Having a BEE Certificate comes with lots of benefits and you’ll get to know about these benefits as you keep reading further. More importantly be informed that, acquiring a BEE certificate is mandatory for businesses or companies in South Africa.
In light of this, we are going to guide you on how to apply for BEE certificate in South Africa.
About A BEE Certificate In South Africa
BEE simply stands for Black Economic Empowerment — it is a document that shows the level at which a company or business entity complies with the BEE regulations.
BEE certificate is a document that shows that a company has black ownership and is compliant with other BEE initiatives.
BEE Certificate was instituted by the government of South Africa in reaction to critiques that were raised against the country’s empowerment methodologies, which many termed as bias against certain group of people or race.
Businesses or companies that have BEE certificates are assigned a B-BBEE level according to a scorecard system that designates points for several activities. The sum total value of the points are 105 and these are:
Enterprise development and supplier development — 40 points
- Enterprise development: 5
- Supplier development: 10
- Preferential procurement: 25
Ownership — 25 points
Skills Development — 20 points
Management control — 15 points
Socio-economic development — 5 points
Business entities can be awarded up to the net amount of points for a single activity.
With respect to the total of all their points, they are given a B-BBEE level. These levels are critical because they determine the public, and private procurement opportunities accessible business
Level 1: 100 points or more
Level 2: 85 to 99 points
Level 3: 75 to 84 points
Level 4: 65 to 74 points
Level 5: 55 to 64 points
Level 6: 45 to 54 points
Level 7: 40 to 44 points
Level 8: 31 to 39 points
Non-Compliant
Non- compliants are businesses or companies with a full score less than 30 points. Such businesses will not be able to get access to most of the benefits that B-BBEE compliance comes with.
Uses And Benefits Of BEE Certificate In South Africa
Basically, BEE certificate confirms that a particular company has enough black, which comprises of Indian, African and Coloured individuals. It also entails black youth ownership and equity.
The Black Economic Empowerment (BEE) was initiated in order to close the gap for South Africans who initially didn’t get access to this equity and were omitted from the formal economy.
A BEE certificate is issued every year to business entities or companies. Meaning, businesses need to reapply for a new certificate when their current certificates exceed a year or has expired.
- Possessing a BEE certificate implies that, private companies and government entities can make firm decisions during their tender and supplier activities.
- Ability to transact with the government and private sector, favourable tax deductions, access to licenses and etc, are all some of the benefits of BEE certificate in South Africa.
How To Apply For BEE Certificate In South Africa
Begin With A SANAS Or IRBA Accredited Verification Agency
In South Africa, for certifications to be valid, they need to be issued by the South African National Accreditation System (SANAS) or Independent Regulatory Body for Auditor (IRBA). However, these two agencies are not responsible for issuing a BEE Certificate.
At this stage, you can channel your application process through either the South African National Accreditation System (SANAS) or Independent Regulatory Body for Auditor (IRBA).
The Annual Turnover Of Your Company
It is very important to determine your company’s annual turnover before attempting the other steps involved in applying for a BEE certificate.
BEE categorizes entities according to the following:
Start-up Enterprise
The Start-up enterprise includes companies that were established recently or begun operating in less than a year.
Exempted Micro-Enterprises (EMEs)
Exempted Micro-Enterprises (EMEs) include companies whose annual turnover is less than R10 million.
Qualifying Small Enterprises (QSEs)
Qualifying Small Enterprises include companies whose annual turnovers are above R10 million but less than R50 million.
Large Enterprises
Large Enterprises include companies whose annual turnovers are more than R50 million.
Understanding The Kind Of BEE Certificate You Need
The kind of BEE testimonial you would go for is influenced by how your company or business entity has been classified with respect to the BEE classification.
For example: Assuming the annual turnover of your company is less than R10 million, then to get a BEE Certificate, you need to go for a free BEE Affidavit which would act in place of a testimonial. This becomes valid only if it is signed by Commissioner of Oaths. Aside that, you may equally get a CIPC certificate in addition.
Take note, you must consult the services of any of the SANAS accredited verification agencies if it happens that the annual turnover of your company or business entity exceeds R10 million.
How To Apply For CIPC BEE Certificate In South Africa
To apply for a CIPC BEE Certificate, you need to follow the steps below.
Generate A Customer Code
Visit the official website (www.cipc.co.za) of the Companies and Intellectual Property Commission (CIPC).
Click on the “Customer Registration” button. From there, your details such as ID/Passport Number, etc would be required. Your code will be generated for you once you’re done entering the necessary information.
Assuming you’ve already signed up with CIPC, all you will need at this point is your customer code and password.
Pay The Stipulated Fee
Though the amount may change with time, R30 is usually paid in order to get the testimonial. This amount is to be paid into the bank account of CIPC according to the details that are provided on their website or other platforms of theirs.
Requesting For Your Certificate
Once you are through with the payment, the next thing to do is to click on the “On-line transacting” button.
You will sign in using your customer code and your password. After, click on “Disclosure and Certificates”.
The final step is to choose the type of licence that you want.