Can I start a formal business in South Africa using a Lesotho Exemption Permit (LEP), or do I need a Business Visa? A practical guide for Lesotho nationals on LEP rights, business registration with CIPC, bank accounts, tax, and when a regular visa becomes necessary.

If you are a Lesotho national living in Mzansi and wondering if you can open your own shop or company, the answer is mostly yes, but there are things you must understand about the Lesotho Exemption Permit (LEP). Many people get confused between having a special permit and a formal Business Visa, especially since the Department of Home Affairs has been changing rules lately to help fix the backlog. While the Lesotho Exemption Permit (LEP) allows you to work and do business, there are specific steps you must take with the CIPC and the bank to make sure everything is legal and you don’t get into trouble with the law.

Important details about the Lesotho Exemption Permit (LEP) and business rules

• Main Institution: The South African Department of Home Affairs (DHA) is the body that handles all permit issues.
• Expiry Date: The current Lesotho Exemption Permit (LEP) has been extended and is valid until 29 November 2025.
• Registration Body: The Companies and Intellectual Property Commission (CIPC) is where you must register a formal business.
• Key People: Dr. Leon Schreiber is the current Minister of Home Affairs, and he has been working on making permit processes faster.
• Locations: This applies to all Lesotho nationals living anywhere within the borders of South Africa.
• VFS Global: This is the private company that handles the physical applications and fingerprinting for these permits on behalf of the government.

Understanding your rights under the Lesotho Exemption Permit (LEP)

For a long time, people from Lesotho have been contributing to the South African economy. If you have a Lesotho Exemption Permit (LEP), the document itself usually says that the holder is allowed to work, study, or conduct business. This is very different from a regular visitor’s visa which strictly says you cannot work. Because your permit says “conduct business,” you have the right to start a small business like a spaza shop, a car wash, or even a consulting firm. You do not necessarily need to apply for a formal Business Visa, which is much harder to get because it requires you to have at least R5 million to invest in the country.

However, if you want to make your business formal, you have to register it with the CIPC. To do this, you will need your valid Lesotho passport and your permit. You can find more updates on how these regulations affect foreigners in South Africa by checking out the latest trending news online. Many people find that opening a business bank account is the hardest part because banks are very strict. They will want to see that your permit is not expired and that it is verified by the Department of Home Affairs. If your permit is about to expire, the bank might give you problems, so always keep an eye on those extension dates.

One thing you must remember is that even though the Lesotho Exemption Permit (LEP) allows you to run a business, it does not lead to Permanent Residency. It is a temporary “concession” permit. If you want to stay in South Africa forever and grow a very big company, you might eventually need to look at moving over to a regular Business Visa or a General Work Visa if you qualify. But for now, as long as your LEP is valid and you follow the tax laws of SARS, you are good to go and can grow your hustle legally in Mzansi.

Common questions about Lesotho permits and business

• Can I register a company on the CIPC website with an LEP?
  Yes, you can register a private company (Pty Ltd) using your Lesotho passport number. However, you might need to visit a CIPC office or use an agent if the online system asks for a South African ID.
• Do I need R5 million to start a business with my permit?
  No, the R5 million requirement is only for those applying for a formal Business Visa. With an LEP, you can start a business with whatever amount of money you have.
• Can I open a business bank account with my Lesotho permit?
  Yes, you can, but it depends on the bank. Most big banks like FNB, Standard Bank, or Nedbank will allow it if your permit is valid for more than 6 months and you have proof of address.
• What happens if my LEP expires while I am running my business?
  You must follow the instructions from Home Affairs. Currently, they have extended the permits until November 2025. You must make sure you apply for the new extension or the next permit they offer before the deadline.
• Must I pay tax if I have a small business on an LEP?
  Yes, anyone doing business in South Africa is supposed to register with SARS and pay tax if they earn above a certain amount. Being a permit holder does not excuse you from tax.
• Can I travel to Lesotho and back if I am running a business here?
  Yes, you can travel between the two countries. Just make sure you carry your valid passport and your original permit card so the border officials can let you back in without issues.