B-BBEE compliance explained?
Each year your company will need to renew its B-BBEE affidavit or certificate. Using InfoDocs, you can calculate your company B-BBEE level as well as produce the relevant supporting document, automatically.
Broad-Based Black Economic Empowerment (B-BBEE) aims to empower previously disadvantaged individuals by way of encouraging companies to give black South Africans the opportunity to work in manager and ownership positions as well as receive educational opportunities. B-BBEE compliance is determined according to the number of points the company scores. B-BBEE compliance is voluntary but has several benefits seeing as the more points the company scores, the higher the level of compliance, and the more benefits the company receives.
The only companies that automatically qualify as a level 4 contributor are known as Exempted Micro Enterprises and have a turnover that is less than R10 million annually, these companies can complete a B-BBEE affidavit signed by a Commissioner of Oaths.
It is advised that companies that have an annual turnover of more than R10 million and less than 51% black ownership, must consider obtaining a valid B-BBEE certificate, and companies with more than R50 million in annual turnover only have the option to obtain a B-BBEE certificate.
References:
http://www.cipc.co.za/index.php/manage-your-business/manage-your-company/bbbee/
https://www.standardbank.co.za/standimg/Standard%20Bank/StandardBank/static%20files/Business/StdBank_BEE_Guide.pdf
https://www.standardbank.co.za/standimg/Standard%20Bank/StandardBank/static%20files/Business/StdBank_BEE_Guide.pdf
Broad-Based Black Economic Empowerment (B-BBEE) aims to empower previously disadvantaged individuals by way of encouraging companies to give black South Africans the opportunity to work in manager and ownership positions as well as receive educational opportunities. B-BBEE compliance is determined according to the number of points the company scores. B-BBEE compliance is voluntary but has several benefits seeing as the more points the company scores, the higher the level of compliance, and the more benefits the company receives.
The only companies that automatically qualify as a level 4 contributor are known as Exempted Micro Enterprises and have a turnover that is less than R10 million annually, these companies can complete a B-BBEE affidavit signed by a Commissioner of Oaths.
It is advised that companies that have an annual turnover of more than R10 million and less than 51% black ownership, must consider obtaining a valid B-BBEE certificate, and companies with more than R50 million in annual turnover only have the option to obtain a B-BBEE certificate.
References:
http://www.cipc.co.za/index.php/manage-your-business/manage-your-company/bbbee/
https://www.standardbank.co.za/standimg/Standard%20Bank/StandardBank/static%20files/Business/StdBank_BEE_Guide.pdf
https://www.standardbank.co.za/standimg/Standard%20Bank/StandardBank/static%20files/Business/StdBank_BEE_Guide.pdf
Updated on: 09/06/2023
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