Do you have the right to operate your business?

Adams & Adams gives SMME owners a advice on zoning and other potential issues.
Do you have the right to operate your business?
Do you have the right to operate your business?

Have you ever considered whether any processes need to be followed for you to run your business from home? For any entrepreneur, it is necessary to know what the law prescribes for certain businesses, or you may be bogged down by complications in the long run.

Firstly, to start and run a company from home, it is important for you to contact your local authorities. Ask about the zoning laws in your region, as some residential areas may not be zoned for business purposes at all.

You may need to apply to rezone your current property to legally conduct a business from it. You then have to make a formal application and the public would need to get involved - a hearing is usually held to give other residents a chance to voice any concerns about your endeavour. You should also find out whether there are any title deed restrictions on your property that may affect the operation of your business.

Apart from an investigation into the requirements for rezoning of your property, you will further need to check whether any licences or permits are required. A number of businesses are required to have trading licences in terms of the Businesses Act, 1991. Specific types of businesses will need special licences, such as a liquor or gambling licence, but this isn’t necessarily restricted to the hospitality or entertainment industry.

Business owners should keep in mind that there are penalties that can be faced if they trade without the necessary permit, licence or the like, and as such they need to take the appropriate steps before they start trading.

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