B-BBEE level 1 is the highest contributor level. On the Generic Scorecard you need 100 or more points, and your customers can claim 135% procurement recognition on what they spend with you. The other route is ownership: an EME or QSE that is 100% black owned (measured on the flow-through principle) qualifies for Level One automatically, with a sworn affidavit.
An enterprise that is only 51% black owned reaches Level Two, not Level One. Level thresholds come from the B-BBEE Commission’s Codes presentation and Statement 000; confirm them against the current gazette.
Business Requirements at a Glance
What you need depends on your size, based on annual total revenue (Statement 000):
- EME (R10 million or less): deemed Level Four. Elevated to Level One (135%) only if 100% black owned, or Level Two (125%) if at least 51% black owned.
- QSE (R10 million to R50 million): Level One if 100% black owned, Level Two if at least 51% black owned. Other QSEs comply with the QSE scorecard.
- Large enterprise (R50 million or more): must earn 100 or more points on the Generic Scorecard, which measures five elements.
The five elements and their points are Ownership 25, Management Control 19, Skills Development 20, Enterprise and Supplier Development 40 and Socio-Economic Development 5. The Generic Scorecard levels run from Level One at 100 or more points (135%) down to Level Four at 80 to under 90 points (100%).
Registration and Legal Requirements
B-BBEE is governed by the Broad-Based Black Economic Empowerment Act 53 of 2003 as amended by Act 46 of 2013, and the B-BBEE Commission is the regulator. Claiming a level you do not hold, or fronting, is an offence: a fine or up to 10 years’ imprisonment, or for a company a fine of up to 10% of annual turnover.
Do not split a business to qualify as an EME or QSE; the Codes say this may be an offence. If your sector has its own code, you are measured against that code only. An IT company is measured under the ICT Sector Code, and construction has its own code with different EME and QSE bands. The Level 1 thresholds in those codes are not given here, so check the code for your sector.
Documents and Ownership Information Required
If you qualify for Level One by 100% black ownership, you need the dtic sworn affidavit for your size (EME or QSE). It states your revenue, the latest financial year-end and your black ownership percentages. The commissioner of oaths cannot be an employee of the enterprise or have an interest in it, and the affidavit is valid for 12 months from the date the commissioner signs (dtic EME template).
A large enterprise, or a QSE under 51% black owned, must be verified. Only a verification professional accredited by SANAS can issue the certificate. An EME at Level Four can also be verified, but only to score points and move up.
Tax, Licence and Compliance Requirements
There is no tax or licence for Level One as such. The cost sits in the scorecard, in what you spend on ownership, skills and suppliers. Under the Codes, priority elements carry a 40% sub-minimum:
- Ownership: 40% of the 8 net-value points
- Skills Development: 40% of the 20 points
- Enterprise and Supplier Development: 40% of each category (preferential procurement 25, supplier development 10, enterprise development 5)
A QSE must meet Ownership plus either Skills Development or Enterprise and Supplier Development. A large enterprise must meet all three. Failing a sub-minimum discounts your level by one, so a business scoring 100 points can still fall to Level Two.
Process, Deadlines and Ongoing Obligations
Your level is valid for 12 months. Renew every year. An EME can apply for a free certificate from CIPC if a director or member applies through CIPC eServices, BizPortal or a Self-Service Terminal; details are on the CIPC B-BBEE certification page. Larger businesses appoint an accredited agency, which sets its own fees. No official fee schedule is published, so ask for a quote.
Frequently Asked Questions
What does BEE level 1 mean?
A Level One contributor scores 100 or more points on the Generic Scorecard and gives customers 135% procurement recognition on spend with you.
How does a small business reach Level 1?
Through ownership. An EME or QSE that is 100% black owned (flow-through) is Level One. At 51% black ownership it reaches Level Two. In both cases a sworn affidavit is enough, and an EME can use a CIPC certificate instead.
Why did we score well but drop a level?
You probably failed a sub-minimum on a priority element. Each failure discounts your level by one.
What are the BEE level 1 requirements for an IT company?
IT companies are measured against the ICT Sector Code, not the general Generic Scorecard. Read that code or ask your verification agency for the Level One thresholds that apply.
What about a Level 1 BEE construction supplier?
Construction has its own sector code with different EME and QSE bands. Confirm the rules with your verification agency.
Can we structure ownership to reach a level?
Only genuine ownership counts. Misrepresenting your status or fronting is an offence under the Act.
Confirm your position with the CIPC, the B-BBEE Commission or a SANAS-accredited verification agency before relying on any figure here. See business and compliance requirements and company registration requirements.