It means Glen Valley Tours Ltd, of Station Road, cannot operate its fleet of vehicles carrying eight passengers or less.
However, the company's coach operation, which concerns vehicles with nine or more passenger seats, is unaffected by the council's decision.
The decision was made following a joint operation undertaken by Berwick Borough Council and Northumbria Police on the last day of the school term; and a subsequent licensing investigation into the company's private hire operation.
The company had its licences revoked because, amongst other things, two of its eight vehicles were found to be in an unroadworthy condition; and all four of the drivers who were stopped driving licensed vehicles were unlicensed and uninsured.
A further investigation is continuing, in respect of which prosecutions may be brought before the magistrates' court.
David Wilson, senior licensing officer at Berwick Borough Council said: "Before travelling by taxi or private hire vehicle, members of the public should check that the vehicle is licensed and displaying a valid plate to the rear of the vehicle; and that the driver is licensed and wearing a valid driver's badge. If anyone is not satisfied that a vehicle and/ or driver is properly licensed, they should report the matter to the police or the local council."
If anyone has concerns about a vehicle or driver licensed by Berwick Borough Council, they can report it by e-mail to taxis@berwick-upon-tweed.gov.uk or telephone the licensing section on (01289) 330044.