On-licence describes an establishment where alcohol must be consumed at the point of sale, such as a pub, bar, nightclub or café.
The name derives from the distinction between types of licence which could be granted—a distinction now repealed in England and Wales, and repealed in Scotland in 2009. In England and Wales, the magistrates would formerly grant either an "off" licence permitting the sale of intoxicating liquor for consumption only off the premises, or an "on" licence permitting sale for consumption on the premises—which permitted, to a limited extent, off sales too: many public houses were permitted off sales, to sell sealed alcoholic drinks (e.g., unopened bottles of wine) for consumption elsewhere. A restaurant licence was an on-licence with a restaurant condition attached. Until 2009, in Scotland the types of licence were Hotel, Public House, Restricted Hotel, Restaurant, Entertainment, Off-Sale, and Refreshment licences. In Northern Ireland, there are numerous types of licence.
When restaurants refer to themselves as fully licensed, they have a premises licence permitting only on-sales, often subject to a condition that the alcohol may only be sold with a meal. In this context, fully licensed simply means that the establishment is authorised to serve liquor in addition to beer and wine.
Under the Licensing Act 2003 and the Licensing (Scotland) Act 2005, there is only one type of premises licence, though the conditions placed on each one will determine whether on sales or off sales are permitted—which restores in practice what was once a legal distinction.
The premises licence is granted to a person, and not to the establishment. Before the Licensing Act 2003 came into effect, there was a legal requirement to display the name of the licensee above the entrance to an on-licence location. The sign would typically say "NAME OF LANDLORD licensed for the sale of alcoholic beverages for consumption on the premises". Under the 2003 Act, that requirement has been repealed (though such signs are still often seen). Instead, the premises licence holder must secure that the official summary of the licence (or a certified copy) is prominently displayed at the premises, as well as the name and position of any person nominated as the custodian of the summary premises licence.
Read more about this topic: Alcohol Licensing Laws Of The United Kingdom