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"Making Significant Changes Together"

Exempt Micro Enterprises (EME's) are businesses with an annual turnover of below R10 million. This means that they are exempt from having to comply with the B-BBEE scorecard and merely need to prove that their annual turnover is below the required turnover threshold.

 

They are thus afforded an automatic Level 4 B-BBEE status. If an entity can also prove that they are 51% Black Owned they are awarded an automatic Level 2 B-BBEE status. If they are 100% Black Owned they are awarded and automatic Level 1 B-BBEE Status. 

The Modified Flow-Through Principle may not be applied when using the Enhancement method. 

 

EME’s require a BEE Certificate in terms of the original Codes but in terms of the Amended Codes only an affidavit confirming their B-BBEE Status. 

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* Please bare in mind that the thresholds for qualification as an EME in terms of the different sector codes, are sometimes different to those adopted by the general Amended Codes.

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We will require the following documents:

- Business registration details

- CK2, CM1 or CoR14.3

- Proof of turnover

- Signed Financial Statements, or

- Signed Management Accounts with affidavit, or

- Bank statements for the 12 months of the last financial period.

- Value adding supplier: Proof of your VAT registration

- Are you claiming black ownership? (optional)

- Share register with certificates, Shareholders agreement and certified copies of shareholders’ IDs.

SMALL ENTERPRISE (EME)

MEDIUM ENTERPRISE (QSE)

Qualifying Small Enterprises (QSE's) are businesses with an annual turnover of between R10mil and R50 mil. However, the thresholds for qualification as a QSE, in terms of the different sector codes sometimes differ to those adopted by the general Amended Codes. In terms of the Amended Codes, QSE’s are to be measured in all 5 elements of the QSE scorecard as depicted below:

      Element                                                   Weighting Points

      Ownership                                                          25

      Management Control                                         15

      Skills Development                                             25 + 5 Bonus Points

      Enterprise & Supplier Development                   30 + 3 Bonus Points

      Socio-Economic Development                           5

LARGE ENTERPRISE

Large Enterprises are businesses with an annual turnover in excess of R50 mil per annum. This means that they must be measured on all seven elements of the scorecard. Important to note, is that the thresholds for qualification as a Large enterprise in terms of the different sector codes, will sometimes differ to those adopted by the general Amended Codes. The elements and weightings of the large enterprise generic codes scorecard are as follows:

      Element                                                   Weighting Points

      Ownership                                                         25

      Management Control                                        19

      Skills Development                                            20 + 5 Bonus Points

      Enterprise & Supplier Development                  40 + 4 Bonus Points

      Socio-Economic Development                          5

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