A business license is a legal authorization that allows individuals or companies to operate a business within a specific jurisdiction. It ensures that the business complies with local regulations, zoning laws, and safety standards. Obtaining a license often involves submitting an application and paying a fee to the relevant government authority. Different types of business licenses exist, depending on the nature of the business and its location. For example, a restaurant may require health permits, while a construction company might need special permits for building. Having the appropriate licenses helps protect consumers and maintains industry standards.