Overview: This guide explains what a scrap metal dealer in South Africa has to register for, what it costs, what the application involves, and how long registration lasts. It is written for anyone starting a scrap metal business, and for sellers who want to check that the yard they deal with is registered.
Key Takeaways
- There is no separate “scrap metal licence” in South Africa. Dealers register with the South African Police Service (SAPS) under the Second-Hand Goods Act 6 of 2009.
- There is no application fee. SAPS has confirmed that renewal is free of charge; the cost of trading legally sits in what the registration requires.
- Registration is valid for five years, and under section 11 of the Act renewal must be lodged between 180 and 90 days before it ends.
- Each premises needs its own registration, and a dealer that recycles controlled metal must register as a recycler too.
- Dealing without registration is a criminal offence that can lead to a fine or up to 10 years in prison.
- Larger sorting and processing operations may also need a waste management licence under the National Environmental Management: Waste Act (NEMWA).
- Sellers do not register, but must show an original ID and give their name and address every time they sell.
The SAPS registration that allows a business to trade scrap metal in South Africa costs nothing to apply for. What costs money is everything around it: premises SAPS can inspect, scales and a register of every transaction, and, for larger operations, a separate waste management licence. Most people searching for the price of a scrap metal licence are really asking what it costs to set up a compliant scrap metal business, and that depends almost entirely on the size of the operation.
Is there a scrap metal licence or permit in South Africa?
Not under that name. South Africa does not issue a document called a scrap metal licence or a scrap metal permit. Instead, anyone who deals in second-hand goods, which includes scrap metal, must register with SAPS under the Second-Hand Goods Act 6 of 2009. The certificate that comes back from that registration is what people mean when they talk about a scrap metal licence.
The Act exists largely because of metal theft. Stolen cable, stolen infrastructure components and stolen manhole covers all end up in the same trade as legitimate scrap, so the law puts the burden of record keeping on the buyer. That is also why an unregistered buyer is a risk to the person selling to them, not only to themselves.
What is the Second-Hand Goods Act 6 of 2009?
The Second-Hand Goods Act 6 of 2009 is the South African law that governs trade in second-hand goods, scrap metal included. It requires dealers and recyclers to register with SAPS, to keep a register of every transaction and to let the police inspect both the register and the premises.
Its rules on controlled metal are the strictest part of the Act. Controlled metal is defined in Schedule 2 and includes copper, aluminium, zinc, lead, nickel, tin, brass, bronze and precious metals, as well as articles made wholly or mainly of them. In practice, the Act does three things for a scrap metal dealer: registration is compulsory, records are compulsory, and both can be checked by the police.
Dealing without registration is an offence. Under section 32 and Schedule 3 of the Act, it can lead to a fine or imprisonment of up to 10 years, and a court can order the goods involved to be forfeited to the State.
Which registration does a scrap metal business need?
Most scrap metal businesses need both a dealer registration and a recycler registration. Section 25 of the Act requires a dealer who recycles controlled metal to register as a recycler as well, so a yard that buys copper or aluminium and then processes it falls into both categories.
| Registration | Who it covers |
|---|---|
| Second-hand goods dealer | Any business that buys or receives second-hand goods, including scrap metal, for resale |
| Recycler | A dealer that recycles controlled metal rather than only reselling it |
Source: Second-Hand Goods Act 6 of 2009, sections 2, 3 and 25.
Registration is also tied to the address. Section 3(2) requires a separate registration for each premises from which the business trades or where goods are stored, so a company with several yards needs a certificate for each one.
What does the SAPS application cost?
There is no application fee to register as a second-hand goods dealer or recycler, and SAPS has confirmed that an application for renewal is free of charge. The Act allows fees to be set by regulation, but SAPS guidance on the application process lists no fee for registration either.
That surprises people, because the trade has a reputation for being expensive to enter. The expense is real, but it sits elsewhere. The table below separates what SAPS charges from what the business has to put in place before SAPS will register it.
| Cost item | What it is | Cost |
|---|---|---|
| SAPS registration | Form SAPS 601, dealer and recycler | Free |
| SAPS renewal | Every five years, on form SAPS 601(e) | Free |
| Trading entity | Optional: individuals can register, but many dealers trade through a company registered with CIPC | Set by CIPC |
| Premises | A fixed address SAPS can inspect, with secure storage; one registration per premises | Varies by size and location |
| Weighing and record keeping | Scales, and a register of every transaction kept for at least five years | Varies |
| Waste management licence | Needed under NEMWA for some larger sorting and processing operations | Varies by operation |
Sources: Second-Hand Goods Act 6 of 2009; SAPS statement on renewal of registration, 4 April 2017. CIPC fees change from time to time, so confirm current amounts before budgeting.
What does the application require?
The application is made on form SAPS 601, lodged with the office of the designated second-hand goods officer at the police station serving the area where the business will operate, as set out in regulation 2 of the Act’s regulations. Under sections 4 and 5 of the Act, the application must include:
- two identity photographs of the applicant;
- the applicant’s name, residential address and identity number;
- the trading name and the address of every premises;
- for a company, close corporation, trust or partnership, the details of its managers or partners.
SAPS may also ask for further information and may take the fingerprints of the applicant and of managers. Supporting documents follow a checklist that SAPS publishes on its website, and the police inspect the premises as part of the process.
Who cannot be registered?
Section 14 of the Act disqualifies anyone who, in the previous five years, was sentenced to imprisonment without the option of a fine for fraud, theft, corruption or another offence involving dishonesty. It also disqualifies anyone under 18, an unrehabilitated insolvent and anyone who does not permanently live in South Africa. A company or trust cannot be registered if a disqualified person has an interest in it.
How long does a scrap metal registration last?
Five years from the date the certificate is issued, under section 7(5) of the Act. Renewal is not automatic. Under section 11(1) of the Act, a renewal application on form SAPS 601(e) must be lodged no more than 180 days and at least 90 days before the registration ends. Under section 11(4), a registration renewed in time stays valid until a decision is made. SAPS has stated that if the window is missed, the registration is treated as terminated and the dealer may not keep trading.
When to renew a scrap metal registration: a worked example
Because registration runs on a five-year cycle, a certificate someone shows you may be several years old and still valid, or it may have lapsed. The date on the certificate is the thing to look at, not the fact that one exists.
Do you also need a NEMWA waste licence?
It depends on the activity and its scale. The National Environmental Management: Waste Act (NEMWA) governs how waste is stored, treated and processed, and it is separate from SAPS registration: SAPS deals with the trade in second-hand goods, while NEMWA deals with the environmental handling of the material.
Under the list of waste management activities published as Government Notice 921 in November 2013:
- sorting, shredding, grinding, crushing, screening or baling general waste at a facility with an operational area over 1,000 m² needs a waste management licence;
- storing general waste at a facility that can hold more than 100 m³ falls under Category C, which means complying with national norms and standards;
- scrapping or recovering motor vehicles at a facility over 500 m² also falls under Category C.
Small collectors who sell on to a larger yard usually fall below these thresholds. The list has been amended since 2013, so confirm the current position with the provincial environmental department before you set up.
What does the Act require when someone sells scrap metal?
Sellers do not need to register, but the Act still applies to every sale. These rules matter to anyone selling to a yard:
- the seller must give their full name and physical address and show an original identity document or passport, which the dealer records (section 21);
- a dealer may not buy from anyone under 18 (section 23);
- a dealer may not pass on or change the form of goods until seven days after buying them (section 23);
- anyone selling cable with a burnt cover must be able to give a reasonable explanation for it (section 25);
- the dealer must keep the register and copies of ID for at least five years, and the police inspect each registered premises at least once a year (sections 21 and 28).
Selling scrap metal to South Group Recycling
Every South Group Recycling branch works to these rules, so a sale is quick when you come prepared:
- bring an original identity document or passport, and have your physical address ready, so the sale can be recorded;
- sort your metal by grade where you can, because clean, separated metal is priced higher than mixed loads;
- expect every transaction to be documented;
- for larger loads, book a collection instead of delivering.
Metal is bought at four branches:
- Cape Town – 2 Warbler Close, Unit 2, Montague Gardens, Cape Town, 7442
- Johannesburg – Unit 8, 7 Mastiff Street, Linbro Business Park, Sandton, 2090
- Durban – 65 Marshall Drive, Unit 4, Mount Edgecombe, Durban, 4300
- Pretoria – 27 Henrico Road, Rosslyn, Akasia, Pretoria, 0182
How can you check whether a scrap metal buyer is registered?
Ask to see the certificate. A registered dealer has one, and producing it on request is routine. Four checks separate a registered buyer from an unregistered one:
- Can the business show a registration certificate under the Second-Hand Goods Act, and is it less than five years old?
- Does the certificate cover the address you are selling at?
- Does it operate from a fixed address you can visit?
- Does it ask for your ID and issue documentation showing what was bought, from whom and at what price?
A buyer who passes all four can be checked. One who cannot is a buyer whose paperwork problems become the seller’s problems if the material is ever traced.
South Group Recycling is NEMWA certified, operating under the National Environmental Management: Waste Act, and is a Level 1 B-BBEE contributor. Metal is bought through four registered branches in Cape Town, Johannesburg, Durban and Pretoria, each at a fixed address, and every transaction is documented.
Conclusion
The registration itself costs nothing. Setting up a business that can hold one costs a great deal more, and that is the figure worth working out before committing to the trade. For anyone selling rather than starting a yard, the practical takeaway is simpler: the registration exists, it is checkable, and asking to see it takes one question.
If you are selling scrap metal and want to know what it is worth before you commit to a buyer, our current price guide sets out rates per kilogram by grade. To sell through a registered branch, see where to bring scrap metal or book a collection.
FAQ
How much is a scrap metal licence in South Africa?
There is no application fee. SAPS has confirmed that renewal of registration as a second-hand goods dealer or recycler is free of charge, and guidance on a first application lists no fee either. The real costs sit around the registration: premises SAPS can inspect, scales and record keeping, and in some cases a waste management licence under NEMWA.
Do I need a licence to sell scrap metal in South Africa?
No. Registration applies to the business buying the metal, not to the person selling it. A seller must still give the dealer their full name, physical address and an original identity document or passport, and the dealer must record those details for every transaction.
What is the Second-Hand Goods Act?
The Second-Hand Goods Act 6 of 2009 is the South African law that governs trade in second-hand goods, including scrap metal. It requires dealers and recyclers to register with SAPS, keep a register of every transaction for at least five years and allow police inspection. Dealing without registration can lead to a fine or up to 10 years in prison.
How long does a second-hand goods registration last?
Five years from the date the certificate is issued. Under section 11 of the Act, a renewal application must be lodged no more than 180 days and at least 90 days before the registration ends. If the window is missed, SAPS treats the registration as terminated.
Do I need a NEMWA licence as well as SAPS registration?
It depends on the activity and its scale. Under the list of waste management activities published in 2013, sorting, shredding or crushing general waste at a facility larger than 1,000 m² needs a waste management licence, while some storage and vehicle-scrapping activities instead follow national norms and standards. Confirm current thresholds with the provincial environmental department.
How do I check if a scrap metal buyer is registered?
Ask to see the registration certificate and check the date on it, because a registration lasts five years. Check that the certificate covers the address you are selling at, since each premises needs its own registration, and that the buyer records your ID and the details of the sale.
Where do I apply for scrap metal registration?
Applications go to the designated second-hand goods officer at the police station in the area where the business operates, on form SAPS 601. A business that recycles controlled metal registers as a recycler as well as a dealer, and each premises needs its own registration.
