How to Get A BBBEE Certificate in South Africa?

A Black Economic Empowerment (BEE) certificate is a document that indicates the level at which a company complies with the BEE initiative. The certification basically lists various critical information including the name of a company, the address as well as the details of registration of the company assessed. The purpose of BBEEE is to empower previously disadvantaged or discriminated against people the ability to regain the lost ground as a result of their discrimination.

What is the validity period for the b-bbee certificate in South Africa?

The B-BBEE certificate is only valid for 12 months from date of issue and cannot be renewed. Once expired a new application must be filed.

How can a measured entity obtain a B-BBEE Certificate?

For EMEs:

• All EMEs are exempted from B-BBEE compliance and receive automatic B-BBEE Recognition Level 4.
• An EME which is at least 51% black owned automatically receive level 2 status and those which are 100% black owned receive level 1.
• EMEs only have to obtain a sworn affidavit or CIPC certificate.
• The sworn affidavit must be signed by a Commissioners of Oaths.

For QSEs:

• QSEs which are at least 51% black owned or 100% black owned are treated the same as EMEs, they receive automatic B-BBEE Recognition Levels 2 and 1 respectively and also have to only obtain a sworn affidavit.
• The rest of the QSEs (less 51% black shareholding) must be verified through an accredited verification professional.

For Large Enterprises:

• Large companies must be verified by an accredited verification professional.

How is B-BBEE classification determined?

B-BBEE classify entities based on annual turnover, namely:

• Start-up Enterprise. This is a recently formed or incorporated entity that has been in operation for less than one (1) year. A start-up enterprise does not include any newly constituted enterprise which is merely a continuation of a pre-existing enterprise;
• Exempted Micro-Enterprises (EMEs). This are entities that generate an annual turnover of R0 and less R10 million.
• Qualifying Small Enterprises (QSEs). These entities have an annual turnover of above R10 million and less R50 million.
• Large Enterprises, are entities with an annual turnover of above R50 million

What are the requirement to obtain a B-bbee certificate in South Africa?

The 5 criteria which are taken into account are listed below, with their respective weightings:

• Equity ownership (25% weighting)
• Management control (15% weighting, 4% bonus possible)
• Skills development (20% weighting, 5% bonus possible)
• Enterprise development (40% weighting, 4% bonus possible)
• Socio-economic development (5% weighting).