SMALL ENTERPRISE (EME)
Exempt Micro Enterprises (EME's) are businesses with an annual turnover of below R10 million. This means that they are exempt from having to comply with the B-BBEE scorecard and merely need to prove that their annual turnover is below the required turnover threshold.
They are thus afforded an automatic Level 4 B-BBEE status. If an entity can also prove that they are 51% Black Owned they are awarded an automatic Level 2 B-BBEE status. If they are 100% Black Owned they are awarded and automatic Level 1 B-BBEE Status.
The Modified Flow-Through Principle may not be applied when using the Enhancement method.
EME’s require a BEE Certificate in terms of the original Codes but in terms of the Amended Codes only an affidavit confirming their B-BBEE Status.
* Please bare in mind that the thresholds for qualification as an EME in terms of the different sector codes, are sometimes different to those adopted by the general Amended Codes.
We will require the following documents:
- Business registration details
- CK2, CM1 or CoR14.3
- Proof of turnover
- Signed Financial Statements, or
- Signed Management Accounts with affidavit, or
- Bank statements for the 12 months of the last financial period.
- Value adding supplier: Proof of your VAT registration
- Are you claiming black ownership? (optional)
- Share register with certificates, Shareholders agreement and certified copies of shareholders’ IDs.