If you open a business that requires a license, you may not, unless otherwise indicated, begin trading before a license has been issued. Trading without a valid license is a punishable offense. Licensing is governed by the Business Act No. 71 of 1991, which is national law. Schedule 1 of the Business Act No 71 of 1991 lists the businesses which need a license.

Only applies to Drakenstein Municipality which includes the following areas: Paarl, Wellington, Saron, Hermon and Gouda.

Which businesses need to apply for a License?

• Food Provision needs a license to sell or supply meals, take-aways or perishable food.
• Health and Entertainment Facilities need a license for:
• Turkish baths, saunas and health baths;
• Massage or infra-red treatments;
• Male and Female escorts;
• Three or more slot machines and electronic games;
• Three or more snooker or billiard tables;
• Nightclubs and discotheques, where live or loud music is played;
• Adult premises.
• Hawkers: If you are a hawker selling food and meals, which you take from place to place or sell from a vehicle, you need a license
• Other types of Licensing Bodies for Licenses (Registrar of Companies - Contact CIPRO for registration of the following type of companies - Address: Block F, DTI Campus, Entfutkweni, 77 Meintjies Street, Sunnyside, Pretoria):
• Close Corporation
• Company
• Copyright
• Designs
• Patents
• Liquor Licenses: To apply for a liquor license, contact the Liquor Officer at your nearest Police Station or the Liquor Board.
  Address : The Liquor Board, 6th Floor, Waldorf Building, 80 St George's Mall, PO Box 979, Cape Town.
  Tel. 021 - 483 3091 & Fax 021 - 483 5066
• Music Rights : You also have to apply to the South African Music Rights Organisation (SAMRO) to play any kind of music.
  Address : 73 Juta Street, cnr. De Beer, Braamfontein
  Tel. 011 - 489 5000 & Fax 011 - 403 1934

Steps on how to Apply for a Business License

Step 1: You need to complete a business license application forms (L1) which is available from the Civic Centre, Bergriver Boulevard, Paarl, as well at the Municipal Offices, 3rd Floor, Paarl Civic Centre.

For enquiries contact:

Step 2: The application must be completed and submitted to the License Officer.

• The Town Planning Department will assist you to establish whether there are business rights on the property and whether the zoning rights comply with the Scheme Regulations.
• If your application complies with the aforementioned requirements, the application process can proceed.

Step 3: Payment of Fee

• An application fee (annually increased as per Council's tariff structure) is payable at the cashiers for the application of a business license
• A receipt will be issued for the fees paid.

Step 4: Circulation for Comments

• The application is then sent to the relevant Departments for comments and recommendations, which may include : Environmental Health, Planning, Fire Services and Electricity

Step 5: Issuing of License

• Once the comments of all relevant departments have been received, the Department Community Services, Licensing, will issue the license

Other Requirements which may need to be met
If reports received from the relevant departments indicate that other requirements need to be met, the Department of Community Services will send a notice to the applicant. The applicant must comply with the requirements and then arrange a re-inspection with the officer concerned.

License Issued
The license will be issued only once ALL relevant departments have returned a recommendation of approval.

Does the business licence have to be renewed?

Traders do not have to apply for a new licence every year.
They do have to apply for a new licence:

• if they move their business to other premises
• if they sell the business, the new owner will have to apply for a licence

What happens if a person sells food and does not get a business licence?

It is a criminal offence to operate without a licence, when the business has anything to do with:

• making or selling food which can go off
• certain types of health or entertainment activities

The owner could be fined up to R1000 or be given a prison sentence of up to 3 years. It is also a criminal offence to sell alcohol without a liquor licence

Note: A business license or application can not be transferred with a change of ownership. A business license can be withdrawn or suspended if there is a failure to comply with an endorsement.

Working together to create a place of opportunity