Govt plans to register all businesses

This was announced at a press briefing in Cape Town on Wednesday, 20 March 2013, by Trade and Industry Minister Rob Davies.

Government's process to get a handle on businesses started with the Draft Licensing of Business Bill, which was gazetted following Cabinet approval on Monday. It gives the public 30 days in which to comment.

In terms of the Draft Licensing Bill, everybody wanting to do business in South Africa would have to register to do so.

Davies said that the registration of business would give the government a tool to know who was conducting business in different communities, as well as the ability to act against illegal activities. The register would also give authorities the added benefit of being able to act against fronting, Davies said.

Government was also "aware of the proliferation of illegal or semi-illegal activities", which might well have to do with the illegal importation of goods, Davies said.

He warned those involved in fronting, who were managing a business on behalf of those legally prohibited from doing so, that the consequences of their acts would involve criminal prosecution and a 10-year jail term if found guilty.

"We are setting norms and standards - that's the gist of this Bill. Our intention is to create a simple norm nationally. This is for everybody who conducts business activities. Also for all foreigners legally entitled to do business in South Africa."

Licences would be issued by licensing authorities to be established in local or metropolitan municipalities and they would be valid for five years. They would also be renewable.

The mooted business register was not an attempt to raise extra revenue, said Davies.

The process will be simple: those who do not get a reply 30 days after applying to register can assume that they were successful, while those who receive notices will have to respond to them.

Licences may be revoked after a licensing authority has received and investigated a complaint, or the licence-holder has either been found guilty of contravening the country's laws, or of being guilty of employing an illegal foreigner.

Davies said the intervention was a way to bring about a cheap, easy and accessible process to register business activity in South Africa.