Bill to cut red tape for owners

GOVERNMENT plans to simplify the process of business registration by local municipalities and ensure the same norms and standards apply throughout the country.

These provisions are contained in the Licensing of Businesses Bill which was published in the government gazette this week for public comment by April 18. It is likely to be welcomed by those who have lamented the mountain of red tape which they say has inhibited business development in South Africa.

Trade and Industry Minister Rob Davies said at a media briefing in parliament on Wednesday the proposed bill aimed to make business registration a cheap‚ easy and accessible process.

Currently there was a vast difference between the requirements imposed by municipalities‚ he said‚ with some not allowing informal businesses at all‚ while others had no effective system of registration.

Under the bill all businesses would have to register which‚ Davies said would give the authorities a tool to deal with illicit activities.

“We think this will give us a tool to know who is conducting businesses in our localities‚” he said.

There had been a proliferation of illegal and semi-legal businesses which could be involved in dealing with illegal imports or counterfeit goods. Businesses could seek exemption from registration under the bill if there were justifiable and reasonable grounds for this. The only proof required from applicants would be from foreigners who would have to show that they were entitled to conduct business in the country.

Registration would have to be concluded within 30 days of the application or if necessary with an additional 14 day extension‚ failing which the business would be automatically deemed to be registered.

The licence would be valid for five years with an extension being obtained through a simple process.

Hawkers would have to have a valid licence for the place at which they sold their goods.

Davies said the intention was to keep registration fees very low – they would definitely not be a means for raising municipal revenue. — BDlive