Broad-Based Black Economic Empowerment is measured against a scorecard, and what a business must do depends principally on its annual turnover. Exempted micro enterprises below a turnover threshold qualify automatically at a recognition level based on black ownership, without being scored.
B-BBEE is not compulsory in the sense that a business must comply. It becomes practically necessary where you want to do business with government or with large corporates, because your rating affects their scorecard and therefore their willingness to buy from you.
Business Requirements at a Glance
What is required depends on your turnover category.
- Exempted micro enterprises: automatic qualification, evidenced by a sworn affidavit, with the level based on black ownership
- Qualifying small enterprises: measured on a scorecard, with a sworn affidavit permitted where black ownership is high enough
- Generic enterprises: measured on the full scorecard by an accredited verification agency
- The scorecard elements: ownership, management control, skills development, enterprise and supplier development, and socio-economic development
- Sector codes, which replace the generic codes for businesses in certain sectors
- Priority elements, where failing to meet minimum thresholds results in discounting of your level
Registration and Legal Requirements
The turnover thresholds separating the categories are set in the codes and have been revised. Confirm the current thresholds rather than relying on figures published elsewhere.
Sector codes apply in place of the generic codes for businesses in sectors that have them, including construction, tourism, agriculture, property and others. Applying the wrong codes produces a meaningless result.
Documents and Ownership Information Required
For an exempted micro enterprise, a sworn affidavit confirming turnover and black ownership is sufficient. It must be commissioned and is valid for a year.
For enterprises requiring verification, you will need detailed records covering ownership, employment equity, skills spend, procurement and socio-economic development contributions across the measurement period.
Tax, Licence and Compliance Requirements
Verification for larger enterprises must be done by an accredited verification agency, and certificates are valid for a year.
Fronting, meaning misrepresenting black participation, is a criminal offence under the B-BBEE Act. This includes arrangements where black shareholders have no real economic interest or control, and it is actively prosecuted.
Your rating affects your customers scorecards, which is the practical mechanism driving compliance in supply chains.
Process, Deadlines and Ongoing Obligations
Establish your turnover category and whether a sector code applies before doing anything else. Effort spent measuring against the wrong framework is wasted.
For small enterprises, an affidavit is far cheaper than verification and is sufficient where you qualify. Do not pay for verification you do not need.
This page is general information and not legal advice. Confirm current thresholds and codes with the B-BBEE Commission or a qualified adviser.
Frequently Asked Questions
Is B-BBEE compulsory?
Not in the sense that a business must comply. It becomes practically necessary for doing business with government and large corporates, whose scorecards your rating affects.
What is an exempted micro enterprise?
A business below the turnover threshold, which qualifies automatically at a level based on black ownership, evidenced by a sworn affidavit rather than verification.
What is fronting?
Misrepresenting black participation, including arrangements where black shareholders have no real economic interest or control. It is a criminal offence.
Do I need a verification agency?
Only for enterprises above the affidavit thresholds. Smaller enterprises can use a sworn affidavit, which is far cheaper.
Confirm current turnover thresholds, applicable sector codes and scorecard requirements with the B-BBEE Commission or a qualified adviser. Browse all business and compliance requirements.