How to start a catering business in South Africa

Company, tax and VAT: what to register and when

You can trade as a sole proprietor, but most caterers who want corporate work register a private company. Corporate clients and many venues ask for a company registration number and a tax clearance before they add you as a supplier.

CIPC registration through BizPortal costs R175 including a name reservation. SARS says CIPC registered companies are registered for income tax automatically through a direct link, and the income tax number appears on the CoR14.3 registration document.

VAT is where many new caterers get it wrong. From 1 April 2026 compulsory registration applies once taxable supplies exceed R2.3 million in a 12 month period, up from R1 million. You may register voluntarily once you pass R120,000. Registering early lets you claim VAT on equipment, but every quote you send must then include VAT at 15%.

Step by step

1. 1

   Choose your niche and test prices

   Decide what you will actually cater: weddings, corporate platters, school functions, funerals or traditional ceremonies. Price three sample menus per head, including staff, transport and crockery, before you register anything.

2. 2

   Register the business with CIPC

   A private company can be registered on BizPortal in a day for R175 including a name, or R125 without one. Companies registered with CIPC receive an income tax reference number from SARS automatically, shown on the registration certificate.

3. 3

   Sort out the kitchen and zoning

   Check your municipal zoning scheme before you cook commercially at home. Many residential zonings allow limited home businesses only with consent. Then bring the kitchen up to R638 hygiene standards.

4. 4

   Apply for the certificate of acceptability

   Your municipality's environmental health practitioner inspects the kitchen against R638 and issues the certificate in the name of the person in charge. Cape Town charges nothing and quotes ten working days.

5. 5

   Apply for a business licence

   Selling meals or perishable food needs a licence under the Businesses Act 71 of 1991 from the municipality where you trade. The CoA does not replace it.

6. 6

   Register as an employer when you hire

   Once you employ staff, register with the Unemployment Insurance Fund on uFiling and with the Compensation Fund under COIDA, and submit monthly UIF declarations.

7. 7

   Set up quotes, deposits and invoices

   Agree a deposit policy and cancellation terms before your first big booking. A clear written quotation per head with a VAT note, if you are registered, avoids most disputes.

Your kitchen: R638, the certificate of acceptability and zoning

Regulation R638 of 2018 sets the hygiene rules for every food premises, including a home kitchen used for catering. You may not handle food for sale on premises without a valid certificate of acceptability, and the person in charge must be trained in food safety and hygiene.

Expect the inspector to check cleanable walls and floors, hand washing facilities, cold storage, separation of raw and cooked food, waste removal and pest control. Transport matters too, because R638 covers moving food from your kitchen to the venue.

Zoning is the step people skip. Running a commercial kitchen from a house in a residential zone may need consent from the municipality, and neighbours do complain about delivery vans and early morning noise. Ask the planning department before you buy a combi oven.

What it costs to start, and how caterers make money

A lean start, using your own vehicle and hiring crockery per event, can begin with modest savings. A caterer who wants to serve 150 guests from its own stock will spend far more on equipment, chafing dishes, linen and a reliable vehicle.

Profit comes from controlling food cost and labour per head. Most of the risk sits in three places: underquoting guest numbers, paying casual staff for hours you did not price, and absorbing breakages. Write those into the quote, not into your margin.

The free business plan on this page models these numbers in rand. Change the yellow cells for your menu, staff and rent, and it works out monthly profit, the revenue you need to break even and how long it takes to earn back your startup cost.

• Price per head, not per platter, for events
• Charge a separate line for staff, transport and equipment hire
• Take a deposit to secure the date and a final balance before the event
• Confirm final guest numbers in writing a set number of days before

Finding your first clients

Venues are the fastest route. Wedding farms, conference centres and community halls often keep a preferred caterer list. Visit with a tasting box and your certificate of acceptability, because coordinators want proof that you will not cause them a hygiene problem.

Corporate work pays reliably but slowly. Companies want a tax invoice, a company registration number and often a B-BBEE affidavit or certificate before they pay. Have your documents ready in one folder before you pitch.

Word of mouth still drives weddings and family functions. Photograph every setup, ask for reviews the week after the event and keep a simple record of who referred whom.

Running the business once bookings arrive

The admin grows faster than the kitchen. Each function needs a quote, a deposit, menu changes, a final guest count, a staff roster and an invoice. Venura's catering app keeps those together per event on web, Android and iOS, so you can send a quote from the venue and see which deposits are still outstanding.

Keep a simple monthly routine: reconcile deposits against bookings, check which quotes are close to expiry, and review food cost on the last three events. Small leaks in costing add up over a December season.

Common mistakes in the first year

Registering for VAT too late is a costly one. Once your taxable supplies cross the threshold you must register, and you may owe VAT on sales you quoted without it.

The other big mistake is taking bookings before the certificate of acceptability is issued. If an inspector closes your kitchen a week before a wedding, the deposit and the reputation both suffer. Get the approvals first.

Start a catering business: questions from South Africa