You’re ready to take the leap, leaving corporate to turn that side hustle into the main hustle, so you’re asking yourself, “can you legally run a business from home in South Africa?”
The short answer is yes, but as with most things, it’s not quite that simple.
Launching a business from the comfort of your own home sounds idyllic: no traffic, flexible hours and your own fully stocked fridge just a few steps away. Before you turn your spare room into a salon or your garage into a bakery, it’s essential to know the legal, practical, and financial implications involved.
Getting into the zone: what do the zoning laws actually say?
To maintain order and quality of life in neighbourhoods, local authorities have regulations that set out the types of business activities that are acceptable in residential areas. In most municipalities, these zoning regulations, governed by the Spatial Planning and Land Use Management Act (SPLUMA) of 2013, stop you from running a business from home – unless you’ve received special permission.
If you do want to run a business from home, in most cases you will need to apply for a temporary departure, in terms of which you legally run your business from home, usually with specific conditions. As the City of Cape Town’s Development Management notes, “To ensure that you succeed in your application, consider approaching your local district planning office for advice on the feasibility of your proposal and any specific factors that you should take into account.”
Top tip: If you are looking for a more sustainable solution that could potentially add value to your property, consider having your property rezoned as mixed-use. While this process can be lengthy, rezoning offers long-term flexibility and legitimacy for your home-based venture because it permits both residential and commercial activity. Another option is to explore buying or renting a commercial property that’s already zoned for business.
Word to the wise: If you do go the rezoning route, bear in mind that you will incur costs, including, for example, rezoning fees, an increase in rates, and depending on the type of business activity and staff numbers, higher utility bills.
Exceptions that prove the rule
Before you panic about your one-person estate agency, accounting practice or transitioning your candle side hustle, take a breath. Many micro-businesses are allowed to operate in residential zones without special permission.
According to the South African Local Government Association (SALGA), “Micro-enterprises that do not materially alter the residential character of the property may be permitted without rezoning” (SALGA Guidelines).
In simple terms, this means that you can run a micro-enterprise from your home if the business takes up less than 50% of the property, and if
- You continue to live in the property, which also continues to be used mainly for residential purposes
- The business doesn’t make a noise, bring traffic, disrupt, and/or disturb your neighbours
What is a micro-enterprise?
In South Africa, micro enterprises are classified in terms of the sector in which they operate and defined in terms of two main characteristics: the number of people they employ, and annual turnover. Typically, a micro-enterprise employs between zero and 10 people.
What businesses can you legally run from home?
The good news is that there are businesses that you can legally run from home and they fall into two broad categories. The first is with “consent use”, which refers to special approval granted by the City, allowing a property owner to carry out a land use that would not normally be permitted under the site’s current zoning regulations. These typically come with specific conditions. We have listed examples in the table below (note: this is merely a short overview and should not be taken as a full list of requirements).
| Type/category of business | Examples and/or typical consent use conditions, if any |
| Medical practices | Doctors, dentists, physiotherapists—often allowed with consent, use; limited, low-key signage |
| Professional services | Accountants, attorneys, architects, consultants, limited, low-key signage |
| Real estate agencies | Especially in suburban nodes with mixed-use trends |
| Beauty and wellness therapy salons and barber shops | Must comply with health and safety regulations |
| Home-based bakeries | Must comply with hygiene standards and have a municipal certificate of acceptability (COA) |
| Online businesses | E-commerce, digital marketing, virtual assistance; low impact because of no in-person customers or clients; limited stock stored onsite |
| Printing and signage | Small-scale operations with minimal foot traffic and low customer numbers; limited stock stored onsite |
| Tradespeople and artisans (e.g. plumbers) | Home office and/or administrative function only; minimal light operations and limited stock stored onsite |
| Tutoring and education | Private lessons or small learning groups, which may need special consent |
| Bed and breakfast establishments | Minimal foot traffic and must comply with environmental health and safety standards and have a municipal certificate of acceptability (COA) |
| Crèches (childcare facilities) | To a maximum of 6 children, otherwise the facility must be registered; it must comply with environmental health and safety standards and have a municipal certificate of acceptability (COA) |
The second category of micro-business that you can run from home, and without a zoning change, is:
- Freelance work, e.g. writing/editing, graphic design and digital art
- Virtual consulting, coaching and admin services, e.g. accounting/bookkeeping, virtual assistants
- Online consulting/coaching
- Non-inventory e-commerce
- Software development/IT (without a server room)
- Video/photography studio, podcasting production and voice-over – preferably with soundproofing
- Dressmaking, tailoring, sewing
- Private lessons/tutoring – with one to two learners onsite at a time
Note: this is not an exhaustive list
What makes it legal to run these businesses from home?
Most of these businesses will either have one or two employees who generally live on the property with few, if any, onsite meetings or customers. This also means that in addition to limited or no public access, in specific business hours, there will be no business signage, foot traffic or parking issues.
Top tip: If you plan to scale up your business, you will have to factor a potential change in either zoning or premises into your planning. For example, if your digital ad agency grows and you develop beyond 10 employees who work out of your home-based office, it might be prudent to apply for “consent use” because the business would no longer fall under the “primary residential” or “incidental” use provisions.
And for other businesses? Mooch down to the municipal planning department…
If your business falls outside the typical micro-enterprise category, for example, a small-scale metal fabrication or spice-blending operation, you’ll probably need to apply for rezoning or a departure and comply with the relevant environmental health and safety regulations. A trip to your local municipality’s planning office will provide you with the information you need. Also, the officials will usually guide you through the process, including public notices and, if required, any environmental impact assessments.
Top tip: Remember to check your title deed. Any property restrictions recorded at the Deeds Office will trump any rezoning application.
Paperwork versus penalties: why compliance matters
It might be tempting to skip the red tape and quietly run your business under the radar. But here’s the catch: every neighbourhood has a curtain-twitcher. Inevitably, somebody will notice, and if that somebody formally complains, you could face serious consequences.
Contravening municipal bylaws can result in fines and, in some instances, businesses can be closed down if they‘re not compliant with local zoning laws and other appropriate regulations. You need to ask yourself: is it worth the risk?
What else?
We have largely focussed on zoning matters, but as they say, that’s not all. Here’s a list of other things you’ll need to consider for staying compliant when running a home-based business:
- Other permissions, e.g. from your landlord if you rent and/or from your homeowners’ association and/or body corporate (always in writing).
- Insurance for the business and for the premises that takes into account the implications of on-site customers, e.g. for a B&B or wellness salon.
- A business or trading licence
- Registration with SARS as an employer and as a provisional taxpayer
Ready to get going? Plan smart, start right
We hope that this gives you an insight into how to go about planning and legally running a home-based business. If, at this point, you’ve not settled on a business, are you cut out to be a real estate agent? Perhaps consider joining South Africa’s number one real estate brand by investing in a RE/MAX franchise?
For more information, contact your local RE/MAX office.
Have more unanswered questions? Here are some related questions – and answers – that might help…
Is it legal to run a real estate business from home in South Africa?
While you can legally run certain businesses from home, real estate is different, as professionalism, compliance, and client trust are vital to the industry, which is why we recommend that real estate agents should not set up “home offices” to host clients. While most agents work remotely for flexibility, client meetings, transactions and official business should always take place at an official real estate office. This ensures a professional environment, provides the right support structures for agents, and delivers the level of service and credibility that clients expect. Beyond this, it is also far safer for agents to meet with prospective clients in a public setting rather than inviting strangers into their homes.
How much does it cost to register a small business in SA?
As of 2025, registering a new company with the CIPC costs R125 or R175 if you also reserve a business name.
What can I claim for home office expenses at SARS?
If you qualify, you may claim a proportional share of costs like rent, rates, electricity, cleaning and wear-and-tear on office equipment. To check your eligibility and what you can legitimately deduct, you can take SARS’ Home Office Expenses Questionnaire. Always confirm with a tax professional for personalised advice.
