How much does a B-BBEE certificate cost?
free of charge
CIPC B-BBEE certificates are free of charge. CIPC only provides B-BBEE certificates to Exempted Micro Enterprises in terms of the Amended Codes of Good Practice, issued in terms of Section 9 of the Broad-Based Black Economic Empowerment Act 53 of 2003 as amended; turnover of no more than R10 million.
How do I check a company’s B-BBEE certificate?
To view a company’s B-BBEE status, look no further than the B1SA B-BBEE Registry. It is a free central national source of the B-BBEE status for all entities. All companies that register with B1SA are allocated a Unique Reference Number (URN) and are assisted to submit their B-BBEE status to B1SA.
How do I get a BEE certificate in South Africa?
How to get a BEE certificate in South Africa
- Go through a SANAS or IRBA accredited verification agency.
- Understand the annual turnover of your company.
- Understand the kind of BEE certificate that works for you.
What are the requirements for a BEE certificate?
Follow these 10 steps to a compliant BEE certificate:
- UNDERSTAND AND EDUCATE YOURSELF ABOUT B-BBEE.
- UNDERSTAND HOW BEE AFFECTS YOUR BUSINESS.
- UNDERSTAND THE LEGISLATIVE REQUIREMENTS FOR YOUR BUSINESS.
- ASK A SPECIALIST.
- USE THE CORRECT TOOLS.
- UNDERSTAND THE INDICTORS FOR SCORING POINTS.
- KEEP A RECORD OF EVERYTHING.
How long does it take to receive B-BBEE certificate?
On average, this is no more than one to two months a company will be notified of the requirement of a specific BEE level for the required business transaction.
Do you pay for a BEE certificate?
CIPC B-BBEE certificates are free of charge. CIPC only provides B-BBEE certificates to Exempted Micro Enterprises; turnover of no more than R10 million. A certificate is only valid for a year and cannot be renewed.
Is a BEE certificate compulsory?
Though BEE exempt certificates are not compulsory, they are certainly recommended as proof of Level 4 contributor status. The certificates also serve as proof of 100% B-BBEE procurement recognition.
How do you get B-BBEE Level 1?
The new BBBEE level came into existence in 2013. Although there are slight variations, the basics remain the same. For instance, BBBEE level 1 contributor must have attained 100 points on the generic scorecard to attain a recognition level of 135%.
Who can issue a BEE certificate?
Professional accountants or accounting officers may issue these certificates, but they must be sure that the enterprises qualify before doing so, to avoid falling foul of the codes and being seen as undermining the spirit of the BBBEE Act.
How long is a BEE certificate valid for?
1 year
A BEE certificate is valid for 1 year from date of issue, and can be re-evaluated at any time during that year to potentially achieve a better score. Certificates are only valid when issued by a SANAS accredited verification agency.
Who is exempt from BEE certification?
BEE Certificates
Any Enterprise with an annual Total Revenue of R10 million or less qualifies as an Exempt Micro-Enterprise. Exempt Micro-Enterprises are deemed to have a B-BBEE Status of “Level Four Contributor” having a B-BBEE procurement recognition of 100%
How long does it take to get a BEE certificate from CIPC?
Complete the form below and receive your BEE Affidavit Certificate within 24 hours. The cost for this service is R490. Please note that the below steps are only for Enterprises / Sole Proprietors with an annual turnover / income below R 10 million.
What does Level 2 BEE mean?
A Level-2 BEE status is awarded to companies that score more than 95 but less than 100 of the allocated points on the BEE scorecard.
What is the difference between BEE and B-BBEE?
BEE refers to the government’s policy, B-BBEE is the implementation of the policy. Both refer to the same strategic framework that seeks to right the wrongs of the past and to distribute the wealth of nation across all races and genders.
What are the disadvantages of B-BBEE?
It has done this through legislation such as the Employment Equity Act no 55 of 1998 and the Broad Based Black Economic Empowerment Act no 53 of 1993.
…
Weaknesses in BEE Implementation
- lack of independent legal and professional advice.
- inappropriate financial structuring of transactions.
- funding problems.
Can a sole proprietor register for BEE certificate?
BEE Affidavit Certificate
Please note that the below steps are only for Enterprises / Sole Proprietors with an annual turnover / income below R 10 million. With an Exempt Micro Enterprise (EME), the only criteria is looking at the company’s annual turnover (under R10 million) and the % black shareholding.
What is level 4 BEE?
Broad-Based Black Economic Empowerment
| B-BBEE Status | Qualification | B-BBEE Recognition Level |
|---|---|---|
| Level Four Contributor | >80 but <90 points on the Generic Scorecard | 100% |
| Level Five Contributor | >75 but <80 points on the Generic Scorecard | 80% |
| Level Six Contributor | >70 but <75 points on the Generic Scorecard | 60% |
What is a Level 1 BEE company?
Level 1 – 100 points and above – 135% procurement. Level 2 – 85 to 99.99 points – 125% procurement. Level 3 – 75 to 84.99 points – 110% procurement. Level 4 – 65 to 74.99 points – 100% procurement.
Is B-BBEE compulsory?
Is B-BBEE a legal requirement?
B-BBEE compliance for companies is not a legislative requirement. Companies are not required to disclose their B-BBEE status or verify their status. It is seen as business requirement.
Is it compulsory to have a BEE certificate?
What are the benefits of B-BBEE?
One of the main benefits of having a B-BBEE certificate is that companies can conduct business with government sectors in South Africa, including municipalities, as well as public entities. The certificate allows the company to tender for contracts and increases the chances of winning the contract.
What is a Level 3 BEE company?
Level 3 – 75 to 84.99 points – 110% procurement. Level 4 – 65 to 74.99 points – 100% procurement. This level s considered to be BEE fully compliant. Level 5 – 55 to 64.99 – 80% procurement.
What is the highest BEE level?
The B-BBEE Codes are there to measure the economic involvement of black people measured over 5 elements and consolidated in a scorecard. This scorecard consists of 8 compliant levels ranging from level 1 contributor to BEE at the top to a level 8 which is the lowest level.
What is level 3 BEE status?
Broad-Based Black Economic Empowerment
| B-BBEE Status | Qualification | B-BBEE Recognition Level |
|---|---|---|
| Level Three Contributor | >90 but <95 points on the Generic Scorecard | 110% |
| Level Four Contributor | >80 but <90 points on the Generic Scorecard | 100% |
| Level Five Contributor | >75 but <80 points on the Generic Scorecard | 80% |