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Interpretation of regulations pertaining to sole proprietors, creative individuals, craft persons

Wednesday, 20 May 2020  
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Interpretation of regulations pertaining to sole proprietors, creative individuals, craft persons wishing to operate under the level 4 lock down.

 

Please note that the CDI encourages all members to stay at home / work from home if they can due to the COVID-19 pandemic. Those that resume operations and retail are requested to please check the government's latest workplace health regulations to keep all staff and customers safe.

 

The following is the advice of the Red Tape Reduction Unit of the Western Cape Government on the interpretation of regulations under the level 4 lockdown pertaining sole proprietors within the craft and design sector:

 

Firstly check if your business is permitted to operate in terms of the level 4 lockdown regulations dated 29 April 2020 (see Table 1 – after point 30.5):   


https://www.gov.za/documents/disaster-management-act-regulations-29-apr-2020-0000


If you are permitted to operate and you are:

1.

Sole Proprietors (not registered with CIPC) and operates a business as per the para 2.3 of the attached directive (See here: 43306_12-5_SmallbusinessDev.pdf):


According to the Regulation 12.2 (a) (i) of the regulations issued by the Department of Small Business Development dated 12 May 2020 the sole proprietors must complete an affidavit indicating that he or she is performing a service permitted in terms of the Regulations.

The affidavit should contain the following information (an example is here: Example of an affidavit DSBD):

  • Business name and address
  • That you are a sole proprietor not registered with the CIPC
  • List what essential product business sells or what essential service business renders in terms of Table 1 of the regulations
  • Your name and ID number; and
  • Your employees’ names and ID numbers (if applicable).


It is suggested that the Regulations be attached to the affidavit, and that the applicable essential product or service be highlighted (e.g: Part L( 2) and B(33) in Annexure D for plumbers). They should also attach any document issued by SARS, or certified copies of the trade certificate of the owner or college certificate in the related qualification (trades), or other documentary proof of the existence of, and the nature of, the business. Essential services permits must be issued to employees (Form 2 of the regulations – permit form 2.docx), if relevant.

 



2. 
Sole Proprietors or Partnerships (not registered with CIPC) – not a business identified in the DSBD directive

We suggest that the owner completes the attached affidavit (Covid-19 -AFFIDAVIT) and have it commissioned at the police station. 

We further suggest that they attach a copy of the Regulations (and highlight the applicable section which applies to their business) to the affidavit and have it with them at all times when operating, which will then serve as a permit to operate.

They should also attach any SARS document or other proof of the existence of the business if available. If they have employees, they should issue the necessary essential services permit (
Form 2 as contained in the Regulations - permit form 2.docx) to the employees.

 

 


 

In addition to this the following is advice from Webber Wentzel applicable to artists, crafts persons or creative individuals wishing to access their studios etc.

 

According to the relevant regulations under Level 4, individual creatives can go to their studios to work. There are a couple of different scenarios: 

 

  • Firstly, if the craftsperson has a business entity that is registered with the CIPC, such as CC or a (Pty) Ltd, the business needs a permit from the CIPC, and the employees need a Form 2 permit. The CIPC has an online portal where businesses apply for such a permit. The business (in the form of the "head of the institution") issues Form 2 permits to employees. A blank Form 2 is available to download here

 

  • If the only employee of such a CIPC-registered business is the creative, the business must still issue a Form 2 permit to such an employee.

 

  • Creatives who do not have a business registered with the CIPC, but who work on their own, or who are sole proprietors, even if they employ one or a few craftspeople, do not qualify for CIPC permits, and also cannot issue Form 2 permits. The attached letter from Webber Wentzel is not a Form 2 permit. However, it may be useful to be used by creatives who find themselves in this situation.  


Please see the attached letter prepared by Webber Wentzel for artists:

WW Letter for artists

 




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