The steps that are the same almost everywhere
- 1
Choose the model
Street-hail taxi (ranks, meter, regulated fares) or pre-booked private hire, livery or limo work. The model decides which licences you need.
- 2
Find your licensing authority
In England and Wales it is the local council, or Transport for London in London; in most of the US it is the city or county; elsewhere usually a state or national transport regulator.[1]
- 3
Register the business
Company or sole trader registration and tax registration, in the name the licences will be issued to.
- 4
License the business itself
An operator, base or booking-service licence is what lets you take bookings and send drivers. In England and Wales taking private hire bookings without one is an offence.[1]
- 5
License and insure each vehicle
Vehicle licences come with inspections and rules on age, size and signage, and you need insurance for hire and reward, not ordinary car insurance.
- 6
License or check each driver
Background checks, medicals and local tests are usual; in England and Wales a driver licence is usually issued for 3 years.[2]
- 7
Set prices and booking channels
Metered taxis use the tariff the authority sets; pre-booked work is priced by you. Decide how people book: phone, website, app, accounts.
- 8
Set up dispatch and records
Many authorities require you to keep a record of every booking. Dispatch software keeps those records, sends jobs to drivers and tracks the fleet.
Why do the rules change so much from place to place?
Taxi licensing is local almost everywhere. In England and Wales each council sets its own fees, tests and vehicle rules, and the driver, vehicle and operator licences must all come from the same authority, so two neighbouring towns can differ.[1][2]
For the whole journey from one car to a fleet, including cars, bookings and software, read how to start a taxi business. The licensing guides below cover what changes by place.
Taxi or private hire: which business should you start?
A taxi can be hailed in the street or hired from a rank, but fares are usually set by the authority and plates can be limited. Private hire, livery and limo work must be pre-booked, which suits airport runs, accounts and app bookings, and you set your own prices.[1]
In the UK the full comparison is in hackney carriage vs private hire.
How big is the market you are entering?
In England the Department for Transport counted 52,300 licensed taxis and 290,000 licensed private hire vehicles on 1 April 2026, with private hire up 13% and taxis down 7% compared with 2024. Most growth is in pre-booked work.[3]
What does it cost to start?
The fixed costs are licence fees, the vehicle, insurance and a booking setup; the licensing guides below link each authority's official fee page. The start-up cost guide lists every line and lets you work it out with your own numbers instead of an average.
Where is the licensing guide for my area?
Pick the guide for the authority that will license you; each one lists its numbers, its fees where published and how its rules differ.
- England: Birmingham, Leeds, Luton, Manchester, Newcastle, Norwich, Oxford, Rochdale, Walsall, Wirral, Wolverhampton, York
- London: Transport for London
- Scotland: Edinburgh
- Northern Ireland: taxi licensing in Northern Ireland
- United States: New York City and the TLC base licence
- Anywhere: taxi business licence by country
All guides in this section
Ways to start
United Kingdom and Ireland
- How to start a taxi business in the UKWhich authority licenses you in each UK nation, the licences in order, and the 2026 market.
- How to start a taxi business in ScotlandCouncil licensing under the 1982 Act, booking offices, Edinburgh fees and 2025 numbers.
- How to start a taxi business in IrelandNational SPSV licensing under the Taxi Regulation Act 2013: vehicles, drivers, dispatch operators.
Australia and Canada
- How to start a taxi business in AustraliaState regulators: NSW authorisation and levy, Queensland booked hire licences and fees.
- How to start a taxi business in QueenslandBooked hire service licences, booking entity authorisation and TMR's 2026 fees.
- How to start a taxi business in OntarioCity licensing, Toronto's licence types under Chapter 546, and first questions to ask.
Europe
Middle East and Africa
Frequently asked questions
Do I need a licence to run a taxi company?
Yes, almost everywhere. Besides vehicle and driver licences, the business that takes bookings usually needs its own operator, base or booking-service licence; in England and Wales taking private hire bookings without one can be prosecuted.
Can I start a taxi business with one car?
Yes. Many firms start as one licensed owner-driver, either working for an existing operator or with their own operator licence. See the one-car guide for the route and the numbers to check.
Can I run a taxi business from home?
Possibly, for pre-booked work, but the licensing authority decides whether the address is suitable; Luton, for example, requires planning permission for premises used as a booking office. Check your authority's operator conditions before you apply.
How long does it take to get licensed?
In England and Wales the enhanced DBS check alone usually takes around 8 weeks, and medicals, tests and vehicle inspections are booked alongside it. The licensing guides list each step.
Sources
Fees and rules change. Each source is the official page we read, with the date we read it; check it before you apply or pay.
- [1] GOV.UK: Operator licences for private hire vehicles (read 2 Nov 2026)
- [2] GOV.UK: Driver licences for taxis and private hire vehicles (read 2 Nov 2026)
- [3] Department for Transport: Taxi and private hire vehicle statistics, England: 2026 (published 13 August 2026) (read 2 Nov 2026)
- [4] NYC Taxi & Limousine Commission (read 2 Nov 2026)