Frequently Asked Questions

It licences you to sell liquor – 

• ON a premises, and 
• The liquor must be consumed ON the premises only

Therefore, liquor cannot be taken out of the licensed premises to drink somewhere else.

The following businesses sell liquor for "Off Consumption" to the public - 

• Liquor Store
• Supermarket
• Deli
• Winery
• Brewery
• Distillery

This means they sell the liquor on the licensed premises, such as a Liquor Store, but the customer cannot drink it in the Liquor Store.  The customer must take the liquor away from the premises and drink it somewhere else where it is legal to drink.  

Many people want to sell liquor, but they are scared they may be doing so illegally. 

The main Question - Do you take ownership of the liquor before you sell / distribute it? 

Answer - If the distributor takes ownership of the liquor he buys from the producer (winery, brewery, distillery) before he/she sells it to other liquor licence holder - he needs a distribution liquor licence. 

NB - If the distributor only acts as an agent for the seller and receives sales commission from either the Producer or the Buyer, he does not need a distribution liquor licence.  

Extremely Important - You need to contact a licensing expert such as LiquorWise when you want to or are already selling liquor to buyers.   Many liquor traders have run into big problems with SARS because they did not consult with a licensing expert to discuss the correct way in which the liquor traders' paperwork should be handled - even if the advice is that you don't need a liquor licence. 

Contact Us - Don't take a unnecessary chance.  You don't want to put the business at risk for which you have sacrificed so much. 

It's a Provincial, Retail liquor licence, meaning that the licence holder can sell liquor : 

• Manufactured ON the licensed premises only
• To the public only
• To be consumed either ON or OFF the premises
• Within the provincial borders, and
• Online marketing and selling is allowed (popular)

A winery usually has a micro-manufacturer’s licence, allowing the manufacturing of wine only.   You would have to apply to the Liquor Board for consent to manufacture and sell other liquor, such as craft beer or gin/vodka etc. 

NB - It is a very valuable and scarce type of licence, because it combines all the benefits of an On Consumption liquor licence (restaurant) with an Off Consumption liquor licence (Liquor Store).   Exceptional circumstances must exist, to be successful with an application to the Liquor Board.

Covid19 - This kind of licence has become even more valuable due to Covid19, because licence holders can also deliver liquor when they can't sell it on their premises.

The Licence Holder can therefore sell liquor which can be consumed –

• ON the premises it was sold, as well as
• OFF the premises (liquor consumed away from the premises)

Liquor Fact - Many people call this licence the "secret" liquor licence, because very few people know about it.

Contact Us - We can qualify your business for an On & Off Consumption liquor licence. 

Your Time = Money!   

• The Average Lead Time : 3 - 6 months.  Our record = 6 weeks! 
• How do we do it? - We work very hard from the start to finish.  
• You can’t win the licensing race by sprinting the first half, only to walk to the end.   
• For those who keep on knocking, the door will open!!

The factors determining the cost of a liquor licence are :

• The Kind of liquor licence you want;
• The Province in which the premises is located, and
• The Time & Effort required to submit a properly drafted application.
• Your Assistance and willingness to help.

Contact Us to discuss your application and timelines which would suit you. 

KEEP & PROTECT your liquor licence!   It's a VALUABLE ASSET!

You MUST protect your licence by paying the following fees :

• Licence Renewal Fee (paid annually)
• Penalties  (only if you failed to pay your Licence Renewal Fee on time) 
• Fines (only if you failed to keep to your licence conditions)

SUBSCRIBE to our comprehensive Licence Service Package for only R50/month - it includes a proven Renewal Service.  

Contact Us today for this valueble option!

Don't take any chances with such a valuable asset which has always generated valuable income!

COST OF LIQUOR LICENCE RENEWAL?

The cost to renew (and protect) a liquor licence depends on –

• the province in which the licensed premises is located, and
• the kind of liquor licence

because :

• renewal fees are differentf or -
  • each licence type, and
  • each province;
• renewal procedure is different in each province.

Contact Us for advice on what has to be done and let us help you to safely renew you liquor licence!

WHEN MUST YOUR LIQUOR LICENCE BE RENEWED?

All liquor licences must be renewed annually.   Your licence renewal payment date will depend on whether your liquor licence renewal cycle is linked to a calendar year or not. One of the following 2 options will apply to each new licence holder –

• Linked to a calendar year (1 Jan – 31 Dec) :  If your licence renewal fee cycle is linked to a calendar year, you don’t have to pay the annual licence renewal fee for the remainder of the calendar year in which your licence application was approved.   You will have to pay your first licence renewal fee before 31 December in the calendar year in which your licence was issued - for the next calendar year.  If you licence was issued on 1 April 2020, you will have to pay your licence renewal fee before 31 December 2020.
• Not linked to a calendar year :  If your licence renewal fee cycle is not linked to a calendar year, you won’t have to pay a licence renewal fee for the 12 month period following the issuing date of your liquor licence. You will have to pay your first licence renewal fee before the end of the 12 month cycle following the issuing date of your liquor licence.   If you licence was issued on 1 April 2020, you will have to pay your licence renewal fee before 1 April 2021.

CONSEQUENCES OF NON RENEWAL

This is the easiest, but worst answer to give - Your licence will lapse permanently  

Liquor Fact -  5% - 10% of all liquor licences lapse permanently each year.   This is due to a large number of reasons, such as :

• The Manager plain forgot to do the renewal;
• There was a change in staff and the new guy/girl didn't know the liquor licence had to be renewed;
• It wasn't clear who was responsible to do the renewal of the liquor licence, so no one took any action;
• The licensed business closed down;
• Cash flow problems. 

Don't risk becoming a sad statistic in this section.   Appoint LiquorWise to attend to the renewal of your liquor licence and enjoy peace of mind.

LIQUOR TRADING HOURS

Liquor trading hours is part of the conditions of each liquor licence.  

NB - You and all your staff must be aware of the liquor trading hours for your licensed business.  

Who decides liquor trading hours?

Liquor trading hours are strictly prescribed and controlled by -

• Liquor Boards or 
• Municipalities.  

Liquor Trading Hours are different for each kind of business, for example : 

• Off consumption liquor outlets (bottle stores, etc) will usually have shorter trading hours than 
• On consumption liquor outlets (restaurants, etc), who will usually be open from 08h00/10h00 to 02h00, compared to 
• Micro-manufacturers (wine farms, microbreweries) (08h00 - 24h00), and 
• Event / Temporary liquor licence trading hours, which will be for the duration of the event only and depend on the type of event. 

Who checks up or enforce liquor trading hours?

Liquor trading hours are enforced by either the local liquor officer or municipal law enforcement officers. 

Contact Us to be sure about the liquor trading hours for your area.

You need a liquor licence if you want to do the following with liquor :

• Sell liquor to the public :
  • Directly (bottle store, restaurant, etc)
  • Online (internet)

• Manufacture liquor :
  • Brewing beer
  • Distilling Gin, Brandy, etc
  • Producing wine

• Distribute liquor to retail licence holders:
  • Manufacturer
  • Liquor Distributor
  • Exporter

Contact LiquorWise to assist you to manage the complete licensing process from start to finish. 

Fines & Penalties will be charged if licence holder, staff or customers do not enforce or keep to the licence conditions.

The RESULT for non-compliance can be 1 or more of the following :

FINES - It can be more than R100 000 per transgression, as well as a negative licence record with the Liquor Board.   The amount of the fines depends on the seriousness of the transgression.   Examples of this would be when a holder of an on consumption liquor licence (restaurant) allows -

•  a customer to leave the licensed premises with liquor, which the customer will consume somewhere else.  
• liquor to be sold to-
  • minors (under 18 yrs)
  • customers who are clearly drunk
• liquor to be sold on credit.

PENALTIES - are usually payable when licence holders fail to pay their yearly licence renewal fees on time.   The amount of the penalty will depend on how long after the due date the payment is made. 

SUSPENSION - Licences may be suspended or cancelled by the Liquor Board.  This typically done in case of very serious transgressions of the licence conditions.

CANCELLATION - The Liquor Board can cancel a licence permanently.  This will be the result of a licence holder failing in his duty to ensure compliance with the conditions of the liquor licence in a serious way. 

Licence transfer - when & how?

You will need to submit an application to transfer a liquor licence in a number of cases, such as when -

• Buying or selling a business with one or more liquor licences
• Inheriting a business with a liquor licence

3 applications are required to be lodged to ensure the licensed business can carry on trading and generating income from liquor sales without any interruption. These are : 

1. Application to transfer the liquor licence;

2. Application for consent to carry on trading pending the approval of the transfer application (No 1 above), and

3. Application(s) for appointment of a manager(s).

The applications to transfer a liquor licence are probably the most common of all licence applications.  Therefore, it should be one of the easiest licence applications, but it isn't.  Why?  You're -

• Dealing with 2 parties - buyer and seller - who have different expectations. One is getting involved and the other wants to get out!
• Dealing with a business broker - who is mostly clued up on the business side of things, but not on the legal requirements for the transfer of the liquor licence or details of the licensing process.
• Dealing with an agreement of sale - most often including a basic, short, inadequate liquor licence clause, which doesn't describe the most important aspects of how the licence transfer must be treated. 

This is why it can become a logistical nightmare and a business risk to the buyer if not handled very carefully by an experienced licensing expert. 

LiquorWise will manage the complete process of transferring your liquor licence and will specifically attend to the following : 

• We engage with all role players to ensure -
  • we are aware of their respective needs and expectations;
  • they are up to date with what will be required from them regarding documentation, the licensing process and action;
• We do a complete licensing audit (due diligence) to check that -
  • the liquor licence is valid;
  • the required licence documents are on the licensed premises;
  • the premises complies to all Liquor Laws.
• We peruse the Deed of Sale and suggest any amendments which we feel are necessary to ensure a smooth licensing process and favourable outcome.
• We collect the correct Information and Documentation
• We draft all required applications, send and collect documents to be signed, as well as lodging the applications to the Liquor Board and Liquor Officer.
• We follow up with all role players until the applications have been approved, keeping everyone updated during the course of the licensing process. 

Contact Us today and allow us to assist you with the transfer of a liquor licence you are involved with.  Many buyers, sellers, attorneys, business brokers and liquor licence officers will be happy to confirm our excellent licence management skills!

Partners, Directors & Shareholders sell or buy shares for any number of reasons.   

NB - It is important to remember that if you sell 5% or more of the shares in the licensed business, it triggers an duty to submit an application for approval of the transfer of such financial interest.  

This means the sale of the shares in the licensed business can be valid between the parties, but it will only keep the liquor licence valid after the Liquor Board has approved it. 

WHY? The Liquor Laws require that any person who becomes involved as an owner of a licensed business, must be screened first.   This ensures that only persons who qualify can get ownership of a business licensed to sell liquor.  

When does the conditions of your liquor need to be changed?  The answer relates to changes to things such as :  

• the kind of liquor you may sell, or 
• the liquor trading hours
• loud music or loud entertainment in a restaurant, and
• Restrictions which apply to licences, such as that the licence may only be used for the purposes for which it was intended, eg. that a restaurant does not become a night club.

You should appoint an experienced licensing consultant to submit an application on your behalf to either the Liquor Authority or your local municipality to have your licence conditions changed.   Such an application will have to very well motivated and supported by appropriate documents. 

The conditions are inserted by the Liquor Board, who may insert any condition which they believe should apply to your liquor licence.  For instance, liquor licence training of bouncers or security staff may be required for night clubs. 

Contact Us if you need any of your liquor licence conditions changed. 

Do you like suprises?   Definitely not unpleasant ones!   

One of the most unpleasant surprises can be an inspection by a liquor inspector. They usually do the licence inspection -

• unannounced, without calling ahead - so there's no prior warning.  
• at the busiest time of the day
• when all available staff are tied up preparing food/liquor or serving customers
• while the licence documents are not in order.

The only way to make sure you pass a liquor licence inspection, is to -

• Appoint an experienced and trusted liquor licence expert, who will ensure - 
  • you have a dedicated licensing file
  • all the required licence documents are available and in the licensing file
  • the licence documents have been updated
  • enough staff members have been trained and their training certificates are in the licence file
  • you have exclusive and updated inspection checklists to allow managers to check if your business comply
  • you don't get fined
  • you don't get a negative record at the Liquor Board.

Contact Us to be prepared and ensure you'll pass your liquor licence inspection!

LiquorWise manages the licence portfolio's of many licence holders.

When is it needed?   Do I need to have many licences before I should have someone like LiquorWise manage my licence portfolio?

Can't keep track - As soon as you have a liquor licence, you also need to keep track of other kinds of licences which are usually involved with a liquor licensed business.   It is definitely advisable to have a licensing expert manage all your licences.   Why?  Let's tell you :

• You usually need more than 1 kind of licencein a business, such as :
  • Liquor Licence
  • Business Licence
  • Music Licence
  • Gambling Licence
  • Health 'n Safety Certificate
• You have to deal with a large number of role players, such as :
  • Municipalities
  • Liquor Boards
  • Liquor Officers
  • Health & Safety Inspectors
  • Fire Brigade inspectors
• Different licences have different pressure pointsyou need to be aware of, such as :
  • Different Licence Renewal Dates
  • Different Procedures to follow
  • Different Forms to complete 
  • Different Licence Renewal Fees
    
    

You need to have your licence portfolio managed.

Whether we like to acknowledge it or not - Businesses have become over regulated.   It's no use complaining about it.   

Appoint Us - you need a licensing expert such as LiquorWise to manage your licence portfolio.  It will leave you to focus on what you do best - fulfilling the needs of your customers.  

How do I get a copy of my liquor licence?

You need to take the following steps  :

• Lodge and application to the Liquor Board in the province in which your licensed premises is situated.   For instance, if your premises is situated in Rustenburg, you need to apply to the North West Province Liquor Board.
• Pay a fee to the Liquor Board for the copy.  Please note - the fees are different in each province. 

WHY do you need a copy of your liquor licence?

All Liquor Laws require that a licence holder display a copy of the liquor licence for the licensed premises where it is visible to the public.  

If you don't, you stand a very good chance of -

• being fined and 
• getting a negative record in the books of your Liquor Board. 

It can be a frustrating "exercise"(!) to get a copy of your licence if you aren't use to dealing with Liquor Authorities!

Contact Us for help you get your copy!

Approval Period (Your Time = Money! )

• 4 to 6 months - If all the role players perform on time.  
• 2 months - if you are lucky.   
• Our record = 6 weeks! 

How do we do it? 

• We work very hard from the start to finish.  
• You can’t win the licensing race if you sprint the first half and walk the rest!   
• For those who keep on knocking, the door will open!!

Warning 

• Budget for a waiting period of 4 to 6 months.   
• Plan for delays due to unexpected events, such as Covid19 or changes to the Liquor Board programme. 
• Be careful or you may run out of cash.

NB Factors which make a BIG difference :

• Your liquor licence consultant–  
  • Go for experience, skill & reputation.  
  • Cheap usually ends up being expensive.  
  • One month’s delay due to an inferior consultant / attorney will cost you a lot more in the end.   
  • The saying – “pay peanuts and you get monkeys…” – is still very true!
• Your help – Quick & Accurate response from a client is vital.
• Quality of the application– 
  • The devil is in the detail.  
  • Applications are NOT all the same.  They bear the mark of the consultant, 
  • Liquor Boards know which consultants deliver high quality applications (approved) and who deliver inferior applications (postponed or refused). 
• Liquor Boards-  
  • Their effectiveness differs from province to province.  
  • Your consultant must be willing to fight the “approval battle” on your behalf - right to the end!

Contact Us - if you want your licence within the shortest possible time!

The process? Pretty much the same as when you applied for you microbrewery liquor licence the first time.

You'll have to submit the following, amongst other things :

• New premises details
• The owner (you) details
• Detailed motivation
• Proof of payment of fees

NB - You can't just take your microbrewery licence and start to manufacture liquor on any new premises before you new microbrewery licence has been approved and issued.  You'll be fined and risk damaging your reputation.

To move a microbrewery isn't the same as moving a restaurant or liquor store. For one thing, the equipment is much more cumbersome and needs to be handled with extreme care.   The same applies when installing it on your new premises. 

Best advice - PLAN, PLAN & PLAN your move as early as possible!

Contact Us and we'll 

• manage all the paperwork
• engage with all the relevant role players
• allow you to focus on what you do best - brew good beer!

Do you like suprises?   Yes, of the pleasant kind!

Avoid an unpleasant surprise, such as an unexpected inspection by a liquor inspector.  Such inspections are typically done -

• unannounced, without calling ahead - so there's no prior warning.  
• at the busiest time of the day
• when all available staff are tied up preparing food/liquor or serving customers
• while the licence documents are not in order.

The ONE way to make sure you pass a liquor licence inspection, is to -

• Appoint a trusted liquor licence expert, who will ensure - 
  • you have a dedicated licensing file
  • all the required licence documents are available and in the licensing file
  • the licence documents have been updated
  • enough staff members have been trained and their training certificates are in the licence file
  • you have exclusive and updated inspection checklists to allow managers to check if your business comply
  • you don't get fined
  • you don't get a negative record at the Liquor Board.

Contact Us to become a member of The Licence Co for little more than the price of a cup of coffee.  Join our other licence holders who enjoy the peace of mind knowing that we have their back when it comes to passing inspections of liquor store licences! 

of our  prepared and ensure you'll pass your liquor licence inspection!

The following businesses sell liquor for "On Consumption" to the public - 

• Restaurants / Coffee shops
• Deli
• Sport Bar / Pub / Tavern
• Hotel
• Guesthouse / B&B
• Night Club 
• Sport Club
• Wine Farm / Tasting Room 
• Gambling Business
• Microbrewery
• Markets

This means they sell the liquor on the licensed premises, such as a restaurant, and it must be consumed in the restaurant.   The customer cannot take the liquor out of the premises and consume it elsewhere.