B-BBEE for small businesses: the free affidavit
Many customers, especially larger companies and government, ask suppliers for their B-BBEE level. If you are a small business, you probably do not need to pay for a verification certificate at all. Here is how the free affidavit works.
Exempted Micro-Enterprises (EMEs)
Under the generic B-BBEE Codes, a business with annual turnover up to R10 million is an Exempted Micro-Enterprise (EME). Some sectors, such as construction and tourism, have their own sector codes with different limits, so check the code for your sector. An EME does not need a verification agency: it proves its status with a sworn affidavit, which is free.
An EME's level follows its ownership:
- 100% black-owned: Level 1.
- At least 51% black-owned: Level 2.
- Otherwise: Level 4.
Qualifying Small Enterprises (QSEs)
A business with turnover above R10 million and up to R50 million is a Qualifying Small Enterprise (QSE). A QSE that is at least 51% black-owned can also use an affidavit; otherwise it is measured on the QSE scorecard by an accredited verification agency.
How to do the affidavit
- Use the correct affidavit template for your sector and size from the B-BBEE Commission or the dtic.
- Fill in your turnover and ownership honestly.
- Sign it in front of a commissioner of oaths, for example at a police station.
- Keep it current: it is generally valid for twelve months, so diarise the renewal.
Misrepresenting your B-BBEE status is an offence, so the figures must be true.
Common questions
Do small businesses need a B-BBEE certificate?
Usually not. An Exempted Micro-Enterprise (turnover up to R10 million) proves its B-BBEE status with a free sworn affidavit instead of a verification certificate.
What B-BBEE level is a 100% black-owned EME?
Level 1. An EME that is at least 51% black-owned is Level 2, and other EMEs are Level 4.
How long is a B-BBEE affidavit valid?
Generally twelve months from the date it is signed, so it needs to be renewed each year.