Deadline approaches for comments on the draft Business Licensing Bill amid ‘red tape’ concerns

Business owners and other interested parties in the country's business sector have a few days left to comment on the draft Business Licensing Bill.

The public comment period runs until November 28. The comment period for the bill, which was released by the Department of Small Business Development for public comment in September, was extended to November due to heightened interest according to the department.

The aim of the Bill, according to a Cabinet statement, is to amend the Business Act of 1991, and the amendments seek to establish a modern and efficient business licensing framework that fosters economic growth and regulatory efficiency and also protect the participation of South Africans in the informal sector.

If passed it will make it law that a registry of all businesses operating within the country in both the formal and informal sectors be maintained. Businesses will have to register with, and obtain a licence from their municipality. A licence will last for five years and must then be renewed.

Minister of Small Business Development, Stella Tembisa Ndabeni, will lead a crucial consultation workshop on the Business Licensing Bill in Durban, KwaZulu-Natal on Tuesday.

Some organisations have raised concerns about the bill saying it adds more red tape for small businesses that are already facing a difficult regulatory environment.

The National Employer Association of South Africa (NEASA) said it was against the over regulation of business.

“It is cited by Government that it is aiming toward the reduction of red tape to make it easier and more cost-efficient to run a business in South Africa, and yet, this very Bill will prove to only add red tape and be a burdensome regulatory requirement that will only serve as a costly administrative constraint for not only businesses but Government itself.”

NEASA further said in its submission that it had concerns regarding some of the provisions of the proposed legislation and needed clarity on vague terms used in the Bill (i.e., the usage of the phrases ‘persons and areas that were previously excluded’ and ‘disadvantaged groups and areas’) which are not defined in the Bill.  

“NEASA unequivocally rejects the notion that the issuing of business licences must be based on any system of preference which may unduly preclude any group of society from being eligible for obtaining a business license or which disqualifies any group for preferential treatment as a result of their demographic, ethnic, or national background.”

Reuben Coetzer, spokesperson of civil society group Free SA, said the Bill was not a plan for economic inclusion but a “blueprint for regulatory suffocation”.

“Instead of supporting small enterprises and informal traders, the very engines of job creation, the Bill adds red tape, creates uncertainty, and hands unelected officials sweeping discretionary powers.

“With over 11 million South Africans unemployed and small businesses closing every day, government should be prioritising economic freedom and simplification, not top-down control,” added Coetzer.

The bill is available here. 

Comments can be emailed to Mr Thembani Masinge at BLBSubmission@dsbd.gov.za by no later than Friday, 28 November 2025.