HowToCloseCompany

Industry guide

How to Close a Restaurant Business in the UK

Closing a restaurant or food service limited company involves surrendering a premises licence, notifying environmental health, winding down staff tip arrangements, and resolving kitchen equipment leases — on top of the standard company dissolution process. This guide covers every step.

Surrender or transfer your premises licence

A premises licence under the Licensing Act 2003 authorises the sale of alcohol and regulated entertainment. You must notify your local licensing authority within 28 days of ceasing licensable activities. You can either formally surrender the licence (submit the original to the licensing authority) or transfer it to a new operator. Failure to notify is a criminal offence.

Deregister your food business with the local council

Food businesses are required to be registered with their local authority. Notify your local Environmental Health department that the food business is closing. While there is no formal 'deregistration' fee, failing to notify may result in unnecessary inspection visits and complications.

Settle staff tip and tronc arrangements

If your restaurant operated a tronc scheme (a collective tip-sharing arrangement), ensure all accumulated tips are distributed to staff before closure. Any undistributed tronc funds cannot simply be retained by the company — this would be a breach of the Employment (Allocation of Tips) Act 2023.

Close supplier trade accounts and notify delivery platforms

Settle all outstanding invoices with food and drink suppliers and formally close your trade accounts. Notify delivery platforms (Deliveroo, Uber Eats, Just Eat) of your closure date and arrange for any withheld funds or pending payouts to be released.

Resolve kitchen equipment and music licences

Return any leased catering equipment or settle hire purchase agreements. Sell or transfer owned equipment before dissolution. Cancel PPL and PRS music licences if your restaurant played recorded or live music — both require written cancellation notice.

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