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Regulations Governing the Licensing of Businesses

According to Section 3 of the Businesses Act, 1991 (Act 71 0f 1991) no person shall, with effect from the date specified in a notice under subsection (1) in respect of a specific licensing authority, carry on any business in the area of that licensing authority :

  1. unless, in the case of a business referred to in Item 1(1) or 2 of Schedule 1, he is the holder of an apposite licence issued to him by the licensing authority in respect of the business premises concerned;
  2. unless, in the case of a business referred to in Item 3 (1) of Schedule 1, he is the holder of a hawker's licence issued to him by the licensing authority;
  3. contrary to a condition.
A licensing authority shall, according to Section 4 of the Businesses Act, 1991 (Act 71 0f 1991) subject to the provisions of subsection (6), issue a licence which is properly applied for unless :
  1. in the case of a business referred to in Item 1 (1) or 2 of Schedule 1, the business premises do not comply with a requirement relating to town planning or the safety or health of the public of any law which applies to those premises;
  2. in the case of a business referred to in Item 2 of Schedule 1. the authority is satisfied that: -
    1. the applicant, whether or not he is or will be in actual and control of the business: or
    2. if another person is or will be so in control, that other person, is not a suitable person to carry on the business, whether by reason of his character, having regard to any conviction recorded against him, his previous conduct or for any other reason;
  3. in the case of an application for a hawker's licence, such a licence of which the applicant concerned was the holder, was withdrawn under subsection (9) at any time during the preceding 12 months.
SCHEDULE 1
Businesses in respect of which a licence is required
 
(Section 2)

Item 1: Sale or supply of meals or perishable foodstuffs

  1. The carrying on of business by the sale or supply to consumers of -
    1. any foodstuff in the form of meals for consumption on or off the business premises; or
    2. any perishable foodstuff.
  2. For the purposes of subitem (1) "perishable foodstuff " means any foodstuff or category of foodstuffs declared by the Minister by notice in the Gazette to be a perishable foodstuff for the purposes of this item
Item 2: Provision of certain types of health facilities or entertainment

The carrying on of business by
  1. providing turkish baths, saunas or other health baths;
  2. providing massage or infra-red treatment;
  3. making the services of an escort, whether male or female, available to any other person;
  4. keeping three or more mechanical, electronic or electrical contrivances, instruments, apparatus or devices which are designed or used for the purpose of the playing of any game or for the purpose of recreation or amusement, and the operation of which involves
Item 3: Hawking in meals or perishable foodstuffs

  1. The carrying on of business, whether as principal, employee or agent, by selling any foodstuff in the form of meals or any perishable foodstuff -
    1. which is conveyed from place to place, whether by vehicle or otherwise;
    2. on a public road or at any other place accessible to the public; or
    3. in, on or from a movable structure or stationary vehicle, unless the business is covered by a licence for a business referred to in Item 1 of this Schedule.
  2. For the purposes of subitem (1) "perishable foodstuff " means any foodstuff or category of foodstuffs declared under Item 1 (2) of this Schedule to be a perishable foodstuff
SCHEDULE 2
Businesses excluded from businesses referred to in Schedule 1

  1. A business which is carried on by the State or a local authority.
  2. A business which is carried on by a charitable, religious, educational, cultural or agricultural association, organization or institution of a public nature, if all profits derived from the business are devoted entirely to the purposes of that or any other such association, organization or institution.
  3. In the case of a business referred to in Item 1 (1) of Schedule 1. such a business which is carried on -
    1. by a social, sports or recreation club which is a non-proprietary club and restricts the business to the sale or supply to its members and their guests of foodstuffs for consumption on or in the business premises;
    2. by or on behalf of an employer for an employee as such of the employer.
  4. A business referred to in Item 1 (1) (a) of Schedule 1, if the meals concerned are prepared and sold in a private dwelling.
  5. In the case of a business referred to in Item 1 (1) (b) of Schedule 1, the sale of a perishable foodstuff referred to in that item, by a person who belongs to a category of persons which the Minister, in the relevant notice under Item 1 (2) of that Schedule, has exempted from the provisions of Section 2 (3) of this Act, read with the said Item 1 (1) (b), in relation to the perishable foodstuff concerned
Application Procedure for Businesses Licenses

The Administrator has, in terms of Section 6(1) of the Businesses Act, 1991 (Act 71 of 1991), made the following regulations as published under Provincial Notice 786 of 15 November 1991

Application for licences, duplicate licences and amendments

3 (1) Application for a licence or a duplicate licence or the amendment of an existing licence shall
be made to the licensing authority -
  1. in whose area the applicant's business premises are situated, or
  2. in respect of a business contemplated by ltem 3 of Schedule 1 of the Act in whose area the applicant carries on business or intends carrying on business.
(2) Application for a licence shall be made essentially on the approptiate application form
accompanied by the prescribed application fee.
(3) A licence holder who intends to cease carrying on business from any business premises and
commences carrying on such business from other premises which are situated within the
area of the same licensing authority shall 30 (thirty) days before doing so make application
to the licensing authority for an apposite licence in respect of such other premises.

Application Fees

4. Every application for a licence for a business contemplated in Items 1 and 2 of Schedule 1 of the Act shall be accompanied by an amount of R25 and every application for a licence for a business contemplated in Item 3 of Schedule 1 of the Act shall be accompanied by an amount of R10, but the issue of a duplicate licence or the amendment of an existing licence shall be free of charge.

Consideration of an application

5 (1) On receipt of an application in terms of regulation 3 the licensing authority may, subject to Section 2(4), (5) and  (7) of the Act, obtain a report in respect of the business premises, the applicant or the person who will be in actual and effective control of the business.
(2) A licensing authority shall, within a period of twenty-one days after the receipt of an application, or within such extended period as may be agreed upon between the licensing authority and the applicant concerned, either grant such application or refuse to grant it and inform the applicant in writing of its decision and his right of appeal in terms of Section 3 of the Act'

Change of ownership of or control over licensed businesses

9 (1) Whenever there is a change in the ownership of a business referred to in Item 1, 2 or 3 of Schedule 1 to the Act, the licence issued in respect thereof shall lapse and the new owner shall submit an application for an apposite licence.

Offences and penalties

17. (1) Any person who
  1. contravenes or fails to comply with any provisions of these regulations or any condition imposed in terms thereof or thereunder;
  2. threatens, resists, hinders or obstructs any inspector or otficer in the exercise of his powers or the performance of his duties or functions in terms of or under these regulations;
  3. in an application for a licence makes any false statement or any statement which is calculated to mislead;
  4. intentionally gives false or misleading information to a licensing authority or an inspector;
  5. falsely holds himself out to be an inspector, or
  6. alters a licence without the approval of the licensing authority, shall be guilty of an offence and on conviction liable to a fine not exceeding R1 000 or imprisonment for a period not exceeding three months, subject to the provisions of the Adjustment of Fines Act, 1991 (Act 101 of 1991).

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