What is a premises licence under the Licensing Act 2003?
A premises licence is granted by your local licensing authority under the Licensing Act 2003. It authorises specific licensable activities at a specific address — most commonly the sale of alcohol by retail. The licence is tied to the premises, not the company. When you close the business, you have three options: surrender the licence, transfer it to a new operator, or allow it to lapse through non-renewal. Only formal surrender removes the licence from the register immediately.
Do you need to surrender the licence when closing?
There is no absolute legal requirement to formally surrender a premises licence when a business closes — but there are strong practical reasons to do so. An unsurrendered licence continues to appear on the public register, can attract ongoing compliance obligations, and may be the subject of a licence review by the licensing authority or the police. If the licence is held in the company's name and the company is dissolved, the licence effectively becomes dormant, but the local authority may still pursue outstanding fees or conditions.
How to formally surrender a premises licence
To surrender a premises licence, the licence holder (or their agent) must submit the original premises licence document and premises licence summary to the licensing authority. Most councils accept surrenders by post or in person; some accept electronic surrender. There is no fee for surrendering a licence. The surrender takes effect as soon as the authority receives the original licence. Request written confirmation of receipt and keep a copy for your records. If the original licence has been lost, notify the authority in writing and they will issue a replacement before accepting the surrender.
Transferring the licence to a new operator
If you are selling the business as a going concern — or if the incoming tenant or buyer wants to continue licensable activities — you can apply to transfer the premises licence to a new holder. A transfer application must be made by the proposed new holder, not the outgoing licence holder. The new holder must pay the transfer fee (typically £23) and notify the Chief Officer of Police in the licensing authority's area. The transfer takes effect immediately on application, subject to a 28-day police objection period.
What happens if you just stop trading without surrendering?
If you cease licensable activities but do not formally surrender or transfer the licence, the licence remains live on the register. You are still technically the licence holder and responsible for compliance. The licensing authority can initiate a licence review, and the Designated Premises Supervisor (DPS) remains named on the licence. In practice, most authorities will not take action against a dormant licence, but it is cleaner to surrender formally. When the company is dissolved, the licence becomes an ownerless asset and may be administratively cancelled by the authority.