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Compliant business

Is your business BEE compliant?

Key principles

Types of BEE rating

BEE Recognition of Measured Entities

Empowerment and Development

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 

Types of BEE rating

  1. Full rating
    • Generic scorecard, all 7 elements
    • Annual Turnover > R35 million
    • Sector Code
  2. Qualifying Small Enterprise
    • Annual Turnover between R5 million and R35 million
    • All elements are measured
    • 4 of the 7 elements are used – each counting 25%
    • QSE can elect to be measured in terms of Generic Scorecard
  3. Exempted Micro Enterprise
    • Annual Turnover < R5 million
    • 65% if < 50.1% Black Owned - Level Four Contributor - 100% BEE Procurement Recognition Level.
    • 75% if > 50.1% Black Owned – Level Three Contributor – 110% BEE Procurement Recognition Level.
    • EME can elect to be measured using QSE Scorecard
  4. Start-up enterprise
    • Measured as EME for the first year following formation (regardless of expected total revenue)
    • Enterprise must provide independent confirmation of its status
    • If tendering for any contract:
      • QSE Scorecard if value of contract is between R5 million and R35 million
      • Generic Scorecard if value of contract is > R35 million
  5. Specialised Enterprises
    • Companies limited by guarantee
    • Higher Education Institutions
    • Non-profit Organisations
    • Public Entities and Enterprises wholly owned by organs of state
    • Public Benefit Schemes
    • Section 21 companies
      Adjusted Generic Scorecard and an Adjusted Qualifying Small Enterprise Scorecard is used depending on enterprise’s annual turnover.
  6. Transitional period (09/02/07 – 09/02/08)
    • During this period the measured entity can choose between the Generic Scorecard or Transitional Scorecard
    • Thereafter, if annual turnover > R35 million, a Generic Scorecard is used
    • Transitional Scorecard assigns BEE Status on the bases of Ownership and Management Control
      • A= B x 1.92
        A: BEE Status during transitional period
        B: Total score under Code series 100 and 200

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