Many business owners in the hospitality industry believe that if they give free liquor to their clients they will not need a license.
This is false. You need a license if you are going to supply liquor to the public, whether you charge for it or not.
Because of changes to the
National Liquor Act, the provinces are now responsible for all retail liquor licensing in South Africa. If you need to apply for a liquor license, you will now need to deal with the Liquor Board in the province where your business is situated. Every province will compile and regulate their own liquor laws. The respective regulations will determine the application fees and the format of the application forms.
If you are planning to open an accommodation business and you are going to sell liquor, you will need an
on consumption retail liquor license.
The way you apply for an
on consumption liquor license will be different depending on where your business is located and on the provincial Liquor Board you will be dealing with.
When you apply for a license, make sure that you do it in time and long before the date when you hope to start selling liquor to the public. It is a good idea to apply at least
ten to twelve months before this date. Some business owners hire liquor consultants to do all the work of applying for a license for them. This is allowed and if you can afford a cost of anywhere between R5000 – R7500 outside Gauteng and between R6000 – R8500 in Gauteng per application, it is a good idea because these consultants should know exactly what has to be done.
The main priority of a good
liquor consultant is to insert the correct information when completing the application form and to follow up after lodging the application.
Once you have received your liquor license, it will have to be renewed annually. You must never rely on the provincial authorities to remind you - they won’t! If you are going to change your business in any way, make sure that you let your liquor authority know about this by completing and handing in the correct application. If you are going to appoint a manager to run your business and be responsible for the day to day sale and control of liquor, then you will need to let your authority know by completing and handing in the correct form.
It is compulsory to appoint a natural person if the license holder is a close corporation, company or a trust. If not, you are in contravention of the Liquor Act and acting illegally. It is, in any case, a very good idea to appoint at least two persons to ensure that the conditions of the license are enforced, as one person will not always be on the premises due to annual leave, hospitalisation etc. Finally, you need to
display your liquor license in a place where the public can see it, together with the most recent proof of payment of your annual renewal fee.
Corine van Dyk is the Course Convener of the 10-week distance-learning
University of Cape Town Guest House Management Course, designed for both prospective and current hospitality establishment owners and managers.
Click here for more information.
Back to SmartyPants Newsletter - March 2010 Edition
