DG defends Business Registration Bill
Critics say businesses are already battling due to government regulations.
JOHANNESBURG - Trade and Industry Department Director-General Lionel October on Friday said the Business Registration Bill only formalises parts of the economy that are currently in the informal sector.
He was defending the bill against criticism from business organisations.
October said there were good reasons why businesses should get licences from government.
"There must be licencing so that you have protection. For example, if you set up a store and you get permission to operate, you cannot be chased away from it tomorrow."
However, economist Chris Hart said firms were already battling due to government regulations.
"No small business in this country operates fully within the law and is solvent."
October said small firms would pay only R10 to register and large firms would pay R50.