How to Qualify for BEE Exempt Certificates
Any enterprise with a total annual turnover of R5 million or less is considered an Exempt Micro Enterprise according the Codes of Good Practice for BEE. As such, BEE exempt certificates can be obtained that will state Level 4 BEE status and the enterprises automatically have 100% B-BBEE procurement recognition. Where the enterprise has more than 50% black ownership, the B-BBEE status is Level 3 and procurement recognition is at 110%.
To qualify for the Exempt Micro Enterprise status, you will need to provide enough evidence for qualifying as an Exempt Micro Enterprise. Such evidence includes an auditor certificate or an accounting officer issued certificate similar to the auditor certificate. You can also obtain a BEE EME Exempt Certificate from an approved verification agency.
How to Know if your Company Qualifies
If your company has an annual turnover of R5 million or less, and meets the above stated requirements, it qualifies as an Exempt Micro Enterprise (EME). There are some exceptions, such as businesses operating in the tourism and construction sectors. If you operate a business in the tourism sector, you will only qualify as an EME if your annual turnover is R2.5 million or less.
The exemption threshold in the construction industry is R1.5 million for Built Environment Professionals (BEPs). This means that if you operate a business in the industry, such as an architectural firm, consulting engineering or quantity surveying company, then you will only qualify for a BEE Exempt certificate if your annual turnover is R1.5 million or less. Contractors are not affected and thus qualify as EMEs if their annual turnover is R5 million or less.
What Does the Procurement Percentage Mean?
If your company has 100% procurement recognition status, your clients and suppliers will get 100% recognition for their BEE spending at your business.
Benefits of BEE Exempt Certificates
You do not need to go through the annual verification process and because of such, you will save a lot of money and resources allocated to the process. Your firm automatically has 100% or 110% procurement recognition, which will benefit your suppliers and clients. This will give your firm a competitive edge in the industry and help in your marketing efforts. You can thus favourably compete with much larger firms which do not have the same procurement recognition.
To gain the benefits of 100% or 110% procurement recognition respectively in your specific industry, assess whether your firm qualifies and contact us to apply for assistance in obtaining your BEE exempt certificate.