Text Box: The Eisenberg Newsletter South African Immigration & Nationality Text Box: Volume 3 Text Box: Page # Text Box: Business Permits - Few Changes, More Hoops Text Box: The amendments to the Act have introduced two major changes to the business permit (section 15) and own-business permanent residence (section 27(c)) regimes. Most significant is the mandatory requirement that the underlying business enterprise in respect of which an application is based must employ or undertake to employ at least five South African citizens and/ or permanent residents on a permanent basis (Regulation 12(2)(b) and 23(5)(b)). The peremptory 24-month filing of proof that the applicant has invested the financial/capital contribution (as prescribed, reduced or waived) neglects to include reference to the minimum employment mandate. However, the Department can (arguably) “for good cause”, make the employment requirement a condition of the permit (section 10(5), read with Regulation 7(8)). The second such change is the mandatory filing of a business plan outlining the feasibility of the business, both in the short and in the long term (Regulations 12(2)(a) and 23(5)(a)). No further guidelines are given as to the specific content of the plan. The applicant requires to presume a level of understanding and analytical and evaluative ability within the Department of Home Affairs when preparing the plan. Prior to the coming into force of the Immigration Act in April 2003, the Department demanded detailed business descriptions (“plans”) with “own-business” work and permanent residence applications. Although the Aliens Control Act of 1991 was then in force, a highly discretionary regime of immigration control administered the rules. Officials were free to determine the filing of any type of document as part of any application while the statute and its regulations remained silent. Because the level of understanding of financial and business data was perceived to be very low at the level of application processing, the requirement to file detailed business plans was scrapped by the Immigration Act. It is therefore surprising that the new Minister has seen fit to re-introduce it into the new regulations. The Minister may be well advised to eradicate the need for a detailed business plan on the basis that few officials, if any are capable of interpreting them, especially if they contained complex financial information and calculations. Alternatively, the Minister should introduce guidelines to assist with the structuring of business plans to meet Departmental expectations.