Check?

The following industries require people to pass a Police Check before being employed:

Health industry

Legal industry

Education/training industry

Public service industry

A Police Check reveals legal matters a person may have been involved in, or is currently dealing with — such as criminal trials and court orders. In New South Wales, a Police Check does not reveal past minor convictions. The check is designed to give employers enough information to decide whether someone can be a trusted employee.

Final thoughts

When running a business or commercial venture in Australia, holding the relevant licences is essential — failing to do so can lead to unpredictable legal consequences and penalties. Before registering and operating a business, we recommend consulting a professional to help ensure your business meets regulatory and compliance requirements.