The B-BBEE Commission has recently issued a practice guide 02 of 2016 which addresses B-BBEE certificates for Exempt Micro Enterprises (EME’s) with an annual turnover below R10 million, as well as black-owned Qualifying Small Enterprises (QSE’s ) with an annual turnover between R10 million and R50 million.
EME’s now only need a suitable affidavit to justify their status. EME’s that are required to follow a sector code may have different requirements as they will still need to comply with their respective charter.
EME’s need do no more than inform their customers that they are exempt. Even if they are exempt they must ensure that the correct and most appropriate information is given to their customers to avoid any fronting issues.
Black owned businesses with a turnover of less than R50 million per annum (QSE’s with 51% or more black ownership) are awarded an enhanced B-BBEE recognition and are required to supply documentation similar to an EME affidavit to justify their status.
Government Gazette 36928, paragraph 4 explains the requirements for EME’s and paragraph 5 set out the requirements for QSE’s. Also refer to Practice Guide 02 of 2016.