Why BEE EME Certificates are Still Beneficial
As part of our comprehensive tax and accounting function, we issue BEE certificates for companies that have an annual turnover of more than R10 million. But before we look at such, let us consider BEE EME certificates.
Exempt Micro Enterprises (EMEs) do not have to meet the requirements of the BEE scorecard. If your company falls within the EME group, you are thus exempt from the requirements of compliance with the BEE scorecard.
What is BEE Exemption?
An EME is a company with a turnover of less than R10 million per year. Level 4 Contributor status is awarded to the EME and the company has 100% BEE procurement recognition.
If your company is an EME and is 51% or more black owned, then it gets Level 2 Contributor status and receives BEE procurement recognition of 125%. Being 100% black-owned is rather beneficial, as your EME then gets Level 1 Contributor status with a BEE procurement recognition of 135%.
What Do You Need in Support of Your Claim to Fall Within the EME Category?
To qualify as an EME, your firm needs a certificate issued by an accounting officer or a relevant verification agency. We are able to issue such BEE EME certificates and can thus help.
What If Your Company’s Turnover Is More Than R10 Million?
If the turnover per annum is less than R50 million, your company falls within the Qualifying Small Enterprise (QSE) category, and qualifies for a Level 1 or 2 Contributor status if it is more than 50% black-owned. If it is less than 100% black-owned, it qualifies for Level 2 Contributor status. If 100% black-owned, it gets Level 1 Contributor status.
What About an Affidavit?
Yes, as EME you can have a sworn statement regarding your company’s turnover and ownership. However, you do need to provide supporting evidence of your claim. This can be in the form of financial statements.
What Are the Benefits of BEE EME Certificates?
The certificates are proof of your firm’s annual turnover, black ownership, and empowered supplier status. With such in hand, you can compete favourably with larger firms regarding government contracts. When companies use you as a supplier, they benefit from the points value added to their BEE scorecards.
What Are the Benefits of BEE QSE Certificates?
Your firm has proof of your compliance with BEE scorecard requirements. As such, many opportunities that are only available to companies with valid BEE certificates can be accessed.
We understand how important it is to be competitive in the South African economy and thus make it easier to get the BEE EME certificates. Simply use our online facility to request your certificate whether as QSE or EME.
Disclaimer: This article is for informational purposes only and does not constitute legal, tax, or financial advice. Call on us for professional legal advice, rather than relying on the information herein to make any decisions. The information is relevant to the date of publishing.