The facility, based at NSA House, in Cornwall Road, Smethwick, has been served with a notice by Sandwell Council after ignored previous warnings about events.
The notice, called a Direction under Regulation 5 of The Health Protection Regulations, bans the company from holding weddings, funerals wakes, parties, musical performances, christenings and other gatherings.
Sandwell Police had visited the premises a number of times before the action was taken.
If the venue ignores this direction, it could face an unlimited fine and face court action.
Sandwell Council will review the decision on a weekly basis where it has the power to revoke the decision.
The organiser has also been told to advertise cancellation of any future events there which had already been booked.
Sandwell Council's interim leader, Councillor Maria Crompton, said: "Nobody wants to see Sandwell business activities shut down and obviously the council would prefer to be supporting them to operate legally - but this is particularly irresponsible given the very high infection rates in the Smethwick area.
"This action is a clear signal to all our businesses that we will not hesitate to use all powers available to enforce the rules around safety and public health and I urge them all to heed the warning."
Sandwell commander, chief superintendent Ian Green, said: "The council and the police have always co-operated very closely, however since the pandemic hit, we have seen the partnership really shift gear and move rapidly onto a new level of joint working.
"We are all dealing with new pressures and adapting to new challenges every day and I am proud to see our two organisations facing these with a united front.
"If firms refuse to take responsibility and are putting our community at risk we have no choice."