ALL spaza shops should be registered with their municipalities within 21 days. President Cyril Ramaphosa warned that any spaza 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 there have been 890 reported incidents of food-borne illnesses across all provinces since the beginning of 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 deal with this problem, Ramaphosa said that following a special meeting with the Cabinet, they have decided to make several interventions, starting with taking hazardous pesticides off 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.
o ensure compliance, the President last Friday ordered that all spaza shops and food-handling facilities register with their respective municipalities within 21 days.
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 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.
- Application forms for registration or permits to conduct business can be accessed physically at the municipal offices or on the municipality website.
- The completed application form is to be received only by the municipal manager or a delegated official within a municipality.
- 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 conduct background checks on applicants, in collaboration with law enforcement agencies, 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 that must be always displayed and be 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 opportunities for financial and developmental support. 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, it is essential to define your spaza shop's purpose and structure. Spaza shops typically operate within residential areas, offering 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 fulfill 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 certain financial support programs.
5. Open a Business Bank Account
Open a dedicated business bank account to separate your personal finances from your 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.
