[gambiting]

Yes, that's how it works. If you want to run a restaurant you need to obtain a certificate saying that it's safe and hygienic, if you want to run a theatre you need to make sure that emergency exits are clearly marked and that there is sufficient ventilation, and also, if you want to transport people for money you need to have a certificate that says that 1) you are able to physically 2) your vehicle is in good enough condition. For all of those things you need the "higher authority" and it's a good thing.