Regulation

Company Registration

First and foremost, you would need to register your business with the Companies and Intellectual Property Commission (CIPC) in South Africa. This process involves completing the necessary paperwork, deciding on a business structure (like a private company, a personal liability company, or a non-profit company), and paying the relevant fees.

Business Licensing

Depending on the nature and scale of your business, you might need a specific business licence from the local municipality. Requirements for these licences vary, so you would need to contact your local authorities for detailed information.

Compliance with Precious Metals Act

In South Africa, the dealing, possession, smelting, and processing of precious metals are governed by the Precious Metals Act, 2005 (Act No. 37 of 2005). This law was enacted to ensure that precious metals are controlled to prevent illegal activities. Any business dealing with precious metals needs to comply with this act.

Diamond and Precious Metals Regulator

The South African Diamond and Precious Metals Regulator (SADPMR) is responsible for administering the Precious Metals Act. One of its main functions is to issue licences to prospective dealers, jewellers, smelters, and precious metals beneficiation enterprises. You will need to apply for a licence from the SADPMR.

Know Your Customer (KYC) & Anti-Money Laundering (AML) Rules

As a dealer in precious metals, you would also have to comply with Know Your Customer (KYC) and Anti-Money Laundering (AML) regulations. These require businesses to verify the identity of their customers and monitor transactions to prevent money laundering. This is enforced by the Financial Intelligence Centre Act, 2001 (FICA).

Tax Compliance

You must register for tax with the South African Revenue Service (SARS). Depending on the size and type of your business, you may need to register for VAT, PAYE, UIF, SDL, Income Tax, and others.

National Credit Act (NCA)

If your business involves lending money or providing credit to customers (for example, to buy gold or silver), you must comply with the NCA.

Consumer Protection Act (CPA)

Any business in South Africa must comply with the CPA, which aims to promote a fair, accessible and sustainable marketplace for consumer products and services. This includes stipulations about warranties, returns, and marketing practices.

Import/Export Regulations

If your business involves importing or exporting gold and silver bullion, you would need to comply with the regulations of the South African Revenue Service (SARS), which includes obtaining the necessary permits and paying the appropriate duties and taxes.

Insurance

You might need to consider insuring your business against theft or loss of precious metals.

Compliance with International Laws and Sanctions

If your business involves international transactions, you need to ensure that you’re not dealing with individuals, organisations, or countries that are subject to international sanctions.

Remember that these are just some of the most common regulations that could apply. Depending on your specific circumstances, there may be additional rules and regulations you need to follow. I recommend consulting with a legal expert or business advisor to ensure that you’re fully compliant with all relevant laws.