ALL spaza shops must register with their municipalities within 21 days. President Cyril Ramaphosa warned that any shop not registered by then would be shut down.
Ramaphosa was addressing the nation on Friday evening, 15 November, on the government’s response to the recurring instances of foodborne illnesses that have claimed the lives of many children across Mzansi.
The president said 890 reported incidents of food-borne illnesses have occurred across all provinces since September 2024.
He stated that Gauteng and KZN have been the most affected, with Limpopo, Free State, and Mpumalanga recording dozens of incidents. “Over the last few weeks alone, foodborne illnesses have claimed the lives of at least 22 of our nation’s children,” he said.
He added that investigations do not suggest any deliberate campaign to poison children in the country. “There is no evidence that the problem is confined to only spaza shops owned by foreign nationals. These products are just as likely to be sold in shops owned by South Africans,” he said.
To address this problem, Ramaphosa said that following a special meeting with the Cabinet, they have decided to implement several interventions, starting with removing hazardous pesticides from the streets.
He added that all spaza shops and other food handling facilities must register with the municipalities in which they operate within 21 days from 15 November. Any shop that is not registered within 21 days and does not meet all health standards and requirements will be closed.
To ensure compliance, the President ordered all spaza shops and food-handling facilities to register with their respective municipalities within 21 days. However, the deadline for registering spaza shops and other food-handling shops has been extended to 28 February 2025.
Spaza Shop Permits
- Small business owners can follow these guidelines to ensure that they are compliant with government regulations:
- Registration for trading permits for spaza shop owners and vendors is done in municipality offices or designated sites that the municipalities will communicate to residents.
- All spaza shop owners and vendors must register with their respective municipalities from 15 November to 13 December 2024. However, the government has extended the deadline for registering spaza shops and other food-handling shops to 28 February 2025.
- Application forms for registration or permits to conduct business can be accessed physically at the municipal offices or on the municipality website.
- Only the municipal manager or a delegated official within a municipality may receive the completed application form.
- The completed permit application should contain the business owner's full name, surname, gender, and disability status.
- Other details that must be included in the application for a trading permit are:
- the identity number of the business owner;
- the physical and postal address of the business concerned;
- the location where the business will be operated;
- the description of the goods or services that the business will be selling or providing to the community;
- the citizenship status of the applicants, and
- The passport number, section 22 asylum seeker permit, section 24 refugee permit, and a valid visa allowing foreign nationals to be in the Republic to work or conduct business.
- The applicant must provide an affidavit stating that he/she is not engaged in the trade of illegal goods, as defined in this by-law and that his/her business will operate according to the applicable norms and standards.
- The municipality may collaborate with law enforcement agencies to conduct background checks on applicants to verify the legality of their business activities.
- After the application has satisfied all the conditions stated by the municipality, the business owner will be issued a registration card or permit, which must be displayed and available for inspection.
Reporting illegal business practices
Municipalities are also expected to communicate to residents a complaints procedure that residents and community members can use to report illegal business practices by the business establishment. This complaints procedure will also include details about the appeals process for the application process. Under the Immigration Act of 2002, it is a criminal offence to assist or enable an illegal foreigner to conduct business in the Republic of South Africa or to assist an illicit foreigner in obtaining a licence to conduct any business.
Guide to registering Spaza shops.
Small business owners can follow these guidelines to ensure that they are compliant with government regulations:
- Registration for trading permits for spaza shop owners and vendors is done in municipality offices or designated sites where the municipalities will communicate with residents.
- All spaza shop owners and vendors must register with their respective municipalities from 15 November to 13 December 2024.
- Application forms for registration or permits to conduct business can be accessed physically at the municipal offices or on the municipality website.
- Only the municipal manager or a delegated official within a municipality may receive the completed application form.
- The completed permit application should contain the business owner's full name, surname, gender, and disability status.
- Other details that must be included in the application for a trading permit are:
- the identity number of the business owner;
- the physical and postal address of the business concerned;
- the location where the business will be operated;
- the description of the goods or services that the business will be selling or providing to the community;
- the citizenship status of the applicants and
- The passport number, section 22 asylum seeker permit, section 24 refugee permit, and a valid visa allowing foreign nationals to be in the Republic to work or conduct business.
- The applicant must provide an affidavit stating that he/she is not engaged in the trade of illegal goods, as defined in this by-law and that his/her business will operate according to the applicable norms and standards.
The municipality may collaborate with law enforcement agencies to conduct background checks on applicants to verify the legality of their business activities.
After the application has satisfied all the conditions stated by the municipality, the business owner will be issued a registration card or permit, which must be displayed and available for inspection.
Spaza shops, also known as informal convenience stores, play a vital role in South Africa's local township economy. These shops provide accessible goods and services within communities and serve as a primary source of livelihood for many entrepreneurs. Registering a spaza shop legitimizes your business and opens up financial and developmental support opportunities. Here’s a step-by-step guide to help you register and operate a compliant spaza shop in South Africa.
1. Understand the Nature of a Spaza Shop
Before registering, defining your spaza shop's purpose and structure is essential. Spaza shops typically operate in residential areas and offer groceries, household goods, and other essentials. While historically informal, formal registration can enhance your business's legitimacy and sustainability.
2. Business Registration
To operate legally, you need to register your spaza shop with the Companies and Intellectual Property Commission (CIPC). Here are the steps:
- Choose a Business Structure: Decide whether to register as a sole proprietor, partnership, or private company.
- CIPC Registration: Visit the CIPC website (www.cipc.co.za) to register online or through an agent. You’ll need an ID document, proof of address, and a unique business name.
- Registration Fees: Depending on the structure, fees range from R175 for private companies to R50 for name reservations.
3. Obtain Necessary Licenses and Permits
Every business in South Africa requires specific permits to operate legally. For spaza shops:
- Business License: Apply through your local municipality. This license authorizes your shop to operate in a specific area.
- Trading Permit: In some municipalities, you’ll need a trading permit for retail activities.
- Certificate of Acceptability: If you sell prepared or perishable food, obtain this certificate from your local health department. Inspectors will visit your shop to ensure compliance with food safety regulations.
4. Register for Taxation
Tax compliance is crucial for any business. Registering with the South African Revenue Service (SARS) ensures you fulfil your tax obligations:
- Income Tax Registration: SARS will assign your business an income tax reference number.
- VAT Registration: If your annual turnover exceeds R1 million, you must register for Value-Added Tax (VAT).
- Tax Clearance Certificate: A tax clearance certificate is necessary for accessing specific financial support programs.
5. Open a Business Bank Account
Open a dedicated business bank account to separate your personal and business finances. This helps maintain accurate financial records and simplifies tax compliance. Most banks in South Africa offer business accounts tailored to small enterprises.
6. Comply with Local Zoning and Bylaws
Local municipalities enforce zoning laws and bylaws to regulate businesses. Spaza shops must adhere to the following:
- Operate within designated residential zones.
- Limit the shop size to no more than 30 square meters.
- Abide by restrictions on operating hours and noise levels.
- Check with your municipality for specific requirements in your area.
7. Participate in Government Support Programs
The South African government provides financial and developmental support to small businesses through initiatives like the Township and Rural Entrepreneurship Programme (TREP). Eligibility criteria include:
- 100% South African ownership.
- Operation within a township or rural area.
- A formal business registration and tax clearance certificate.
TREP offers funding, mentorship, and access to markets, which can significantly benefit your spaza shop.
8. Create a Business Plan
Although not mandatory for registration, a well-thought-out business plan is vital for success. Your plan should outline:
- Your target market and competition.
- The range of products or services you’ll offer.
- Pricing and marketing strategies.
- Financial projections and growth plans.
9. Benefits of Registering Your Spaza Shop
By formalizing your business, you gain access to:
- Legal protection and compliance.
- Financial support from banks and government programs.
- Credibility and trust among customers and suppliers.
- Opportunities to expand into other markets.
10. Conclusion
Registering a spaza shop in South Africa is more than a legal formality—it’s a step toward building a sustainable and thriving business. By following the outlined steps, you can ensure your shop operates within the law and benefits from various support systems available to entrepreneurs. Proper planning and compliance can make your spaza shop a cornerstone of your community and a successful venture.
