What Is a Business License in South Africa

Your business license application depends on the location of your business. You must then apply to a municipal council, a local municipal council or a district consultant, depending on your region. “The Firm has decided that all licences and business permits that expired between March 2020 and June 2021 will remain valid until December 31, 2022. Step 5: Issuance of the licence Once feedback from all relevant services has been received, the Department of Community Services, Licences, will issue the licence. Depending on the type of business, you may need to meet the following requirements: License issuedThe license will not be issued until ALL relevant departments have made a recommendation for approval. Does the business licence need to be renewed? Dealers do not have to apply for a new licence every year. They must apply for a new license: if they move their business to other premises, when they sell the business, the new owner must apply for a license. A commercial or commercial license is essentially a license that allows you to start and operate a specific business in a specific territory or premises. A business license not only allows you to trade, but also monitors that your business and its place of establishment meet all the necessary requirements, from building regulations to public safety to health requirements. According to the Business Act, certain companies in the above list are excluded from the need for a business license. These include: If you`re starting a business, you may need to apply for a business license before you can start trading. You will also need the identification documents or passports and visa certificates of all the members and shareholders involved, including the manager responsible for the company. Regulations usually vary from region to region, to find out exactly what you need to do for your business, contact your local community and find out how to stick to it.

NB: Applicants who wish to do business in South Africa as part of a spousal or partner relationship, please click here. Small businesses continue to suffer from South Africa`s adjusted Level 4 lockdown, but President Cyril Ramaphosa has created some relief by extending the validity of the business license until the end of December 2022 – here`s what you need to know. The investment amount can be immediately transferred to a capital contribution of R500,000 and the remaining balance in the country and invested in the company over a period of 12 months. Once you have applied for licenses from these two organizations, you can apply for music rights from the South African Music Rights Organisation (SAMRO). You can contact them at the following address: To apply for your business liquor license, you must reside in South Africa, have no criminal record or be insolvent. If you are not always present on your premises, a manager must be appointed to supervise the company in your absence. Intergate Immigration is able to help you with all aspects of creating a business visa application. Our service starts with a free and non-binding consultation to determine your needs and suitability. “New commercial licences or authorisations issued from 1. Are also valid until December 31, 2022 and no royalties will be due,” Ramaphosa said. If your business plans to sell liquor, you will need to apply for a liquor license.

You can contact the liquor officer at your nearest police station or contact the Liquor Control Board. Applicants must first apply for a temporary stay with the business visa. In most cases, this can be done in your country of residence before you arrive in South Africa. After receipt of the temporary stay, a permanent residence permit (establishment permit) can then be applied for. The preparation of the application can take from 4 to 6 weeks, as the application to the department requires certain information in support of the South African business visa and these preparations must be completed before submission. If your company is involved in the provision of food, you must have a “certificate of acceptance”. Until you have the required certificate, no one is allowed to handle food on your premises. If it is determined that you are preparing and selling food without the certificate, you could be fined.

Step 2: The application must be completed and submitted to the licensing officer. The planning department will help you determine if there are commercial rights to the property and if the development rights comply with the plan by-law. If your application meets the above requirements, the application process may continue. You can only apply for your liquor license on the first Friday of each month. This data will be announced in the Official Journal and if you miss any of these dates, the submission of your license will be delayed by one month. Your local community takes care of business licenses and you can contact them for more details on the approval procedures and the different health and safety regulations required for different types of businesses. What happens if a person sells food and doesn`t get a business license? It is a criminal offence to work without a license if the business has something to do with the production or sale of food that may interfere with certain types of health or entertainment activities. The owner could face a fine of up to R1000 or a prison sentence of up to 3 years. The sale of liquor without a liquor licence is also a criminal offence. If you open a business that requires a license unless otherwise stated, you cannot start trading until a license has been issued.

Trading without a valid license is punishable. Licensing is governed by the National Enterprise Act No. 71 of 1991. Schedule 1 of the Enterprise Act No. 71 of 1991 lists the companies that require a licence. In addition to business registration, some companies must obtain a business licence within the meaning of the Companies Act. South African law states that all companies must have a valid business license before negotiating. Under article 1 of the Enterprise Law 71 of 1991, companies that require business licenses include: If this is the case and the company is in one of the following sectors, a capital exemption may be requested. This would mean a reduction in the amount of investment required. The Business Act 71 of 1991 regulates companies that require a business license. While not all businesses need it, there are certain types of companies that may not be traded without a proper business license: Companies that need a licenseIf you run one of the following companies, you need to apply for a license.

For more information, see Schedule 1 of the Enterprise Act 71 of 1991. Note: A license or business application cannot be transferred with a change of ownership. A commercial license can be revoked or suspended if the approval is not respected. You will need to provide a certificate from an auditor confirming that the R5 million cash or capital contribution is available to be invested in the book value of the business. When starting a new business, a comprehensive business plan is also required. Please note that funds including the R5 million investment must come from abroad. The holder of a permit to settle in South Africa (also known as a business visa) is immediately granted permanent residence. Foreigners who plan to invest in the South African economy by setting up a business or investing in an existing business in the country must apply for a business permit. As an applicant, you must invest a mandatory financial capital contribution. With the adjusted Level 4 lockdown extended by 14 days, including some changes, many small businesses continue to suffer financial blows while others face the final shutdown. The above capital requirements may be reduced or repealed with respect to the following types of industries/businesses: For entrepreneurs who wish to start and operate a business in South Africa, we will provide you with information about the South African Establishment Permit in terms of the criteria and application process below.