The middle recognition levels are where most verified entities sit, and they are reached through the scorecard rather than through ownership alone. For a business that has never done a verification, the mid-range is the realistic first target.
This page sets out how the scorecard works and where the achievable points are for a business starting from nothing.
Business Requirements at a Glance
What a mid-range recognition level generally involves.
- A verified scorecard, where verification applies to your category
- Points achieved across the scorecard elements set in the Codes
- Meeting the sub-minimum requirements on the priority elements
- Compliance with any sector code applying to your industry
- Verification by a SANAS-accredited agency
- Supporting records for every claim made
- For smaller entities, an affidavit route may apply instead — confirm your category
- A valid document renewed before its expiry
Registration and Legal Requirements
B-BBEE is governed by the Broad-Based Black Economic Empowerment Act 53 of 2003 and the Codes of Good Practice issued under it, together with sector codes where a sector code applies. The B-BBEE Commission oversees compliance and the Department of Trade, Industry and Competition administers the framework.
Confirm the current thresholds, scorecard weightings and requirements with the Department of Trade, Industry and Competition, the B-BBEE Commission or a SANAS-accredited verification agency. The Codes and sector codes are amended, and third-party summaries go out of date quickly.
Establish your category first. Annual total revenue determines whether you are an Exempted Micro Enterprise, a Qualifying Small Enterprise or a large entity, and the smallest businesses may not need a verification at all. Confirm the current thresholds.
The scorecard elements broadly cover ownership, management control, skills development, enterprise and supplier development, and socio-economic development, with weightings set in the Codes. A Qualifying Small Enterprise scorecard differs from a large entity scorecard.
Priority elements carry sub-minimums. Failing a sub-minimum on a priority element discounts the overall level, which means a business can score the points for a level and be recognised at a lower one. Confirm which elements are priority for your category.
The achievable points for a starting business are usually skills development and socio-economic development, because both are spend-based and within your control. Ownership is structural and enterprise development takes a programme.
Fronting is a criminal offence. Misrepresenting ownership, control or participation to obtain or improve a B-BBEE status is prohibited under the B-BBEE Act, and it carries serious consequences for the entity, its directors and the person whose participation is misrepresented.
Documents and Ownership Information Required
What is generally required.
- CIPC registration documents and a current company profile
- A shareholders’ or members’ register with identity details
- Beneficial ownership information as filed with the CIPC
- Certified ID copies for directors, members and shareholders
- Annual financial statements or a signed turnover confirmation
- A SARS tax compliance status PIN
- Payroll records and employment equity data, where the scorecard requires them
- Records of skills development, procurement and enterprise development spend, where applicable
Tax, Licence and Compliance Requirements
Get a pre-assessment before committing to anything. A verification agency or consultant can assess where your score currently sits, which tells you what a level actually costs. Deciding on a target without that is guessing.
Skills development is the most accessible element for many businesses, because training you already do can count where it is properly structured and evidenced. Aligning existing training to what the Codes recognise, and recording it, converts spend you already make into points.
Socio-economic development is spend-based and relatively straightforward, and contributions to qualifying beneficiaries count where the Codes recognise them. Confirm what qualifies before donating.
Procurement scores without new spend in some cases, because buying from suppliers with good B-BBEE levels scores directly. Asking existing suppliers for their certificates costs nothing and can move the score.
Plan against the financial year. The scorecard measures over a period, so decisions taken late in the year barely register. Budget the spend at the start.
Keep records as you go. Unevidenced claims are not counted, and reconstructing a year of training and spend at verification is the most common reason a score disappoints.
Tax compliance is generally required alongside the B-BBEE document for tenders and procurement. Keep the SARS tax compliance status PIN current.
Process, Deadlines and Ongoing Obligations
Establish your category, check whether a sector code applies, and obtain a pre-assessment before deciding on a target level.
Start with what you already do. Training already delivered, suppliers already used and community contributions already made can frequently be counted where they are structured and evidenced correctly. That is the cheapest route to a first level.
Engage a SANAS-accredited agency for the verification itself, and allow time before the certificate is needed.
Never buy a level. A certificate obtained without genuine verification is invalid, and ownership arrangements without real economic benefit and control are fronting — criminal, and investigated by the B-BBEE Commission.
- Establish your category — you may not need a verification
- Check whether a sector code applies to your industry
- Get a pre-assessment before committing to a target level
- Structure and evidence training you already deliver
- Confirm what socio-economic development contributions qualify
- Ask existing suppliers for their certificates — it costs nothing
- Confirm which elements are priority and what the sub-minimums are
- Budget scorecard spend at the start of the financial year
- Keep records as you go — unevidenced claims are not counted
- Use a SANAS-accredited agency and never buy a level
Frequently Asked Questions
Where are the achievable points for a starting business?
Usually skills development and socio-economic development, because both are spend-based and within your control. Procurement can also score without new spend.
Can training I already do count?
Often, where it is structured and evidenced as the Codes require. Aligning existing training and recording it converts spend you already make into points.
Why did we not reach the level our points suggested?
Probably a priority element sub-minimum. Failing one discounts the overall level regardless of the total points achieved.
What should I do first?
Establish your category, check for a sector code, and get a pre-assessment. Deciding on a target level without knowing where you currently sit is guessing.
Recognition levels, scorecard elements, weightings, priority elements and sector codes are set in the B-BBEE Act and the Codes of Good Practice and are amended. Confirm current requirements with the Department of Trade, Industry and Competition or a SANAS-accredited agency.