To BEE or not to BEE

To BEE or Not to BEE? That Is the Question

The question of whether to pursue B-BBEE compliance can be a source of frustration for many business owners. We've encountered numerous companies that have spent thousands of Rands on professional B-BBEE advice, only to discover that they didn't actually need a B-BBEE certificate in the first place.

First Things First: Do You Need It?

Before diving into the complexities of B-BBEE, it's crucial to ask yourself why you need it. Is it for a tender? Are your clients pressuring you to get certified? For instance, if you're an au pair trading as a sole proprietor, you likely don't need a B-BBEE certificate. In such cases, an affidavit, easily obtainable from the DTI website, might suffice.

Understanding Your Enterprise Type

Your business's annual turnover determines whether you're classified as an EME (Exempted Micro Enterprise), QSE (Qualifying Small Enterprise), or a Generic Enterprise. This classification will guide whether you can simply sign an affidavit or if you need to undergo the SANAS B-BBEE certification process.

Annual Turnover Thresholds by Sector

Here’s a breakdown of the thresholds across different sectors:

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When an Affidavit Is Enough

In most sectors, an affidavit will suffice if you are classified as an EME. For companies that are more than 51% black-owned, you can also complete an affidavit if you're a QSE.

Special Note for Construction Entities

Construction entities should be aware that a SANAS certification process is required once their turnover exceeds R 3 million for contractors and R 1.8 million for BEPs.

Need More Guidance?

If you require further assistance, feel free to contact us at info@elevateadvisory.co.za or visit our website at www.elevateadvisory.co.za. We're here to help you navigate the complexities of B-BBEE compliance

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