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The phrase "a licensing system" is correct and usable in written English.
You can use it when referring to a framework or process that regulates the granting of licenses for certain activities or products.
Example: "The company implemented a licensing system to ensure compliance with industry standards."
Alternatives: "a permit system" or "a certification framework".
Exact(60)
After that it used a licensing system.
At first sight, a licensing system looks better than no system at all.
There is neither a licensing system nor an age limit on airguns.
(In 1968, the N.R.A. supported a gun-control act that introduced a licensing system for dealers).
Applebaum proposes a licensing system whereby farmers would register to grow poppies.
Entry to the league has been secured via a licensing system with criteria set by the FA.
They want a licensing system that would bar them from participating in sporting shoots on grouse moors.
Now, so many Istrians have embraced the truffle industry that there is a licensing system for hunters.
Instead it has proposed a licensing system in which conditions for the approximately 20 wild animals would be inspected.
It is working with the EU to devise a licensing system for timber exporters which would then be applied globally.
It released national guidelines for microlenders at the end of 2011 and has set up a licensing system.
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Since I tried Ludwig back in 2017, I have been constantly using it in both editing and translation. Ever since, I suggest it to my translators at ProSciEditing.

Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com