Any enterprise with an annual total revenue of R5 million or less, or is a recently formed or incorporated entity that has been in operation for less than one year (start up enterprise) would qualify as an Exempted Micro Enterprise (EME). EME’s are deemed to have B-BBEE Status of “Level 4 Contributor” having a B-BBEE procurement recognition of 100%. If an EME’s is more than 50% black owned, it is elevated to have a “Level 3 Contributor” having a B-BBEE procurement recognition of 110%.

More than 50% Black Owned means an entity in which:
• black people hold more than 50% of the exercisable voting rights
• black people hold more than 50% of the economic interest
• has earned all points for Net Value

Black = African, Coloured and Indian South African Citizens

Black individuals has the meaning defined in the Act qualified as including only natural persons who are citizens of the Republic of South Africa by naturalization:
• Occurring before the commencement date of the constitution of the Republic of South Africa Act of 1993; or
• Occurring after the commencement date of the Constitution of the Republic of South Africa Act of 1993, but who, without the Apartheid policy would have qualified for naturalization before then.

Value-Adding Enterprise:
An entity registered as a vendor under the Value-Added Tax of 1991, whose Net Profit before tax summed with its Total Labour Cost exceeds 25% of the value of its Total Revenue, is a Value-Adding Enterprise. If your entity is value adding according to this definition, there will be enhanced recognition of 125%. This means, if you are a value adding enterprise every rand spent will be multiplied by 1.25 first, before applying the relevant contribution status.

South-Africa’s first B-BBEE verifications agency, Empowerdex, pioneered the empowerment verifications methodology and was actively involved in the drafting of the Codes of Good Practice. It is therefore perfectly positioned to be the provider of your EME certificate.

For more information or if you require an application form, kindly contact your regional office.