Registering a Transport or Logistics Business in South Africa (Taxi, Courier, Trucking)

Introduction: South Africa’s Growing Transport & Logistics Sector

With the rise of e-commerce, urbanisation, and infrastructure development, South Africa’s transport and logistics industry is booming. Whether you want to run a metered taxi, start a courier service, or launch a freight and trucking company, registering your business and securing the right permits is crucial.

This comprehensive guide explains how to register a transport or logistics business in South Africa, covering business compliance, vehicle permits, licensing authorities, costs, and industry-specific regulations to help you launch and grow legally.

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Step 1: Register Your Business (CIPC)

Start by legally registering your company:

Requirements:

• Choose a structure: (Pty) Ltd is recommended for credibility and funding eligibility
• Apply online via CIPC
• Submit:
  • Company name
  • ID documents
  • Proof of address
  • Company director details

Estimated Cost:

• From R125 (basic registration)

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Step 2: Register with SARS

Once registered with CIPC, get your tax and compliance documentation in order.

Register for:

• Income Tax
• VAT (mandatory if turnover exceeds R1 million)
• PAYE/UIF (if hiring employees)
• Obtain a Tax Clearance Certificate via SARS eFiling

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Step 3: Apply for Sector-Specific Operating Licences

Depending on your transport business type, different permits and approvals are required:

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A) Taxi/Minibus Transport Business

You’ll need an Operating Licence issued by the Provincial Regulatory Entity (PRE) or the National Public Transport Regulator (NPTR).

Requirements:

• Business registration (CIPC)
• Tax clearance certificate
• Roadworthy certificate for each vehicle
• Valid driver’s licences and PrDPs (Professional Driving Permits)
• Route or area plan
• Zoning approval from your local municipality

Apply Through:

• PRE offices (via your provincial Department of Transport)
• NPTR for interprovincial and tourist services

Estimated Timeline:

• 6 to 12 weeks

Cost:

• Application fee ± R300–R1,000 per vehicle
• Annual renewals required

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B) Courier Business (Light Delivery Vehicles)

While courier services are less regulated than taxis or freight, you still need to comply with:

Requirements:

• Business registration (CIPC)
• Roadworthy certificate for delivery vehicles
• Goods-in-transit insurance (recommended)
• Driver’s licence + business use vehicle insurance
• Signage (if required by your city)

Courier companies are not required to register with NPTR unless carrying passengers or dangerous goods.

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C) Freight / Trucking Company

If your vehicles exceed 3,500 kg, or if you transport goods interprovincially or across borders, you need additional documentation.

Requirements:

• Business registration
• Cross-border permits (if applicable)
• Operating Licence from NPTR
• Vehicle tracking system (recommended)
• Dangerous Goods Permit (if transporting fuel, chemicals, etc.)
• COIDA and Public Liability Insurance

Key Authorities:

• NPTR
• Cross-Border Road Transport Agency (C-BRTA): www.cbrta.co.za
• Department of Labour (for COIDA)

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Step 4: Register with COIDA and UIF

If you hire employees (drivers, logistics coordinators, etc.), you must register for:

COIDA (Compensation for Occupational Injuries and Diseases)

• Register via labour.gov.za
• Submit employee payroll info

UIF (Unemployment Insurance Fund)

• Register online via uFiling

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Step 5: Comply with B-BBEE and Municipal By-laws

B-BBEE Compliance

• Level 1–4 can help secure logistics contracts and government tenders
• For turnover < R10M: submit a sworn affidavit
• Larger businesses need a certified B-BBEE Verification Certificate

Local Municipal Approvals

• Signage and parking by-laws
• Noise and emissions controls
• Loading zones and depot licensing (especially for trucking depots)

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Estimated Startup Costs by Transport Type (2024–2025)

Business Type	Estimated Setup Cost
Taxi Business	R8,000 – R20,000
Courier Service	R5,000 – R15,000
Trucking Company	R15,000 – R50,000+ (depends on fleet size, permits, insurance)

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Common Mistakes to Avoid

• Not registering for operating permits for each vehicle
• Failing to renew licences annually
• Using vehicles not approved for commercial use
• Overlooking goods-in-transit or liability insurance
• Skipping local municipal regulations
• Hiring drivers without valid PrDPs

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Tips to Streamline the Process

• Use a licensing consultant for complex setups like cross-border trucking
• Bundle applications (CIPC, SARS, COIDA) to save time
• Choose the right vehicle class to avoid permit issues
• Ensure all vehicles are roadworthy before applying
• Maintain digital copies of all permits and renewals in cloud storage

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Frequently Asked Questions (FAQs)

1. Do I need a licence for each vehicle?

Yes. Each vehicle must have its own Operating Licence or permit and be registered with the relevant authority.

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2. Can I run a logistics business from home?

Yes, especially for courier services, but check your zoning laws and consult your local municipality.

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3. How long does the process take?

Depending on your transport type:

• Courier: 2–3 weeks
• Taxi/Minibus: 6–12 weeks
• Trucking: 8+ weeks (cross-border may take longer)

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4. Is goods-in-transit insurance required?

Not mandatory, but highly recommended to protect your business and clients in case of accidents or theft.

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5. Can foreigners start a transport business in South Africa?

Yes, but they must:

• Be legally registered with CIPC
• Hold a valid business visa
• Comply with all local licensing and tax laws

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Final Thoughts

Whether you’re launching a taxi company, courier startup, or freight logistics business, success begins with proper registration and compliance. South Africa’s transport sector is rich with opportunity — but you must operate legally, insure your assets, and maintain high operational standards.

Once you’re fully registered, focus on building a reliable brand, efficient routing, and strong customer service. That’s how you grow and stay ahead in this competitive but rewarding industry.