Essential services: how businesses that are not companies may operate during lockdown

UPDATE: Small Business Development Minister, Khumbudzo Ntshavheni, has issued new directives that change the position of sole proprietors or heads of small businesses.

This article previously stated that sole proprietors or heads of small businesses need a permit in terms of the regulations to move around for work purposes (see below). If this describes you, you will now also need an affidavit indicating that your business offers essential goods and/or services. In addition to that, you will need documentary proof of the existence and nature of your business, e.g., a CIPC registration certificate, a sole trader document issued by SARS or certified copies of the trade certificate of the owner or college certificate in the related qualification.

For a full update, read: What permit my small business needs to keep trading during lockdown level 4.

On April 29, Caxton Local Media reported:

If you are the owner of a South African business that is not a company, you do not need to apply for a CIPC certificate in order to be viewed as the provider of essential services during lockdown.

This is according to a recent media release published on the South African government website.

South Africa has been under lockdown for a month in order to limit the spreading of Covid-19 infections. During this period, only businesses classified as “essential service providers” have been allowed to continue their operations.

Draft regulations have been issued and May 1 will see the implementation of slightly relaxed lockdown rules. New categories of businesses will be added to the list of entities deemed to deliver essential services.

Many business owners, for example, sole proprietors, have been unsure whether they need to apply for CIPC essential service certification prior to continuing with their business operations. (This is the procedure prescribed for companies registered with the CIPC.)

Also read: Five steps to apply for an essential services permit during level 4 lockdown

Although this is not a requirement (for those offering essential services), businesses that are not companies are still expected to stick to lockdown rules such as social distancing and regular sanitising. Employees who travel while performing essential services must be issued with a letter from their employer and be able to provide documentary proof of their identity.

Government has issued a draft form that employers may fill out for their employees.

Click here for an example of such a letter.

Notice: Coronavirus reporting at Caxton Local Media aims to combat fake news

Dear reader,
As your local news provider, we have the duty of keeping you factually informed on Covid-19 developments. As you may have noticed, mis- and disinformation (also known as “fake news”) is circulating online. Caxton Local Media is determined to filter through the masses of information doing the rounds and to separate truth from untruth in order to keep you adequately informed. Local newsrooms follow a strict pre-publication fact-checking protocol. A national task team has been established to assist in bringing you credible news reports on Covid-19.
Readers with any comments or queries may contact National Group Editor Irma Green (irma@caxton.co.za) or Legal Adviser Helene Eloff (helene@caxton.co.za).