Private hire operator licence: setting up a minicab firm
Written by Sam Allcock · Last updated 23 August 2026 · Facts checked against GOV.UK and legislation.gov.uk on the date above
A private hire operator licence is the licence your business needs before it can lawfully take bookings for private hire vehicles or arrange for one to be provided - it's separate from, and additional to, the driver licence each individual driver needs.
It's issued by your local council (or Transport for London if you're operating in the capital), and it's the licence that turns "someone who drives for hire" into "a firm that can legally run a minicab operation."
Short on time?Let us prepare your application - fixed fee, and we always show you the free official route first.
Get it done for you →This guide focuses specifically on the operator licence - what "operating" legally means, what your firm must do once licensed (record-keeping, staff checks, sub-contracting), what it costs, and how it differs from the driver and vehicle licences. For the wider picture of how taxi and PHV licensing fits together, see our taxi and private hire hub or our private hire licence overview.
This is general information, not legal or professional advice. For anything specific to your business, including licence refusals or appeals, contact your licensing authority directly or a licensing solicitor.
What does "operating" actually mean, legally?
Under the Local Government (Miscellaneous Provisions) Act 1976, to "operate" means to make provision, in the course of business, "for the invitation or acceptance of bookings for a private hire vehicle" (section 80, checked 23 August 2026).
In practice, that covers running a minicab firm's booking line or app, taking a fare request and allocating it to a driver, or arranging for another operator to fulfil the booking - it's the business function of taking and arranging bookings, whether or not you personally drive.
You need an operator's licence even if every job is sub-contracted out to other drivers or firms, and even if you never get behind the wheel yourself - the licence attaches to the booking-taking business, not to driving.
Operator licence vs driver licence vs vehicle licence
These are three separate licences, and running a private hire business generally means holding, or working with people who hold, all three.
| Licence | What it authorises | Typical duration |
|---|---|---|
| Operator licence | The business taking bookings or arranging PHVs | Up to 5 years |
| Driver licence | An individual driving a PHV for hire | Usually 3 years |
| Vehicle licence | The specific vehicle used as a PHV | Set by the licensing authority |
A sole trader who drives their own minicab still needs an operator licence as well as a driver licence and a vehicle licence, if they're the one taking bookings directly from customers rather than working exclusively for someone else's licensed operator (GOV.UK, checked 23 August 2026).
Who issues a private hire operator licence?
Your local council issues operator licences if you're based outside London, and Transport for London (TfL) issues them if you're operating in the capital (GOV.UK, checked 23 August 2026).
Your operator licence must come from the same authority as the driver and vehicle licences you use - you can't mix an operator licence from one council with drivers or vehicles licensed by a different one, unless you're using the sub-contracting rules explained below.
The authority will refuse your application, or attach conditions you must accept, if it isn't satisfied you're a "fit and proper person" to hold the licence - and you can appeal a refusal to the magistrates' court (GOV.UK, checked 23 August 2026).
How to apply, step by step
- Decide where you'll be based - your operator licence, and the drivers and vehicles you use, must all be licensed by the same authority (subject to the sub-contracting rules below).
- Check your council's specific requirements - premises, insurance, staff-vetting and record-keeping expectations vary by authority.
- Apply to your council or TfL, providing the business and "fit and proper person" information it asks for.
- Pay the application fee your authority sets - see the cost section below.
- Set up compliant systems before you take your first booking - a booking-record system, basic DBS checks for any staff taking bookings or dispatching drivers, and only ever using drivers and vehicles licensed by an authority you're entitled to use.
- Complete a tax check with HMRC when you renew - required for operator licence renewals from 4 April 2022 (GOV.UK, checked 23 August 2026).
What must your firm do once you're licensed?
Holding the licence is the start - the Department for Transport's statutory guidance sets out ongoing duties operators are expected to meet, and licensing authorities build these into their own conditions.
| Duty | What it involves |
|---|---|
| Booking records | Keep a record of every booking invited or accepted, under section 56 of the 1976 Act; DfT's statutory guidance recommends retaining these records for a minimum of 6 months (DfT, published 25 November 2022). |
| Staff checks | Keep a register of everyone who takes bookings or dispatches vehicles, and ensure each has at least a basic DBS check, done annually (DfT, published 25 November 2022). |
| Safeguarding | You can't hand off responsibility for protecting children and vulnerable adults, even if you outsource part of your booking or dispatch function (DfT, published 25 November 2022). |
| Data protection | Booking records contain personal data, so you're also bound by data protection law in how you store and use them. |
DfT's statutory guidance sets a national baseline; your own licensing authority's conditions may go further, so check its exact requirements rather than relying on this table alone.
Can you sub-contract bookings to another area?
Yes - since 1 October 2015, an operator can sub-contract a booking to another operator licensed by a different authority in England or Wales, following changes made by section 11 of the Deregulation Act 2015 (legislation.gov.uk, checked 23 August 2026).
Before that change, operators generally had to keep bookings within drivers and vehicles licensed by their own authority; now, a licensed operator can pass a job to another licensed operator elsewhere, as long as that second operator is properly licensed for the district where the booking is fulfilled.
This flexibility doesn't extend to handing a job straight to a driver licensed by a different authority without going through a properly licensed operator in that area - the sub-contracting has to run operator-to-operator.
What does a private hire operator licence cost?
There's no national fee - each council (and TfL, in London) sets its own operator licence fee, so the honest answer is that your figure depends entirely on where you apply.
That single example illustrates the scale, not a national figure - always check your own council's current published fee before budgeting. The free official route on GOV.UK →
✓ Checked against GOV.UK and Cheshire East Council's published fee, 23 August 2026
On top of the operator licence fee itself, budget separately for your drivers' and vehicles' own licence fees, insurance, and any booking-and-dispatch software or DBS-checking costs your compliance systems need.
Frequently asked questions
Do I need an operator licence if I only drive myself and never take a booking directly?
If every job you do comes through someone else's licensed operator, you may only need a driver licence and a vehicle licence - but the moment your business takes bookings directly from customers, arranges its own jobs, or runs its own booking line or app, you need an operator licence as well.
Can I hold an operator licence from one council but use drivers licensed elsewhere?
Not directly - your operator licence, and the drivers and vehicles you use, generally need to come from the same authority, unless you're properly sub-contracting the booking to another operator licensed in that other area, following the rules introduced by the Deregulation Act 2015.
How long do I have to keep booking records?
The Department for Transport's statutory guidance recommends operators retain booking records for a minimum of 6 months, though your own licensing authority may set a longer requirement in its conditions.
Does a private hire operator licence renew automatically?
No. You must apply to renew before it expires - it lasts a maximum of 5 years - and since 4 April 2022 you must also complete a tax check with HMRC as part of renewing.
What happens if I operate without a licence?
Taking payment for bookings or supplying drivers without holding a valid operator licence is a prosecutable offence; if you're unsure whether your business model needs one, check with your licensing authority before you start taking bookings.
apply for licence is an independent guide and is not affiliated with, endorsed by, or connected to GOV.UK, any local council, Transport for London or any government body. This page is general information, not legal or professional advice - for anything specific to your business, contact your licensing authority directly or a licensing solicitor.