Home Enterprise?

If you are considering to operate your business from home, or if you have already made this transition, it is important to understand the legal aspects of your Home Enterprise.

A Home Enterprise is defined as the practice of an activity, business, hobby or occupation with the aim of deriving an income in a dwelling-unit on a property zoned as “Residential 1”, “Agriculture” or “Undetermined”.

The following regulations are applicable for a Home Enterprise:

• The Home Enterprise may be up to a maximum of 30% of the Gross Floor Area of the dwelling-unit and its outbuildings, with a maximum of 60 m² floor area.

• One occupant permanently residing in the dwelling-unit.

• Place of childcare with a maximum of six (6) pre-school children.

• No activities held on weekdays after 17:30, on Saturday and Sunday or public holidays.

• The dwelling-unit and home enterprise shall be zoned “Residential 1”, “Undetermined” or “Agriculture”.

• Maximum of 2 employees assisting in the operation of the Home Enterprise.

As long as your business adheres to these regulations and is considered a “micro-business”, and the dwelling is predominantly used for residential purposes, you are allowed to operate your business without special permission from Council.

It is however important to note that zoning is just one part of the legal requirements of operating a small business from your home, and that the necessary business or trading license should be obtained to avoid any penalties that you could face in the future. The rules of the Home Owners Association or the Body Corporate (where the property is situated in a sectional title scheme or an estate governed by an HOA) must also be adhered to.

Should you be uncertain as to whether or not your home business is classified as a Home Enterprise, contact us at helpme@icompli.biz or 086 006 1062 to do a Property Compliance Vetting.