Small businesses are sized by annual revenue. An exempted micro enterprise (EME, R10 million or less) is deemed Level Four and only needs a sworn affidavit or a free CIPC certificate each year confirming its revenue and black ownership. A qualifying small enterprise (QSE, R10 million to R50 million) must comply with the QSE scorecard, unless it is at least 51% black owned, in which case an annual sworn affidavit is enough (Statement 000).
So the BEE requirements for a small business depend on your turnover and your black ownership, and on whether the customers you serve ask for proof.
Business Requirements at a Glance
- EME (R10 million or less): deemed Level Four with 100% recognition. 100% black owned lifts you to Level One (135%); at least 51% black owned lifts you to Level Two (125%).
- QSE (R10 million to R50 million): 100% black owned is Level One, at least 51% is Level Two. Both need only an annual sworn affidavit. Any other QSE complies with the QSE scorecard.
- Large enterprise (R50 million or more): not a small business for B-BBEE purposes; the Generic Scorecard applies.
Having no black ownership does not stop an EME complying. It simply stays at Level Four. Raising your level takes genuine black ownership, and bringing in a shareholder only to improve your level risks fronting, which is an offence.
Registration and Legal Requirements
B-BBEE is a legal framework under the Broad-Based Black Economic Empowerment Act 53 of 2003, as amended by Act 46 of 2013, and the Commission regulates it. The Codes apply to organs of state and public entities, to entities doing business with them, and to entities dealing directly or indirectly with those entities. In practice there is no stand-alone duty to hold a level; it is driven by who you trade with. If you supply government or a larger business, expect to be asked for proof.
Do not split or divide a business to qualify as an EME or QSE; the Codes say this may be an offence. Knowingly misrepresenting your status or fronting can bring a fine or up to 10 years’ imprisonment, or for a company a fine of up to 10% of annual turnover. If your sector has its own code, you are measured against that code only. Construction EME bands differ from the general ones.
Documents and Ownership Information Required
Use the dtic affidavit template for your size. The dtic publishes EME and QSE versions on its B-BBEE codes page, and qualifying entities must use them. The EME general template asks for the deponent’s name and ID, the enterprise details, ownership percentages and the latest financial year-end.
- The commissioner of oaths cannot be an employee of the enterprise or have an interest in it.
- The affidavit is valid for 12 months from the date of commissioning.
- A certificate issued by CIPC has the same status as an affidavit.
These checks come from the Commission’s Practice Guide 01 of 2022.
Tax, Licence and Compliance Requirements
There is no tax or licence for B-BBEE status. The costs are the commissioner of oaths’ fee for an affidavit and, for a QSE that must be verified, the verification agency’s fee. Neither is set officially, so get quotes. The CIPC certificate for an EME is free.
Only a verification professional accredited by SANAS can issue a verification certificate. A QSE under 51% black owned must be verified.
Process, Deadlines and Ongoing Obligations
- Work out your category from your annual total revenue.
- EME: a director or member applies for the CIPC certificate through CIPC eServices, BizPortal or a Self-Service Terminal, or you sign and commission a dtic affidavit. A foreign director or member means you use the affidavit route. See the CIPC B-BBEE certification page.
- QSE 51% or more black owned: sign and commission a QSE affidavit.
- Other QSEs: appoint a SANAS-accredited verification agency.
Everything lapses after 12 months, so renew each year. A new certificate or affidavit is a fresh application.
Frequently Asked Questions
Is B-BBEE compliance compulsory?
The Codes make you measurable if you deal with organs of state or other measured entities. EMEs are deemed Level Four, with an affidavit or CIPC certificate as proof. Whether it matters to you depends on your customers and tenders.
Can a business with no black ownership comply?
Yes, if it is an EME. It is deemed Level Four and obtains an affidavit or a CIPC certificate each year.
Should I bring in a shareholder to improve my level?
Only if the ownership is genuine. The Act makes fronting an offence.
How do I know whether it matters to me?
Ask your key customers and the tenders you pursue whether they require a B-BBEE affidavit or certificate. Then check your size category.
Does the Small Enterprise Development Agency help with B-BBEE?
Confirm this directly with the agency or the B-BBEE Commission.
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.