Mafube Business Forum (MBF) reported on 29 March this year about a bill that was approved in the Free State Legislature to oblige businesses in the province to obtain business licenses to be able to do business in their municipal areas. On Thursday 22 August, a team from DESTEA (Free State Department of Small Business, Economic Development, Tourism and Environmental Affairs) made a presentation in Frankfort to introduce the "Free State Act on Integrated Business Support, Licensing and Regulation".
The officials did not mince words about the reasons why this law was introduced. It is clearly aimed at especially foreigners who these days dominate the economy in small towns and townships; mainly because they do not comply with health laws, engage in questionable activities and do not pay any taxes. According to one speaker, there is "no respect for our people, our culture and our laws!" It was also argued that foreigners use their businesses to accommodate and employ so-called "asylum seekers" to the detriment of the local community.
It is clear that regulation is indeed needed, but the question remains as to how and who will apply the law. MBF has reservations about the ability of Mafube Local Municipality to get involved at all with the control of business licenses when it is not even able to perform the most basic services, such as issuing municipal accounts. During the meeting it was suggested that the function should instead be performed by the Fezile Dabi Regional Municipality because it already provides health and environmental services.
The following will be required by the licensing authority when applying for a business license (in terms of section 20 of the act):
1. A description of the premises on which/in which the business will be operated;
2. A certified copy of ID document or business registration of the applicant;
3. A tax clearance certificate from SARS;
4. A copy of a title deed or lease agreement for the premises;
5. Written permission from the owner to use the premises in terms of the application; and
6. A clearance certificate from SAPS.
An application fee will be required, but the amount has not yet been disclosed. MBF is of the opinion that the issuing of business licenses should not be allowed to interfere with legitimate economic activities and that any license fee that may be charged should be realistic and not to the detriment of any business.
The "Free State Integrated Business Support, Licensing and Regulation Act" can be downloaded from the MBF Website at www.mafubebf.org. MBF calls on business owners to contact us if there are any questions. MBF is constantly in discussion with DESTEA and trusts that objections can be handled through consultation.
MBF invites residents, business owners and taxpayers to visit our offices at 18A Church Street, Frankfort on Mondays to Thursdays from 08h30 to 16h00 and Fridays 08h30 to 12h00. Call or send a WhatsApp message to Marina on 079 145 4295. Visit our website www.mafubebf.org and follow us on Facebook.
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