~ BEE Exempt Certificates in South Africa ~
There are many things to consider when starting a new business. You need to decide what products and services you want to offer, how many employees you need to hire and all the different tax types that you need to register for. In addition to this, you might also benefit by obtaining a BEE exempt certificate, especially if you are a new small business just starting out.
The Benefits of Obtaining a BEE Certificate
There are many benefits to obtaining a BEE certificate. As a business owner you can qualify for tenders and projects from larger customers and even government institutions if you are properly certified. You will also show that you support the BEE initiative and that your company complies with the rules and regulations. They are different rating levels available, which is why you need to find out where your company currently stands and what you can do to improve your rating.
There are three basic levels when it comes to verifying a company’s BEE status. Companies who have a turnover of less than R10 million per annum will be classified as n Exempted Micro Enterprise. Companies with a turnover of between R10 million and R50 million per annum will be classified as a Qualifying Small Enterprise, while companies with a turnover of more than R50 million per annum will be classified as a Generic Enterprise. Verification can be done with the help of verification agencies like Taxleaders.Net.
There are also software packages available that allow you to view your BEE score on a monthly or annual basis, so that you can see how your business performs, while seeking specific targets for your company. You can monitor your progress throughout the year, allowing you to effectively manage your company’s BEE score. The software packages will help you to improve your score by giving you specific tasks and milestones to work towards, but will increase your BEE status so that you obtain a higher rating.
BEE Exempt Certificates
In some cases, BEE Exempt Certificates can be issued to qualified businesses. A registered business with a total annual turnover of less than R10 million qualifies as an Exempt Micro Enterprise (EME). This allows you to qualify for a BEE exempt certificate, which can be obtained on your behalf by Taxleaders.Net. Another benefit of being exempt is that you will automatically obtain a B-BBEE Level 4 status.
As an exempt enterprise you can still improve your rating over time and obtain a new status level as your business grows. By using other BEE rated suppliers and implementing certain requirements, your business can significantly improve its rating over time. BEE exempt certificates are a great way to start your rating.
Some of the ways in which you can improve your status level is by taking part in skills development, making use of BEE certified suppliers and implementing employment equity processes in your business. You can also revise your company’s ownership and shareholders on the regular basis.
It is always a good idea to work with a professional team who can help you to obtain your certificate and also advise you on how you can further improve your rating. This will make you aware of the requirements necessary to maintain and improve your score on a regular basis.
Taxleaders.Net is based in Gauteng and we can help you with BEE exempt certificates for your company. We can help you to find out what is necessary to obtain a higher score and also support you with accounting and tax management. Our team knows what it takes to allow your business to be BEE compliant.