Capital is not the only thing required to start a business in the Bay, with documentation subject to municipal and provincial approval potentially setting you back almost two years and a further R50,000.
Nelson Mandela Bay city manager Johann Mettler outlined on Friday three of the categories for establishing a company in the city.
These are subdivided into two business categories, namely food business and industries with emissions.
The third involves rezoning structures from residential to business zoning categories, aside from areas governed by the Port Elizabeth Zoning Scheme which makes provisions that permit the “practising of a profession” from home in line with a list of conditions.
“Food business involves a simple process that however requires certain compliance issues that the business must meet before a certificate is issued,” Mettler said.
“For example, the business must have the land use rights, and approved site development and building plan. If all these are in place and approved, Public Health will issue a certificate of compliance within two to three weeks at a cost not exceeding R47.”Mettler said the second category was a lot more complex, particularly for new businesses, as it required an environmental impact assessment (EIA).
“The EIA must be approved by the department of environmental affairs and tourism. This could take up to 18 months. Once the EIA has been approved by the department it takes about 60 days for the municipality to process and give final approval,” Mettler said.
“In terms of the cost there is a calculator that is used that takes into account the emissions and the number of listed processes involved, but for a new business the cost is not more than R50,000.”
He said if a resident intended opening a business in a residential area, the process began with having the property rezoned from residential to business zoning 1, 2 or 3, depending on the type of business.
“The property owner will have to meet up with the town planner for a pre-consultation. This is a process to guide a prospective applicant on the appropriate use rights to apply for. The forms and fees will be availed at this point.
“The owner will need to submit a formal rezoning application to the city manager.
“The application is assessed by Human Settlements and recommendations tabled to the Municipal Planning Tribunal. This takes at least four months,” Mettler said.
Once approval is granted, a site development plan (SDP) will need to be submitted to Human Settlements located in the Lillian Diedericks Building.
The SDP details the business concept in line with conditions of rezoning approval.
“Upon approval of the SDP, building plans for a change of use from residential to business will need to be submitted to Human Settlements building inspectors for approval. The last step is the owner obtaining a business licence from the public health directorate.”