Business Licences Act 2002
No. 23 of 2002
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BUSINESS LICENCES ACT 2002
Business Licences Act 2002 Arrangement of Sections
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BUSINESS LICENCES ACT 2002
Arrangement of Sections
Section
1 Short title and commencement.........................................................................5
2 Act binds the Crown ........................................................................................5
3 Interpretation....................................................................................................5
4 Business person shall hold licence...................................................................6
5 When business licence shall not be issued.......................................................6
6 Business Licensing Officer ..............................................................................7
7 Application for business licence ......................................................................7
8 Issue or refusal of business licence..................................................................7
9 Licence conditions ...........................................................................................7
10 Duration of licence...........................................................................................8
11 Cancellation of business licence ......................................................................8
12 Appeals ............................................................................................................8
13 Licence not transferable...................................................................................8
14 Licence may be amended.................................................................................8
15 Location of business activity ...........................................................................9
16 Business licence shall be displayed .................................................................9
17 Production of licence .......................................................................................9
18 District Officer shall make annual return.........................................................9
19 Offences and penalties .....................................................................................9
20 Legal proceedings ..........................................................................................10
21 Power to amend Schedule I............................................................................10
22 Business Licence Register .............................................................................10
23 Regulations ....................................................................................................10
24 Repeal and saving ..........................................................................................11
Arrangement of Sections Business Licences Act 2002
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SCHEDULE I 12
PROHIBITED ACTIVITIES...............................................................................12
Business Licences Act 2002 Section 1
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BUSINESS LICENCES ACT 2002
No. 23 of 2002
AN ACT PROVIDING FOR THE LICENSING OF BUSINESS
ACTIVITIES
I assent,
TAUFA'AHAU TUPOU IV,
23rd December, 2002
[14th October, 2002]
BE IT ENACTED by the King and Legislative Assembly of Tonga in the Legislature
of the Kingdom as follows:
1 Short title and commencement
(1) This Act may be cited as the Business Licences Act 2002.
(2) This Act shall come into force on a day proclaimed by His Majesty in
Council.
2 Act binds the Crown
This Act binds the Crown.
3 Interpretation
In this Act, unless the context otherwise requires —
Section 4 Business Licences Act 2002
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“business activity” means any activity carried on by a business person
but does not include the hawking or selling of —
(a) fish;
(b) agricultural produce;
(c) native articles,
which are the produce of, or articles of Tonga.
“business licence” means a business licence issued under section 8;
“Business Licensing Officer” includes a person delegated by the
Secretary under section 6 to act as such;
“Business Licence Register” means the register of business licences
established under section 22;
“business person” means a person carrying on any business activity for
the purpose of generating revenue in trade, commerce or industry, and
includes any trade, profession or calling;
“foreign investment registration certificate” means a foreign
investment registration certificate issued by the Secretary under section 8
of the Foreign Investment Act 2002;
“foreign investor” has the meaning given in section 2 of the Foreign
Investment Act 2002;
“licensee” means the holder of a business licence issued under section 8;
“Minister” means the Minister of Labour, Commerce and Industries;
“Ministry” means the Ministry of Labour, Commerce and Industries;
“principal place of business” means the full postal and geographic
address specified by a licensee or applicant in his application under
section 7;
“prohibited activity” means an activity included in Schedule 1;
“Secretary” means the Secretary for Labour, Commerce & Industries;
“trade” includes importing and exporting.
4 Business person shall hold licence
Subject to this Act, every business person in the Kingdom carrying on a business
activity shall hold a valid business licence.
5 When business licence shall not be issued
A business licence shall not be issued —
Business Licences Act 2002 Section 6
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(a) to a person carrying on a prohibited activity;
(b) to an individual under 18 years of age;
(c) to a partnership where any one of the partners is under 18 years of
age; or
(d) to a foreign investor who does not hold a valid foreign investment
registered certificate.
6 Business Licensing Officer
(1) The Secretary shall be the Business Licensing Officer responsible for the
issuing of business licences under this Act.
(2) The Secretary may delegate, in writing, any of his powers under this Act
to one or more officers in the Ministry.
7 Application for business licence
(1) A business person who applies for a business licence shall do so in the
prescribed form in the Regulations.
(2) Every application shall be accompanied by the fee prescribed in the
Regulations.
(3) Every application by a foreign investor shall be accompanied by a valid
foreign investment registration certificate.
8 Issue or refusal of business licence
The Business Licensing Officer shall consider each application made under
section 7 provided it does not contravene section 5, and issue a business licence
to the applicant as soon as practicable.
9 Licence conditions
A business licence shall be issued —
(a) for the category or categories of business activity specified in the
licence;
(b) subject to the regulations and any conditions endorsed on the
licence.
Section 10 Business Licences Act 2002
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10 Duration of licence
(1) A business licence shall be valid for the period ending on 31st December
next following the date of its issue unless renewed.
(2) If a licensee complies with the conditions endorsed on the business
licence under section 9(b) and pays the prescribed fee for renewal the
business licence shall be valid until 31st December in the year next
following the renewal date.
11 Cancellation of business licence
(1) A business licence may be cancelled by the Business Licensing Officer
under any of the following conditions, if —
(a) The application form contains any material misrepresentation or
false statement;
(b) any information given in the application for the business licence
was materially incorrect so as to create a false impression of the
ownership of the business or the nature of its business activity;
(c) the licensee carries on a prohibited activity;
(d) a condition imposed under section 9(b) is breached; or
(e) the licensee is convicted of an offence under this Act.
12 Appeals
(1) Any holder of a cancelled business licence shall have the right to appeal
the decision under section 11, to the Minister whose decision shall be
final.
(2) All appeals shall be filed within fourteen days of the decision.
(3) Any person appealing under this section shall have the right to be heard
by the Minister.
13 Licence not transferable
A business licence is not transferable.
14 Licence may be amended
(1) Subject to this Act, a business licence may be amended on written
application to the Business Licensing Officer.
(2) The licensee shall inform the Business Licensing Officer in writing of any
changes within 30 days.
Business Licences Act 2002 Section 15
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(3) If a licensee fails to inform the Business Licensing Officer under
subsection (2) the Business Licensing Officer may impose a penalty.
15 Location of business activity
(1) If a business licence does not specify a place or premises at which the
licensee shall carry on its business activity, the licensee may carry on its
business activity in any part of the Kingdom.
(2) If a business licence specifies a place or premises at which the licensee
shall carry on its business activity, the licensee shall carry on its business
activity at that place or those premises.
16 Business licence shall be displayed
A business licence shall be displayed in a conspicuous place in or at the
licensee's principal place of business.
17 Production of licence
The Business Licensing Officer, any Police Officer or any District Officer who
has reason to believe a business person is required to hold a business licence
may demand from the person carrying on the business activity the production of
his business licence.
18 District Officer shall make annual return
Every District Officer shall by the end of February each year furnish the
Business Licensing Officer with a return showing the names, occupations and
places of abode of all persons in the District Officer's village or district who
have carried on or who have been exercising any business activity at any time
during the previous calendar year.
19 Offences and penalties
(1) Any person who carries on a business activity without a business licence
commits an offence, and is liable upon conviction to a fine not exceeding
$1000 and in default of payment to imprisonment for a period not
exceeding 18 months.
(2) If a person who has been required under section 17 to produce for
inspection a business licence does not –
(a) produce a business licence within 2 working days;
Section 20 Business Licences Act 2002
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(b) permit the officer to read and examine the business licence when
produced,
he commits an offence, and is liable upon conviction to a fine not
exceeding $1,000 and in default of payment to imprisonment for a period
not exceeding 18 months.
20 Legal proceedings
(1) All offences against this Act shall be prosecuted before the Magistrate's
Court in the District where the offence occurs.
(2) In a prosecution under this Act for an offence under section 19(1), the
charge is deemed proved if it is shown to the satisfaction of the Magistrate
that the accused person did carry on the business, unless the accused
person produces the business licence to the Court or shows to the
satisfaction of the Magistrate that a business licence has been issued to
that person by the Business Licensing Officer.
21 Power to amend Schedule I
His Majesty may by Order in Council, amend the prohibited activities specified
in Schedule 1.
22 Business Licence Register
(1) The Business Licensing Officer shall be responsible for establishing and
maintaining in accordance with this Act and the Regulations, a register of
business licences.
(2) The Business Licence Register shall be available for inspection by the
public during business hours and copies of entries shall be provided, upon
payment of the prescribed fee.
(3) The Business Licensing Officer shall within seven days record any
amendments or changes made under section 14 on the register.
23 Regulations
(1) The Minister may, with the consent of Cabinet, make regulations for the
proper and efficient administration of this Act.
(2) Without limiting the power in subsection (1), regulations may be made
under this section for the following purposes —
(a) forms used under this Act;
(b) fees payable under this Act;
Business Licences Act 2002 Section 24
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(c) the business activities for which a business licence may be issued
subject to conditions;
(d) the establishment and maintenance of the Business Licence
Register; and
(e) penalties under Section 14.
24 Repeal and saving
(1) The Licences Act (Cap. 47) is repealed.
(2) A license issued under the repealed Act shall be valid until 31st December
of the year in which this Act commences.
(3) Subject to subsection (2) the provisions of this Act apply to the holder of a
licence issued under the repealed Act as if the holder were a licensee
under this Act.
Passed in the Legislative Assembly this 14th day of October, 2002.
SCHEDULE I Business Licences Act 2002
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SCHEDULE I
(Section 3)
PROHIBITED ACTIVITIES
1. Storage, disposal or transport of nuclear or toxic waste
2. Pornography
3. Export, import or production of any products that are prohibited under the Laws of Tonga.
4. Prostitution
5. Processing or export of endangered species
6. Production of weapons of warfare.
