1) The Governing Law: Business Licensing & Registration Act, 2019
The Business Licensing and Registration Act (BLRA), 2019 is now the principal legislation for licensing businesses in Lesotho, replacing prior regulatory frameworks. It sets up a risk-based, simpler licensing regime intended to facilitate business entry, registration, and compliance.
A. Reserved Business Activities
The BLRA’s Statement of Objects emphasizes inclusivity and streamlined licensing. However, subordinate regulations explicitly reserve certain business activities, such as hairdressing and beauty treatments, for Basotho citizens, excluding even naturalized citizens and placing restrictions on foreign enterprise involvement.
Specifically, section 34 is enforcement-focused, reinforcing these reservations for 47 categories, including beauty services.
B. Foreign Business Requirements
Foreign-owned businesses (defined as those whose shareholders are 30% or more non-citizens) must meet additional thresholds when applying for permits:
- Provide evidence of capital investment of at least M2 million
- Demonstrate job creation for a minimum of six Lesotho residents
- Show strategic contributions to the economy and transfer of expertise to locals
2) Digital One-Stop Licensing System
Lesotho is modernizing business licensing by implementing a fully digital single-window platform for company incorporation, licensing, residency, and tax integration, hosted by the One-Stop Business Facilitation Centre (OBFC). This system aligns directly with BLRA, introducing QR-coded permits and inter-agency data sharing.
3) Summary: Key BLRA Provisions Affecting Beauticians
| Provision | Description |
|---|---|
| Reserved Activity | Hairdressing and beauty services are restricted to indigenous Basotho (and exclude naturalized citizens) under the 2020 regulations. |
| Foreign Business Permit | Requires M2M+ capital, local job creation, strategic economic contribution, technology transfer. |
| Business Identification | All businesses receive a Business Identification Card upon registration. |
| Digital Licensing | OBFC now offers an integrated digital system to streamline licensing and registration |
4) Updated Compliance Guide for Beauticians
A. Licensing Requirements and Process
- Check if “hair and beauty services” are reserved. If yes, only Basotho citizens (not naturalized) should hold the licence. Foreign applicants must partner or structure accordingly.
- Apply for a business permit, submit evidentiary documentation (capital, employment plan, etc.) if you’re a foreign-based applicant.
- Obtain your Business Identification Card (BIC) post-registration.
- Complete the process through OBFC’s digital single-window platform whenever available.
B. Premises Health, Safety & Municipal Compliance
Maintain hygienic, sterilized equipment, proper waste disposal, and safe water/ventilation. Obtain either:
- A Health Certificate upon inspection, or
- An Occupancy Certificate, depending on local rule.
C. Taxation
- Register for TIN and Business Identification Card.
- Use the OBFC platform to link tax systems seamlessly.
- Assess VAT obligations as per Revenue Services Lesotho thresholds.
D. Employment & Labour
- Ensure compliance with the Labour Act, 2024, including contracts, workplace policy, and fair treatment.
E. Cosmetic vs. Medical Services
- For beauty services only (manicures, facials, hair styling): no extra Act applies.
- For injectables, chemical peels, microneedling: compliance with the Medicines & Medical Devices Control Authority Act, 2023 is mandatory.
F. Customer Data & Privacy
- Adhere to the Data Protection Act, 2011, ensuring client data is handled securely and with consent.
5) Refined Compliance Checklist (with Legal Citations)
- Verify reservation status of beauty services under BLRA (2020 Regulations)
- Apply via OBFC, using the digital system, and get a Business Identification Card (BIC)
- If foreign, meet M2M capital + job creation + strategic-economic criteria
- Certify premises through health/occupancy inspection
- Apply for VAT and PAYE (if applicable) via RSL
- Prepare employment contracts and staff policies (Labour Act, 2024)
- Verify product categories for licensing needs, especially for medical-grade services
- Implement data privacy protocols (2011 Act)