Requirements

B-Bbee Requirements

B-BBEE requirements turn on annual total revenue. An Exempted Micro Enterprise (EME, R10 million or less) needs a sworn affidavit or free CIPC certificate and is deemed Level 4. A Qualifying Small Enterprise (QSE, R10 million to R50 million) needs an affidavit if at least 51% black owned, otherwise a verified QSE scorecard. A large enterprise (R50 million or more) needs full scorecard verification by a SANAS-accredited agency.

Work out your category first, then check whether a sector code applies to your industry.

Business Requirements at a Glance

These thresholds come from Statement 000 of the Codes of Good Practice (2019 amendment).

Registration and Legal Requirements

The B-BBEE Commission was established under the B-BBEE Act 53 of 2003, as amended by Act 46 of 2013, to oversee implementation and investigate violations. The Codes of Good Practice, including Statement 000, set the categories and scorecard. If your sector has a gazetted sector code, you may only be measured under it. That matters for questions such as “B-BBEE level 2 IT suppliers”: if an ICT sector code applies to you, that code decides your level rather than the generic scorecard. Confirm its thresholds with the dtic.

Do foreign investors have different B-BBEE requirements?

Confirm with the dtic whether any separate B-BBEE rule applies to foreign investors. Two points do matter. Only people who are South African citizens by birth or descent, or naturalised before 27 April 1994 (or entitled to be), count as black people for ownership (see the Commission’s FAQ). And an entity with foreign directors or members cannot use the CIPC B-BBEE certificate, so an EME in that position uses the dtic affidavit.

Documents and Ownership Information Required

An EME needs a sworn affidavit or a CIPC certificate confirming revenue of R10 million or less and the level of black ownership. Use the dtic templates: the EME affidavit or QSE affidavit. The affidavit is valid for 12 months from the date it was commissioned.

An EME is deemed Level 4 (100% recognition). If it is at least 51% black owned it is Level 2 (125%), and at 100% black owned it is Level 1 (135%). A QSE at those ownership levels is also Level 2 or Level 1 on an affidavit. Qualifying entities must use the dtic templates, which are free.

The commissioner of oaths must have no interest in your enterprise, so an employee cannot commission your affidavit. For verification, the agency will tell you which records it needs.

Tax, Licence and Compliance Requirements

Only a SANAS-accredited verification professional can issue a verification certificate. Check a b-bbee verification agency on the SANAS website: it shows accreditation status, period and scope and lists withdrawn or suspended agencies, as the Commission advises in Practice Guide 01 of 2022. Agency fees are not published officially, so get quotes.

Knowingly misrepresenting your B-BBEE status is an offence under section 13O of the B-BBEE Act. The Commission can fine an entity up to 10% of annual turnover, and individuals face up to 10 years’ imprisonment. Splitting an entity to qualify as an EME, QSE or start-up may also be an offence.

Priority elements are Ownership, Skills Development, and Enterprise and Supplier Development. Missing a sub-minimum on one discounts your level by one level.

Process, Deadlines and Ongoing Obligations

The CIPC route requires a company or close corporation with turnover under R10 million, status In Business, annual returns up to date and an applicant who is a director or member.

Frequently Asked Questions

Does every business need a B-BBEE certificate?

No. EMEs and QSEs that are at least 51% black owned can use a sworn affidavit. A certificate can only come from a SANAS-accredited agency, and QSEs under 51% black ownership and large enterprises must be verified.

What is the B-BBEE affidavit and how do I get one?

It is a sworn declaration of your revenue band and black ownership. Complete the dtic template, sign it before a commissioner of oaths with no interest in the business, and note that it is valid for 12 months. We found no official “certificate to be completed”; the forms we found are the dtic affidavit templates and the CIPC online certificate.

What are the B-BBEE levels, and what is Level 3?

Levels run from Level 1 (best) to Level 8, then non-compliant. Under the 2013 gazetted table in the Codes, Level 3 is 90 to under 95 points on the generic scorecard with 110% recognition. The 2019 amendment replaced that statement, so confirm the bands with the dtic or your agency.

How is the B-BBEE score worked out?

Entities above the affidavit categories are scored on the scorecard across ownership, management control, skills development, enterprise and supplier development, and socio-economic development, and the points total gives the level.

What is the B-BBEE verification process?

A SANAS-accredited agency assesses and validates your scorecard information against the Codes and issues a certificate valid for 12 months. This is the audit people refer to, and agencies are sometimes called rating agencies.

Can I buy a certificate?

No. A certificate comes from verification by an accredited agency, or you give a sworn affidavit that you stand behind. Misrepresenting your status is a criminal offence.

What does the EME affidavit threshold mean?

An EME has annual total revenue of R10 million or less. Above that you are a QSE up to R50 million, and a large enterprise from R50 million.

Confirm the current position with the dtic, the B-BBEE Commission or a SANAS-accredited verification agency. See company registration requirements and browse all business and compliance requirements.

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