What Licence Do I Need For My Business?

Licences are an essential aspect of running a business. In certain industries, business owners must obtain specific licences before commencing operations to comply with the law and regulations in New Zealand. 

In this article, we’ll explore some of the licences required in various industries and other legal prerequisites you might need to be aware of in New Zealand. 

What Is A Licence?

A licence is a form of legal permission to engage in a particular activity. For businesses, a licence authorises the operation within a certain industry or the provision of a specific service. 

Similar to how a driver’s licence allows you to drive, different business licences enable the conduct of various activities. To obtain a licence, individuals typically need to demonstrate that they meet certain standards and requirements. 

The type of licence your business requires will depend on the industry, the nature of your operations, and your location within New Zealand.

What Licence Do I Need For My Business?

Different industries have different licensing requirements. You can find out which licence you might need for your business in New Zealand here. Below, we’ve detailed some common business licence obligations. 

Building and Construction Licence

The building and construction industry encompasses a wide range of work, and there isn’t a single licence that covers all construction activities. 

Depending on the nature of your business, you might need to consider obtaining: 

• A building consent
• Heavy machinery operation licence 
• Resource consent for land use
• High-risk work licence 

Food and Beverage Licences 

Food and beverage regulations in New Zealand are governed at the national level. If you’re operating a food business, you will need to register with the Ministry for Primary Industries under the Food Act 2014. It’s crucial to ensure you have all the necessary documentation to operate your business smoothly. 

For mobile food businesses, such as food trucks, you will need to obtain a mobile trading licence from your local council. Make sure to check the specific requirements for your area! 

Alcohol Licences 

If your business involves the sale of alcohol, you will need an alcohol licence unless you qualify for an exemption. There are different types of licences, such as on-licence, off-licence, club licence, or special licence. You can find out which one you need here. 

The person serving alcohol must also have completed the training for Responsible Service of Alcohol (RSA). Non-compliance with licensing and training requirements can result in legal penalties, so it’s important to adhere to these regulations. 

Financial Services

In New Zealand, a financial service provider must be registered and, in some cases, must also join a dispute resolution scheme if they provide services to retail clients. This includes services related to: 

• Financial products
• Financial advice 
• Crowdfunding platforms
• Investment schemes 
• Insurance

You can apply for registration as a financial service provider online. 

Real Estate

To operate a real estate business in New Zealand, you need to be licensed by the Real Estate Authority. Activities in this sector include:

• Property sales
• Auctioneering
• Property management
• Business broking
• Residential property management

If your business engages in any of these activities, you will need a licence from the Real Estate Authority. 

Hospitality and Accommodation

Hotels and other accommodation providers require various licences due to the multiple services offered. If you’re planning to open a hotel, you’ll need to research local regulations to determine the necessary licences for:

• Food and beverage service
• Alcohol sales 
• Recreational activities
• Health and safety  

Medicines and Therapeutic Goods

Businesses dealing with therapeutic goods must comply with the regulations set by the Medsafe, the New Zealand Medicines and Medical Devices Safety Authority. The website provides comprehensive information on the types of goods that can be sold and the requirements associated with them. 

To become a distributor, you will need to meet Medsafe’s standards, and more information can be found on their website. 

It’s also crucial to familiarise yourself with the Medicines Act 1981 and the Dietary Supplements Regulations 1985, which govern the advertising and sale of therapeutic goods in New Zealand. 

What Other Requirements Should I Know About?

While business licences are a fundamental requirement for operating a business, certain industries in New Zealand may also require individuals to undergo security checks. For instance, roles involving work with children or vulnerable people often necessitate a police vetting process. 

Working With Children Check

In New Zealand, a safety check, including a police vet, is required for any person working in a role that involves regular or overnight contact with children. This is part of the Vulnerable Children Act 2014. The check assesses a person’s suitability to work with children based on their criminal history and other relevant information. 

Police Check

Various industries may require a police check before employment, such as the health sector, legal profession, education, and public service. A police check in New Zealand discloses a person’s criminal and traffic convictions and any charges they may be facing. You can apply for a police check through the Ministry of Justice. 

Police checks are considered a snapshot in time, and there is no set expiry date. However, organisations may have their own policies regarding the frequency of checks. 

Do My Employees Need A Particular Licence To Work?

As mentioned earlier, certain professions require individuals to hold specific licences or certifications. For example, construction workers may need a Site Safe passport, and real estate agents must be licensed by the Real Estate Authority. 

Before hiring, ensure that potential employees have the necessary licences, certifications, and qualifications for their roles within your business. 

What If My Business Is Online?

For online businesses, additional legal requirements are necessary to ensure a secure online presence. These include:

• Website Terms and Conditions
• Privacy Policy 
• Cookie Policy 
• Data Breach Response Plan 

Each business may have unique requirements, so don’t hesitate to contact us for more tailored advice. 

If your business intends to license certain Intellectual Property, you may need to draft an IP Licence Agreement that suits your specific arrangement. Our expert IP lawyers can assist you with this – contact us today! 

Key Takeaways

Ensuring your business is legally compliant with New Zealand laws starts with obtaining the correct licences. Neglecting this can put your business at risk, so it’s vital to understand the licences or permits you may need. 

To summarise our discussion: 

• Licences provide permission to conduct specific business activities 
• Businesses and staff may require various types of licences 
• Common business licences include those for alcohol, construction, food service, and financial services
• Employees may need special licences, training, or qualifications 
• Security checks like police vetting may be necessary 
• Online businesses should consider additional legal policies
• An IP Licence may be required to legally allow others to use your intellectual property

For a consultation on obtaining a licence for your business in New Zealand, reach out to us at 0800 002 184 or [email protected] for a free, no-obligations chat.

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