How to Obtain a Business License in South Africa

If you are running certain types of activities, you will need to obtain a business license in South Africa. Common examples include the provision of food services or selling alcohol, however, business owners must be licensed in order to perform a wide variety of activities.

Read below to learn more about the business licensing process, the trade license in South Africa, and how our lawyers in South Africa can assist you.

If you require assistance for company formation in South Africa, our team can help you.

Business licenses in South Africa

When they decide to open a company in South Africa investors not only need to follow the proper business registration steps but also to get industry-specific licenses for their company.

Different businesses require different licenses which are issued by the local regulatory agencies for the respective business sector.

If you are operating the following businesses, you will need to obtain a business license in South Africa:

Food business: supplying meals, takeaway/fast-food restaurants and more;
Baths: Turkish baths or saunas;
Massage: relaxation massage, other types of treatments including infra-red ones;
Gambling: in the case of gambling machines or other electronic games;
Clubs: this is a broader category that includes both nightclubs and discotheques (a business license in South Africa is needed by establishments that play loud music);
Entertainment: included in this category are cinemas and theatres, but also other types of establishments.
Others: special licensing regimes also apply to businesses that offer escort services and in other cases.

A business license in South Africa is not transferable and it is valid for the premises for which it was issued. If the business relocates it will need to apply for licensing under the new business address. Our South African lawyers can give you more information about the situations in which an issued business license becomes invalid.

Licensing tariffs

Our attorney in South Africa lists some of the fees for business licenses in the city of Johannesburg:

ZAR 570 for a food establishment with fixed premises;
ZAR 185 for a beauty/hairdressing salon;
ZAR 945 for an accommodation establishment;
ZAR 555 for a childcare service license;
ZAR 555 for most business licenses related to keeping live animals (such as poultry or rabbits but also in the case of dog kennels).

Please keep in mind that these fees are set by the Environmental Health Services agency of the City of Johannesburg, and they can be subject to change. The list above is not exhaustive, and more types of activities require a corresponding business license in South Africa. Our team of experts in company incorporation in South Africa can also help you open a company.

The trade license in South Africa

Companies that engage in trading activities need to apply for a license that will be suitable for commercial purposes. They cannot engage in trading activities before they obtain this license.

A trade license in South Africa is relevant for companies that will engage in trade activities such as those related to import and export, but also for other types of trade.

Companies have to be registered as an importer and/or exporter in South Africa and this is done by registering with the authorities and then, for goods subject to import control, applying for an import permit with the International Trade Administration Commission, or ITAC.

Trading without a valid license is punishable with a fine. Our lawyers in South Africa can give you more details about the conditions for doing business as well as the possible fines investors expose themselves to when not properly trading with a valid license.

Our services

We are a full-service law firm offering a wide range of solutions for both companies and individuals. You can rely on us for matters concerning business licensing but also if you are interested in immigration to South Africa, obtaining residency in South Africa, or permanent residence in South Africa.

Contact us for more information about our services.