Before you start a business you need to register with the South African Revenue Services, Employees tax (PAYE), Value-Added Tax (VAT) and Unemployment insurance fund (UIF). For more details go to our Start-up Registrations section.
Certificate of Competence:
Government regulations state that a Certificate of Competence must be applied for in order to open funeral parlour. Before you submit an application for a Certificate of Competence, you must publish two notices in two different official languages in newspapers that circulate in the area in which such premises are situated.
This must be done 21 days before submitting the application. The applicant makes an application for a Certificate of Competence in writing to the Local Authority in whose area of jurisdiction the funeral undertaker’s premises will be situated.
The application must be accompanied by-
- A description of the premises and the location.
- A complete ground plan of the proposed construction or of the existing buildings on a scale of 1:100.
- A block plan of the premises on which north is shown indicating which adjacent premises are already occupied by the applicant or other persons and for what purpose such premises are being utilised or are to be utilised
- Particulars of any person other than the holder or any of his employees who prepares or will prepare corpses on the premises.
- Subject to the provisions of regulations R 237 of 8 February 1985, no person is allowed to prepare any corpse except on a funeral undertaker’s premises in respect of which a Certificate of Competence has been issued and is in effect.
Dealing with other issues
As a funeral home owner, you will have to deal with various insurance providers. It is important that you understand how funeral insurance cover works. Your staff must know how to assist the family in claiming the policy. Other matters you must have knowledge of are:
- Registration of Death.
- Purchasing of Graves.
- Cancelling of Identity Documents.
- Arrangements with Church and Minister.
- Crematorium protocol.
- Health Department documents.
How much capital is required?
To find out how much capital you will need and to determine what infrastructure is required can only be established through research. There is no fixed formula that will tell you how much money you need to set up a business.
How to write a business plan
For more information on how to write a comprehensive business plan, read Entrepreneur’s guide: How to Write a Business Plan: Step-by-Step Guide. Sample Business Plans: For more information on what should be included in your business plan.
Research the market
This is why you have to do research into the market, speak to funeral home owners, and ask questions such as how many mortuaries are in the area? What is the cremation rate versus burials? The most important step to take is to write your own business plan.
In doing research, you need to study the market in the area in which you are panning to operate your business. Services offered must be geared towards the needs of the community. Figure out what your competitive advantage is over the other funeral homes. This will help you prepare your marketing strategy, which is necessary in every business plan.