Broad-Based Black Economic Empowerment Act, 2003 (Act No. 53 of 2003)

Codes of Good Practice on Broad-Based Black Economic Empowerment

Amended Property Sector Code

8. Elegibility as an Exempted Micro Enterprise (EME)
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8.1Any enterprise with an annual total turnover of R10 Million or less qualifies as an Exempted Micro-Enterprise.

 

8.2Despite 8.1 measurement of B-BBEE Exempted Micro Enterprise (EME) for the below mentioned property segments, will apply as shown in the table below:

 

Exempted

Micro

Enterprises

ASSET

BASED

SERVICE

BASED

ESTATE AGENCIES/BROKING/

VALUATION

COMPANIES

Net Assets

Less than R80M

Annual Turnover

Less than R10M

Less than R2.5M

 

8.3An Exempted Micro-Enterprise is deemed to have a B-BBEE Status of "Level Four Contributor" having a B-BBEE recognition level of 100% as per the Amended Codes of Good Practice recognition level.

 

8.4Enhanced B-BBEE recognition level for an Exempted Micro-Enterprise:
8.4.1Despite paragraphs 8.3 an EME which is 100% Black owned qualifies for elevation to "Level One Contributor" having a B-BBEE recognition level of 135%.
8.4.2Despite paragraph 8.3 and 8.4.1, an EME which is at least 51% Black owned qualifies for elevation to "Level Two Contributor" having a B-BBEE  recognition level of 125%.

 

8.5Despite paragraphs 8.3 and 8.4 an EME is allowed to be measured in terms of the QSE scorecard should they wish to maximise their points and move to a higher B-BBEE recognition level.

 

8.6An EME is only required to obtain a sworn affidavit or Certificate from the Companies and Intellectual Property Commission (CIPC) on an annual basis, confirming the following:
8.6.1Annual total turnover based on the EME threshold table above.
8.6.2Level of Black ownership.

 

8.7Any misrepresentation in terms of Para 8.3 above constitutes a criminal offence as set out in the B-BBEE Act as amended.