What do you need to open a bar?
Licensing decides whether your project can happen at all, so it comes before the fit-out, the drinks list or the opening party. A premises licence application can take weeks and can attract objections from neighbours or the police, so start early.
This guide is written for England and Wales under the Licensing Act 2003. Scotland and Northern Ireland have their own licensing systems: check with your council. For a bar in France, read the French version: licences there are classified by drink strength and the most complete licence can only be bought from an existing holder.
The premises licence
According to GOV.UK, a premises licence authorises the use of premises for licensable activities, and any business that sells or supplies alcohol on a permanent basis needs one. You apply to the licensing authority, usually your local council.
- Application form and plan of the premises
- Operating schedule: opening hours, activities (alcohol, music, late-night refreshment) and how you will promote the licensing objectives
- Name of the proposed designated premises supervisor
- Fee, set in regulations and based on the property’s non-domestic rateable value band
The council consults the police and other responsible authorities, and the application is advertised so that residents can comment. A realistic operating schedule (sensible hours, door policy, noise management) makes objections less likely.
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The personal licence and the DPS
A personal licence allows you to sell alcohol on behalf of any business that has a premises licence. GOV.UK sets the requirements:
- be 18 or over;
- in almost all cases, hold a relevant licensing qualification from an accredited provider;
- provide a basic criminal conviction disclosure: councils check convictions.
The designated premises supervisor is the person with day-to-day responsibility for running the business. The DPS must hold a personal licence and is nominated by the premises licence holder. In a small bar, the DPS is usually the owner or manager.
Not every member of staff needs a personal licence, but every sale must be authorised by a personal licence holder, so train your team on the rules and write down your policies.
The mandatory conditions from day one
The Licensing Act 2003 (Mandatory Licensing Conditions) Order sets conditions that apply to every premises selling alcohol. GOV.UK lists them: no sales below the cost of duty plus VAT, no irresponsible promotions, free drinking water, an age verification policy and smaller measures.
| Condition | What it means behind the bar |
|---|---|
| Free water | Free potable water provided on request where reasonably available |
| Age verification policy | Anyone who appears under 18 (or a higher age you set, such as 25) must show photo ID with date of birth and a security feature |
| Smaller measures | Beer and cider available in ½ pints, gin, rum, vodka and whisky in 25 ml or 35 ml, still wine by the glass in 125 ml |
| Measures on display | Those measures shown on a menu, price list or other printed material, and customers told they exist if they don’t specify |
| No irresponsible promotions | No drinking games or deals that encourage excessive drinking |
The full list of signs and notices to put up is in our guide on bar mandatory signs.
Writing an operating schedule that gets approved
The operating schedule is the heart of your premises licence application. It tells the council what you will do, when, and how you will promote the four licensing objectives set by the Licensing Act 2003: the prevention of crime and disorder, public safety, the prevention of public nuisance and the protection of children from harm. Vague answers invite objections; concrete ones reassure.
- Hours: ask for the hours you really need, not the latest possible. A neighbourhood bar asking for 3 am will attract objections it does not need.
- Activities: alcohol on and off the premises, recorded music, live music, late-night refreshment (hot food after 11 pm) if relevant.
- Crime and disorder: CCTV, staff training, a refusals policy, door supervision at busy times if needed.
- Public safety: capacity, fire procedures, first aid.
- Public nuisance: doors and windows closed during music, smokers’ area away from bedrooms, quiet dispersal at closing time, glass collection outside.
- Children: your age verification policy (for example Challenge 25) and whether under-18s are admitted, until what time and accompanied by whom.
Prevention of public nuisance: recorded music will be played at background level only. Doors and windows will be kept closed after 9 pm except for access. A sign at the exit will ask customers to leave quietly. Staff will collect glasses from the pavement area every 30 minutes and at closing time. The smoking area at the front will be closed at 10 pm.
Every commitment you write becomes a condition on your licence, so promise only what you will actually do every night.
Choosing the location and the concept
Before you fall for a unit, check three things that decide whether a bar can work there.
- Licensing policy: many councils publish a statement of licensing policy, sometimes with areas where new late-night venues face stricter scrutiny. Read it before making an offer.
- Neighbours: flats above or next door mean noise complaints. Soundproofing is cheaper before you open than after a review of your licence.
- Footfall and timing: an after-work bar needs offices and a station nearby; a neighbourhood café-bar needs residents and daytime trade. Watch the street at 6 pm on a Tuesday and at 10 pm on a Saturday.
Then look at your future competitors’ Google profiles: hours, photos, rating and what reviews complain about. Gaps you can fill (“nowhere to sit outside”, “no alcohol-free options”, “closed on Sundays”) are your opportunity. Our method is in local competitor analysis.
The other steps
- Food: if you serve any food, even bar snacks you prepare, register as a food business with your council at least 28 days before trading.
- Temporary events: for a one-off event elsewhere, a temporary event notice (TEN) covers events of fewer than 500 people lasting no more than 168 hours.
- Business set-up: register with HMRC, sort business rates, open a business bank account.
- Insurance: public liability, employer’s liability if you employ staff, buildings and contents.
- Music: check what your premises licence allows and which music licences you need for playing recorded or live music.
How much does it cost to open a bar? An example to adapt
The budget depends mostly on the premises and the fit-out. Here is an example grid for a small bar with purely illustrative amounts, to replace with your own quotes:
| Cost line | What it covers | Example (replace) |
|---|---|---|
| Premises | Lease premium or business purchase, deposit, legal fees | £40,000 |
| Licensing | Premises licence fee, personal licence course, plans | £1,500 |
| Fit-out | Bar counter, toilets, electrics, soundproofing, accessibility | £30,000 |
| Equipment | Beer lines and coolers, coffee machine, glass washer, glassware, furniture | £18,000 |
| Opening stock | Drinks and consumables | £5,000 |
| Working capital | Rent, wages and bills for the first months | £18,000 |
- Ask the seller for three years of till figures and accounts
- Check existing supply contracts (brewery, coffee): some bind the buyer
- Work out the margin on each drink before you set prices
The last weeks and the first months
- Premises licence granted, DPS named, personal licence in hand
- Licence summary and the DPS notice displayed, no-smoking sign up
- Drinks list with prices and the smaller measures shown
- Age verification policy written, staff briefed on ID checks
- Google Business Profile created with accurate hours and photos of the bar
- Opening night announced in the window and on social media two weeks ahead
After that, it is all about regulars and word of mouth. Google reviews matter a lot for a bar: it is how newcomers to an area choose where to go. Our bar and pub marketing ideas and Google reviews for a bar or café take it from there.
We’re opening! [Bar name] opens its doors on [date] from [time] at [address]. Local beers on tap, [speciality] and a sunny terrace. Come and raise a glass with us on opening night!
The steps at a glance
The steps to open a bar, from licensing to opening night.
- Check the premises. Talk to the council licensing team about hours and conditions before signing a lease.
- Get a personal licence. Be 18 or over, pass an accredited licensing qualification and disclose convictions.
- Apply for the premises licence. Application, plan, operating schedule, DPS named and fee paid to the council.
- Register food and the business. Food business registration 28 days before trading if you serve food; HMRC and business rates.
- Prepare compliance. Age verification policy, free water, smaller measures on the menu, signs displayed.
- Launch. Google profile, opening night, first reviews.
This guide for your trade
Go further
Sources
The rules quoted in this guide come from these official pages, checked on October 28, 2026.