If Uber decides not to appeal, its licence will be formally suspended.
In Sheffield it will be allowed to continue until the appeal deadline on December 18 and after that if it fights the decision, which it says it will.
Sheffield has become the second British city to suspend Uber's licence after the ride-hailing app repeatedly refused to respond to questions about its management.
Uber bosses cite they needed to make a name change on the licence and Sheffield Council made them apply again.
"The legislation does not allow for the transfer of an operator's licence".
Uber's existing licence is in the name of an employee who is leaving the company.
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Uber has applied for a new license under a different individual on October 18, and the council said that it's still being processed.
Uber blamed the council's refusal to let them renew its licence under a new name, and for sending correspondence to a wrong address.
"If the new application can't be resolved by 18 December we will of course submit an appeal so we can continue to serve the people of Sheffield", it said.
This is yet another blow to Uber as it struggles to properly deal with authorities.
In September, Transport for London (TfL) denied Uber's request for a new licence, saying the firm was "not fit and proper" to operate in the capital.
Last month, Uber lost an appeal at an employment tribunal when the court ruled drivers should be treated as workers, entitled to a minimum wage and benefits such as holiday pay, not "independent drivers".
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