Before you can legally operate, you need to make sure you have all the necessary licences, permits, and registrations in place. Many new business owners think that once they’ve registered with the Company and Intellectual Property Commission (CIPC), they’re good to go—but that’s just the beginning. A business licence is a legal requirement that allows certain businesses to operate. In South Africa, this is governed by the National Business Act (Act 71 of 1991). The law states that certain businesses must have a licence issued by their local municipality, city council, or relevant authority before they can trade.
The specific licences and permits you need will depend on factors like:
1. Your industry or sector
2. The products or services you offer
3. Your location
4. Your business type
It’s your responsibility as a business owner to find out what licences apply to you, get the necessary approvals, and stay compliant with regulations.
Not all businesses need a trade licence, but certain types must have one before they can start trading. You must apply for a licence if your business:
Offers entertainment (pool halls, arcades, nightclubs, cinemas, etc.)
Sells alcohol (bars, liquor stores, restaurants serving alcohol)
Plays music for customers or employees (bars, restaurants, clubs, shops, etc.)
Sells or prepares perishable food (restaurants, bakeries, butchers, cafes, food trucks, catering businesses, etc.)
Trades food or drinks in a municipal area (street vendors, hawkers, markets, etc.)
Provides health and wellness services (gyms, spas, saunas, massage therapy, etc.)
If you fail to get a required licence, you could face fines, legal action, or even forced closure of your business.Within the above industties, you need extra licensing if you deal with food. Since food can affect public health, businesses that sell or serve food must have:
1
1
A business licence (for selling perishable foods)
A health and safety permit (to ensure food is prepared hygienically)
2
3
A zoning permit (to make sure you’re operating in an approved area)
A Certificate of Acceptability (required for selling any processed food)
4
These apply to restaurants, hotels, catering businesses, food trucks, and even supermarkets or wholesalers selling food and beverages.
🔹 Exceptions: School tuck shops and businesses run by educational institutions don’t need a business licence for selling food.
Hawkers & Street Vendors
If you’re selling food as an informal trader (e.g., fruits, vegetables, or cooked meals), you must apply for a hawker’s trade licence from your municipality. It usually takes two weeks to get approved and must be renewed every year.
How to Apply for a Business Licence
The local municipality where your business is located will handle your business licence application. The process includes:
1️⃣ Submitting an application form to your municipality
2️⃣ Paying a once-off application fee
3️⃣ Providing the required supporting documents (see below)
4️⃣ Getting inspections and approvals from multiple departments
5️⃣ Receiving your licence approval (or making necessary changes if required)
🔹 Important: Your business licence cannot be transferred to a new owner. If you sell your business, the new owner must apply for a new licence. You will need the following documents when you apply
How to Apply for a Business Licence
The local municipality where your business is located will handle your business licence application. The process includes:
1️⃣ Submitting an application form to your municipality
2️⃣ Paying a once-off application fee
3️⃣ Providing the required supporting documents (see below)
4️⃣ Getting inspections and approvals from multiple departments
5️⃣ Receiving your licence approval (or making necessary changes if required)
🔹 Important: Your business licence cannot be transferred to a new owner. If you sell your business, the new owner must apply for a new licence.
When you apply Your local municipality’s Town Planning Department will check if your business location is properly zoned for your activities. Zoning categories include:
🏠 Residential zones – Homes, apartments, group housing
🌳 Open space zones – Parks, cemeteries, sports fields
🏢 Business & commercial zones – Shops, office buildings
🏭 Industrial zones – Factories, warehouses, repair shops
🏛 Government zones – Public buildings, municipal offices
🌾 Agricultural zones – Farms, rural land
⛽ Special use zones – Petrol stations, entertainment venues
If your business doesn’t match the zoning laws, you may need special permission or rezoning approval before operating.
Health & Safety Inspections
Before you get your licence, several departments will inspect your business to ensure compliance:
✔️ Environmental Health – Checks hygiene, waste management, water safety
✔️ Noise & Air Pollution Control – Ensures your business doesn’t cause excessive noise or pollution
✔️ Public Safety – Verifies customer safety measures
✔️ Urban Planning – Ensures your business aligns with municipal development plans
✔️ Fire Department – Checks for fire hazards, emergency exits, and firefighting equipment
Your premises may need modifications before you get final approval.
Licence Approvals & Renewals
Once your application has been approved by all relevant departments, your business licence or trading permit will be issued.
🔹 Renewals: Your licence stays valid until:
✔️ You sell your business
✔️ You change locations
✔️ You change your business activities
If any of these happen, you must apply for a new licence.
