It would depend on the type of license you mean but it confers legitimacy to an act or profession.
The word legitimacy is a noun. It is the quality of being legitimate.
what are the factors that determine legitimacy
legitimacy is act of being legit
The government derives it's legitimacy from the People.
I can test the legitimacy of this statement by looking up the word in the dictionary.
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Poliical legitimacy is the fact that politics is "right" on a certain issue
Legitimacy is a measure of how accurate, true, or appropriate an aspect is under specific circumstances. In a case where truth was a variable "legitimacy" may be used as a measure of whether or not something is true.
France is a democracy, the government derives its legitimacy from the free vote of the people.
Legitimacy is a term used by governments to recognize another regime. A government can obtain legitimacy in several ways. For example, allowing people to participate in government having representatives shows signs of legitimacy. Also, having a codified law that is referred to shows signs of a "higher law" which is another way to obtain legitimacy.
The legitimacy is an issue in the global south because of the need of good governance and accountability.