Business / Trade License 

WHAT IS A BUSINESS LICENSE?

A business license launches a business in a specified geographical area. Should the license be approved it would mean that the business complies with the building regulations and public health and safety requirements. Should a business be required to have one, and commences to trade without it, it will result in a punishable offence.

HOW TO KNOW IF YOUR BUSINESS IS REQUIRED TO HAVE A TRADE LICENSE?

Most new businesses are not required to have one, although it is required for certain types of businesses according to the Business Act 71 of 1991, for example: health clinics, spas, cinemas, arcades, any businesses that have vending / slot machines, places that serve food, etcetera.

WHAT ARE THE COSTS RELATED TO A BUSINESS LICENSE?

The costs will vary between the different provinces, it will be available on the governmental website, but these amounts are not frequently updated. The best option would be to call your local municipality or the local municipality that has jurisdiction over the area where the business is to be situated, should this be in a different province.

HOW LONG IS A BUSINESS LICENSE VALID?

A business license cannot be transferred should it move from one premises to another, as well as if ownership is transferred, therefore when buying an existing business, one must apply for your own business license. The license can also be suspended or withdrawn, should the business not comply with the necessary requirements. If the business license is granted, the state is entitled to inspect the business from time to time to ensure the standards are maintained.

WHAT DO YOU NEED TO APPLY FOR A BUSINESS LICENSE? (CAPE TOWN)

• • • The application form must be completed and submitted together with the required documentation at the relevant licensing department.

    • One must apply at the Environmental Health Office in the City of Cape Town.

    • The following documentation is required:

      • • A valid ID as well as a copy thereof of each shareholder or member – a passport and copy thereof should the member be a foreign national.

        • Should the business license be for a specific type of entertainment or health facility, a certified South African Police clearance must also be provided. This can be obtained from your local police station. Should it be for a foreign national, it may be required that the police clearance be from the country of origin.

        • Prior to the application being approved, the required Land-use Planning clearances and ‘Certificate of Occupancy clearances’, that are issued by the Building Development Directorate, must be obtained.

        • As soon as all the required documents have been supplied to the Business Licensing Official, a cash payment bust be made at the nearest City of Cape Town cash office.

        • Once this amount has been paid, the receipt must be submitted to the Licensing Official.

You will then be contacted to conduct a site inspection and the final approval of the business license will be decided.

For any other enquiries you can contact your city’s business license department.