A food business in South Africa typically needs three separate approvals before it can legally open: a business licence from the municipality, a Certificate of Acceptability confirming the premises meet hygiene requirements, and a liquor licence if alcohol is served. Miss any one of them and you are trading illegally, regardless of how good the food is.
This guide sets out what each approval covers, where you apply, and what it actually costs. Wider food-safety obligations beyond licensing are covered in our piece on the importance of food safety expertise.
The business licence
Under the Businesses Act 71 of 1991, anyone selling or supplying meals or perishable foodstuffs for consumption on or off the premises needs a business licence, whether that is a sit-down restaurant, a takeaway, or a spaza shop. The requirement sits at municipal level, so the exact process and cost differ from one municipality to the next.
A narrow exemption exists for institutions such as schools, where a tuck shop’s profits are devoted back to the institution itself rather than run as a commercial enterprise.
Costs and terminology also differ by category. Hawkers and informal traders, along with accommodation establishments such as guest houses and B&Bs, typically apply for a trading permit rather than a full business licence, renewable annually and priced separately from a standard business licence. Restaurants, takeaways, spaza shops, supermarkets and wholesalers apply for the standard business licence. Tariffs are set annually by each municipality, so confirm the current figure with yours rather than working from an old quote.
In most metros the application is routed through several departments at once, typically environmental health, noise and air pollution control, public safety, urban planning and building control, and the licence is only issued once all of them sign off. That is why a first-time application can take longer than expected: it is not one office’s decision but several.
The Certificate of Acceptability
This is the one most owners get wrong, including the underlying law. It is issued under Regulation R638, made under the Foodstuffs, Cosmetics and Disinfectants Act 54 of 1972, not the older Health Act many older guides still cite. R638 sets the general hygiene requirements for food premises and the transport of food, and any premises where food is prepared, handled or sold needs this certificate before trading.
The certificate has no fixed expiry, but it becomes void the moment a material condition changes, a change of ownership, a change to the layout, or a significant change to what is prepared on the premises, so it needs to be reassessed whenever any of those happen rather than treated as a one-time formality.
You apply to your local municipality’s Environmental Health Department, and an Environmental Health Practitioner inspects the premises before issuing it. Expect checks on smooth, non-toxic food-contact surfaces, working drainage, adequate ventilation and lighting, screened openings against pests, proper handwashing facilities, evidence of active pest control, and documented cleaning schedules. Regulation 10 training for food handlers is a requirement of the regulation itself, not optional paperwork: you cannot get the certificate without it.
The liquor licence
If you plan to serve alcohol, you need a liquor licence, and this is administered provincially rather than nationally or municipally, so requirements and timelines differ depending on which province you trade in. Apply to your provincial Liquor Authority or Liquor Board well before your planned opening date, since these applications routinely take longer than the food-related approvals above.
Music licensing, if you play anything at all
Playing music in a restaurant, even quietly in the background, requires two separate licences from two separate organisations, and missing either is a copyright matter rather than a municipal one.
A licence from SAMRO, the Southern African Music Rights Organisation, covers the composition and lyrics and distributes royalties to songwriters and publishers. A licence from SAMPRA, the South African Music Performance Rights Association, covers the recorded performance itself and distributes royalties to the recording companies. These cover different rights and neither substitutes for the other, so a restaurant playing recorded music needs both.
Other legal areas that catch restaurant owners off guard
The Tobacco Products and Electronic Delivery Systems Control Act governs where smoking, and now vaping, is permitted on your premises, and non-compliance carries its own penalties separate from your business or health licence.
The Consumer Protection Act entitles your customers to food and service of reasonable quality, and a franchisee operating under this Act has specific statutory protections that must appear in the franchise agreement itself, which is worth checking if you are buying into a franchise rather than starting independently.
Beyond the regulatory side, get your commercial basics reviewed properly: the lease on your premises, and any supply agreements with the businesses that provide your stock. If you are entering through a franchise, our piece on what happens when a franchisor goes bust is worth reading before you sign. A lawyer reviewing these before signature is far cheaper than discovering a bad clause once you are already trading.
What happens if you skip any of this
Operating without the required business licence or Certificate of Acceptability is a criminal offence, carrying a fine, imprisonment, or both, depending on the specific breach. Playing music without the correct SAMRO or SAMPRA licences is a copyright infringement, which exposes you to a civil claim from the rights holder rather than a municipal penalty. Neither is a risk worth carrying to save a modest annual fee.
Delivery adds its own layer of compliance
If you deliver food yourself rather than only through a third-party platform, the transport requirements in Regulation R638 still apply: the vehicle must be clean, food cannot travel alongside contaminated goods or anything that could taint it, and the same hygiene discipline that applies in the kitchen extends to the vehicle carrying the order.
Listing on an established delivery platform is the lower-friction alternative, trading a commission on each order for access to a customer base you have not had to build yourself. Our guide on joining Uber Eats as a restaurant covers what that process actually involves. Either route still requires the underlying food safety compliance above.
Moving your business to another province
A business licence, Certificate of Acceptability and liquor licence are all issued locally, so relocating means reapplying in the new municipality and province rather than transferring your existing approvals. Budget the time for this the same way you would for a completely new opening, including landlord consent and any town planning sign-off the new location requires.
Frequently asked questions
What licences does a small restaurant need at minimum?
A business licence from the municipality and a Certificate of Acceptability confirming food hygiene compliance. Add a liquor licence if you serve alcohol, and SAMRO and SAMPRA licences if you play any music.
What law actually governs the Certificate of Acceptability?
Regulation R638, made under the Foodstuffs, Cosmetics and Disinfectants Act 54 of 1972. It is a common error to cite the Health Act instead, and the distinction matters if you are ever disputing a compliance notice.
Does the Certificate of Acceptability expire?
It has no fixed expiry date, but it becomes void when a material condition changes: ownership, layout, or a significant change to what is prepared on the premises. Reassess it whenever any of those happen.
Do I need both a SAMRO and a SAMPRA licence to play music?
Yes, if you want to play recorded music at all. They cover different rights, the composition versus the recording, and neither replaces the other.
What happens if I move my restaurant to a new province?
You reapply for a business licence, Certificate of Acceptability and liquor licence in the new location. None of these transfer automatically between municipalities or provinces.
Before you open your doors
Start the Certificate of Acceptability and business licence applications well ahead of your planned opening, since both involve an inspection and neither is instant. If alcohol is part of the offering, start that application earliest of all, since provincial liquor licensing routinely takes the longest of everything covered here.
This article was updated in September 2026.
