Can you sell your 0-licence?
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In the old days of A, B and C licences a licence had a value. Licences could be transferred and regularly were—at a price. Now anyone who wishes to buy a business with an Operator's Licence must apply for a new licence: an 0-licence cannot be transferred from its holder to a_purchaser. However, a transfer can, in effect, take place if the holder of an 0-licence is a company. If a purchaser wishes to buy a limited company which holds an 0-licence the purchaser can do so by buying the shares in the company. The 0-licence, in effect, stays in the company.
You might expect a provision in the regulations preventing change in shareholding in a company; surprisingly, however, the only provision in the 0-licence regulations is that the Licensing Authority must be notified by the company if there is a change in shareholding which causes a change in control of the company. In reality, therefore, there is goodwill in an 0-licence if the holder is a limited company. On a change in control the LA will only want to ensure that the company continues to satisfy the requirements of fitness and repute. In practice, that is a less stringent investigation than is carried out on an application for a new licence.
Holders of 0-licences who wish to maximise the goodwill benefit of that licence may care to consider with their professional advisers whether they should set up a limited company. II by Stephen Kirkbright