Chapter 14
Related Sections
1
INTRODUCTION
2
Categories of SMMEs
3
TYPES OF BUSINESSES
4
Sole trader or sole proprietor (Owner)
5
Partnership
6
Close Corporation (CC)
7
Company
8
Co-operatives
9
REGISTRATIONS AS A NEW EMPLOYER
10
Summary of the statutory registrations required for employers
11
Employee’s tax – PAYE
12
Unemployment benefits (UIF)
13
Skills Development Fund and Levy
14
Compensation for Occupational Injuries and Diseases (COIDA)
15
Occupational Health and Safety
16
Formalising the employment relationship with employees
17
INCOME TAX
18
Provisional tax
19
How to register as a taxpayer
20
What happens if you do not pay tax or pay late?
21
SARS eFiling
22
VALUE-ADDED TAX (VAT)
23
VAT vendors
24
Who should register as a VAT vendor?
25
How do you register for VAT?
26
How does VAT work?
27
BUSINESS LICENCES
28
What types of business need a licence?
29
How to get a business licence
30
Does the business licence have to be renewed?
31
What happens if a person sells food and does not get a business licence?
32
Informal trading and hawking
33
EXPORTING AND IMPORTING
34
Permits for exporting and importing
35
Goods that are subject to export and import controls
36
Registering as an exporter and importer
37
ADMINISTRATION SKILLS FOR SMALL BUSINESSES
38
Bookkeeping
39
Payroll and personnel records
40
Other important records
41
Filing
42
Filling in forms
43
SUPPORT FOR SMMEs
44
The Small Enterprise Development Finance Agency (SEDFA)
45
Thusong Service Centres
46
National Small Business Advisory Body
47
PROBLEMS
48
Problem 1: What type of business to start
49
Problem 2: Starting a business which needs a business licence
50
Problem 3: Is being a VAT vendor worth it?
51
Problem 4: Drawing up a business plan
52
MODEL LETTER
53
Model letter of appointment
54
CHECKLISTS
55
Checklist: When starting a business
56
Checklist: Business Licence Types

How to get a business licence

Every province has its own Liquor Act and Liquor Board. You must apply to the provincial liquor board for a liquor licence if you want to sell alcohol. The procedure is complicated, and getting an attorney to help you is best.

Municipalities licence street traders and other businesses that deal with food and social events according to their own by-laws. If you are the owner of a business that sells food that can go off, a restaurant or a place of entertainment, you need a license from your municipality to certify that your premises are safe and meet all standards for hygiene and fires. (See Problem 2: Starting a business which needs a business licence)

Different government departments will contact the owner, to make an appointment to visit the business. These inspectors may visit the business:

  • Town planner, to see if the business is in an area that is zoned for business purposes
  • Health inspector, to see that the business follows all the health rules
  • Inspector from the fire department, to see that the business is not a fire hazard
  • Mechanical engineer

The inspectors must visit the business within 35 days after you have handed in the form. Your local municipality can give you guidelines for the things inspectors look at. The inspectors will visit the business and tell the municipality what they have found out about the business.

If the inspectors want the owner to make some changes to the business premises, the owner must apply to the local municipality for another 14 days. If the owner does not apply for another 14 days and the work on the premises is not finished by 30 days after giving in the form, the owner will have to apply again and the inspectors will have to come again.

The local municipality will give the person the licence allowing them to do business. The council can give the licence with specific conditions.

In most municipalities, street traders also need a street trader license to trade in public places.

EXAMPLE

Nolita applied for a licence to sell fruit and vegetables as a hawker.

The council gave her the licence, but on condition that she only trade between 8 a.m. and 6 p.m. If Nolita sells fruit and vegetables before 8 a.m. or after 6 p.m., the council can take away her licence.

The council will not give a licence if:

  • The place where the owner does business is unsafe or unhygienic
  • The person is not considered to be a suitable person to open a business, because they have a criminal conviction, or has a reputation for cheating people in the community