What is the difference between a permit and a licence?

The terms are used interchangeably in everyday language, but they describe distinct regulatory instruments. A licence is typically a long-term grant of a right to an individual or entity: a business licence grants the right to trade, a professional licence grants the right to practice, a liquor licence grants the right to sell alcohol. Licences are generally held ongoing and renewed periodically by the licence holder.

A permit is typically a specific, time-limited authorisation for a particular activity or project: a building permit authorises the construction of a specific structure, an event permit authorises a specific event on a specific date, an environmental discharge permit authorises the release of specific materials under specific conditions. Permits expire when the activity is complete or when the time period ends.

The practical overlap: both have renewal dates that need tracking, both are issued by authorities with their own renewal processes, and both can suspend your right to operate if they lapse. Most businesses hold a mix of both.