B-BBEE requirements depend on your annual total revenue. An Exempted Micro Enterprise (R10 million or less) needs a sworn affidavit or a CIPC certificate. A Qualifying Small Enterprise (R10 million to R50 million) needs an affidavit if it is at least 51% black owned and a verified scorecard otherwise. A large enterprise (R50 million or more) needs full verification by a SANAS-accredited agency.
Establish your category before you engage anyone. Many small businesses do not need a verification certificate at all. There is no registration with the B-BBEE Commission in the sources we checked: you show compliance with an affidavit, a CIPC certificate or a verification certificate.
Business Requirements at a Glance
These thresholds come from Statement 000 of the Codes of Good Practice (2019 amendment).
- Exempted Micro Enterprise (EME): annual total revenue of R10 million or less
- Qualifying Small Enterprise (QSE): annual total revenue between R10 million and R50 million
- Large enterprise: annual total revenue of R50 million or more, measured on the full generic scorecard
- EMEs are deemed Level 4 (100% recognition). An EME that is at least 51% black owned moves to Level 2 (125%), and a 100% black owned EME to Level 1 (135%).
- A QSE that is at least 51% black owned is Level 2 and one that is 100% black owned is Level 1, on an annual sworn affidavit. Other QSEs are measured on the QSE scorecard.
- Start-ups are ordinarily treated as EMEs. A start-up must submit a QSE scorecard when tendering for contracts above R10 million and below R50 million, and the generic scorecard at R50 million or more.
Registration and Legal Requirements
B-BBEE is governed by the B-BBEE Act 53 of 2003, as amended in 2013, and the Codes of Good Practice. The B-BBEE Commission oversees implementation and investigates violations. There is no separate registration step: the Commission says a verification certificate can only be issued by a verification professional accredited by SANAS (see its general principles FAQ).
The generic scorecard measures five elements: Ownership, Management Control, Skills Development, Enterprise and Supplier Development, and Socio-Economic Development. Ownership, Skills Development and Enterprise and Supplier Development are priority elements. Missing the sub-minimum on a priority element discounts your level by one level. A QSE must meet Ownership plus either Skills Development or Enterprise and Supplier Development.
If your sector has a gazetted sector code, you may only be measured under that code rather than the generic scorecard.
Documents and Ownership Information Required
EMEs and qualifying black-owned QSEs use the dtic’s sworn affidavit templates: the EME affidavit and the QSE affidavit. They are free on the dtic website. The EME template declares the percentage of black and black woman ownership and that income does not exceed R10 million. The QSE template records the ownership breakdown and revenue between R10 million and R50 million, and only the Level 1 (100% black owned) and Level 2 (at least 51% black owned) boxes apply.
The commissioner of oaths must have no interest in your enterprise, so an employee cannot commission it. Anyone qualifying under the Justices of the Peace and Commissioners of Oaths Act can. An affidavit is valid for 12 months from the date it was commissioned (see the Commission’s Practice Guide 01 of 2022).
For verification, your agency will tell you which records it needs to test your ownership, skills, supplier and socio-economic claims.
Tax, Licence and Compliance Requirements
Only a SANAS-accredited agency can issue a verification certificate. To check one, use the SANAS website, which shows accreditation status, period and scope and lists agencies that have been withdrawn or suspended. The Commission recommends this check in its practice guide. Agency fees are not published by an official source, so get quotes.
Misrepresenting your B-BBEE status knowingly 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.
Process, Deadlines and Ongoing Obligations
Evidence is renewed every year. An affidavit lapses 12 months after it is commissioned, and a CIPC or verification certificate is valid for 12 months.
- Work out your annual total revenue and ownership to find your category.
- Check whether a sector code applies to your industry.
- EME or qualifying QSE: complete the dtic affidavit, or for an EME apply for the free CIPC B-BBEE certificate.
- Other QSEs and large enterprises: appoint a SANAS-accredited agency and verify its accreditation first.
- Diarise renewal before the 12 months run out.
Frequently Asked Questions
What are the BBBEE levels?
Levels run from Level 1 (best) to Level 8, then non-compliant. For scored entities the 2013 gazetted table in the Codes of Good Practice sets these bands. The 2019 amendment replaced Statement 000, so confirm the bands with the dtic or your agency.
- Level 1: 100 points or more, 135% recognition
- Level 2: 95 to under 100 points, 125%
- Level 3: 90 to under 95 points, 110%
- Level 4: 80 to under 90 points, 100%
- Level 5: 75 to under 80 points, 80%
- Level 6: 70 to under 75 points, 60%
- Level 7: 55 to under 70 points, 50%
- Level 8: 40 to under 55 points, 10%
- Below 40 points: non-compliant, 0%
What is a BBBEE rating or score?
Your rating is your B-BBEE status level, taken from the scorecard or deemed for an EME or black-owned QSE. It is issued by a SANAS-accredited verification agency, or evidenced by an affidavit or CIPC certificate for the smaller categories.
Do I need a BBBEE certificate?
Not always. EMEs and QSEs that are at least 51% black owned can use a sworn affidavit. QSEs below 51% and large enterprises must be verified by an accredited agency.
How do I register for BBBEE?
There is no registration with the Commission in the sources we checked. You obtain evidence of your status: an affidavit, a CIPC certificate for eligible EMEs, or a verification certificate.
Where do I get the BBBEE affidavit form?
Use the dtic’s prescribed templates, the EME affidavit or the QSE affidavit. Qualifying entities must use them, and you may put them on your letterhead. Sign before a commissioner of oaths with no interest in your business.
Who can get the free CIPC certificate?
The CIPC issues B-BBEE certificates to EMEs for free, valid for 12 months. Entities with foreign directors or members are ineligible and should use the dtic affidavit. The practice guide also says only companies and close corporations with turnover under R10 million, status In Business and annual returns up to date qualify, and the applicant must be a director or member.
What does a BBBEE audit or verification involve?
A SANAS-accredited agency, sometimes called a rating agency, assesses your scorecard evidence against the Codes and issues a certificate valid for 12 months. Official documents call these verification professionals.
Confirm the current position with the B-BBEE Commission, the dtic or a SANAS-accredited verification agency. See company registration requirements and browse all business and compliance requirements.