Management of the trendy ZAR nightclub in Cape Town have been warned to obtain valid operating licences or face closure.

The night spot, which opened in January this year, is operating without liquor, entertainment and business licences.

The club, which is owned by business tycoon Kenny Kunene, is housed at the Cape Royale Hotel in Greenpoint.

It is believed the club is operating on the hotel's licences.

Mayoral Committee Member for Safety and Security JP Smith said nightclub management will be issued with a notice.

"As for the business licence, when they get the first notice it will give them a warning and a minimal time to comply. Failing so, we will take them to court," he said.

Smith said the SAPS Liquor Unit will also issue ZAR management with a final notice.