Applying for a Shop License in Zimbabwe (Step-by-Step Guide)

In terms of the Shop Licences Act Chapter 14:17 and the Urban Councils Act Chapter 29:15, it is a legal requirement to license any trade or business carried out in a shop, store, or other fixed location. Bypassing this requirement is illegal and can lead to severe consequences, including hefty fines, confiscation of stock, immediate business closure, or up to six months of imprisonment.

Pre-Application Requirements

Before approaching your local authority, ensure you have the following groundwork completed:

• Company Registration: Your business must be formally registered as either a Private Limited Company (PLC) or a Private Business Corporation (PBC).
• Zoning Approval: The Town Planning Department must confirm your chosen premises are legally zoned for commercial land use.
• Tax Clearance: You must obtain a valid Tax Clearance Certificate (ITF 263) for the current year from ZIMRA.

The Application Procedure (Step-by-Step)

Step 1: Obtain Application Forms and Pay Admin Fees

Visit your local council's licensing office and pay an initial administration fee, which is generally around $20. The licensing officer will then issue you an SL2 application form and any other necessary forms.

Step 2: Health and Premises Inspection

Your premises must be inspected by an Environmental Health Officer (EHO) to ensure they meet minimum standards for sanitation, approved lighting, ventilation, and waste storage. Depending on the municipality, you may need to pay an inspection fee, such as $55.

• If the premises fail the inspection (an adverse report), you must correct the defects and request a re-inspection.
• If the premises pass, you will be issued a satisfactory health report.

Step 3: Temporary Trading Permit

Once your health report is approved, the local authority will issue you a business account number. You will then pay for a temporary trading permit (which generally costs between $90 and $160 depending on the council). This allows you to trade legally for three to six months while awaiting final approval.

Step 4: Final License Issuance

Once the committee approves your application, you will pay the final prescribed shop license fee. Depending on your business operations and local council rates, this fee typically ranges between $345 and $700.

Renewals and Ongoing Compliance

Once you have your license, you must adhere to the following rules to stay compliant:

• Validity & Expiry: A shop license is valid for a minimum of 12 months and generally expires on the 31st of December each year.
• Renewals: You must renew the license annually. Late renewals (processed after January 31st) attract monthly penalties of 10% to 20% of the standard license fee.
• Strict Usage Restrictions: The license is not transferable to a new owner. Furthermore, it is only valid for the specific premises and the exact business activities for which it was originally issued.
• Public Display: The law dictates that your shop license must be displayed in a clearly visible position inside the premises at all times.