What is B-BBEE certificate?
Being a Broad-Based Black Economic Empowerment (B-BBEE) compliant business is a certification that all businesses in South Africa should have.
What does B-BBEE Level 1 mean?
100% owned black EME are level 1 compliant which translates to 135% procurement recognition. What this means is that with an annual turnover of between R10 million and R50 million, you are categorized as a Qualifying Small Enterprise(QSE).
How much does a B-BBEE certificate cost?
CIPC B-BBEE certificates are free of charge. CIPC only provides B-BBEE certificates to Exempted Micro Enterprises; turnover of no more than R10 million. A certificate is only valid for a year and cannot be renewed.
Is it compulsory to have a BEE certificate?
Though BEE exempt certificates are not compulsory, they are certainly recommended as proof of Level 4 contributor status. The certificates also serve as proof of 100% B-BBEE procurement recognition.
Can a sole proprietor get a BEE certificate?
This means that most sole proprietors will qualify as EME’s, therefore providing them with automatic recognition status. EME and QSE entities which are at least 51% black owned, qualify as Level 2 contributors to B-BBEE, and EME and QSE entities which are 100% black owned qualify as Level 1 contributors.
How do I get my B-BBEE rating?
The BEE scoring levels is explained below….This comprises three easy steps.
- Completion of Documentation and BEE Verification planning.
- Gathering of Evidence according to the 5 elements of relevance.
- Verification of Evidence and calculating BEE Compliancy.
How is the B-BBEE rating calculated?
BBBEE compliance is determined according to the number of points a business scores on the generic scorecard. The more points it scores, the higher its level of compliance. exceed a particular target, you can claim the full number of points allocated to it.
How long does it take to get a B-BBEE certificate?
On average, this is no more than one to two months a company will be notified of the requirement of a specific BEE level for the required business transaction.
Is B-BBEE a legal requirement?
B-BBEE compliance for companies is not a legislative requirement. Companies are not required to disclose their B-BBEE status or verify their status. It is seen as business requirement.
How do I get a bee exemption certificate?
The enterprise needs to submit an auditor certificate, or one issued by a verification agency or accounting officer to obtain the BEE EME exempt certificate. You can complete an affidavit, which must be signed by a Commissioner of Oaths to serve as the certificate.
What are the benefits of being BEE compliant?
Benefits of B-BBEE
- More value-added goods and services.
- More employable people (Skills Development).
- Decrease in crime.
- More people productively employed.
- Entry into the global market and increased foreign investment.
Exempted Micro Enterprises (Private Companies / Close Corporations) with a turnover of no more than R10 million can use this platform to register for a B-BBEE certificate at no cost. CIPC B-BBEE certificates are free of charge. CIPC only provides B-BBEE certificates to Exempted Micro Enterprises; turnover of no more than R10 million.
When does a company qualify for a BEE certificate?
If a company has a turnover of more than R10 million and less than R50 million, the company will qualify for either a Level 1 / Level 2 BEE Certificate IF the black ownership is more than 50% For a QSE with black ownership of 51% but less than 100%, a Level 2 Contributor applies
Can I apply for a B-BBEE certificate for someone else?
Once expired a new application must be filed. Only directors/members of entities are allowed to apply for B-BBEE certificates, no intermediaries or third parties. You are not allowed to apply for a B-BBEE certificate on behalf of someone, doing so is a criminal offence, and could lead to legal proceedings.
What is an exempt micro-enterprise under B-BBEE?
If the Exempt Micro-Enterprise is 51 – 99% black owned, it is promoted to a “Level Two Contributor” having a B-BBEE procurement recognition of 125% If the Exempt Micro-Enterprise is 100% black owned, it is promoted to a “Level One Contributor” having a B-BBEE procurement recognition of 135%