A Black Economic Empowerment (BEE) certificate verifies a company’s compliance level with the BEE initiative in South Africa. This initiative aims to promote a more equitable distribution of wealth by ensuring participation of previously disadvantaged individuals in the economy.
Information contained in a BEE certificate
- Company name
- Address
- Registration details
- Category of the company
- Sector code
- BEE scorecard element scores and points
- Date of issuance
Benefits of having a BEE certificate
- Improved competitiveness: Level 1 status enhances a company’s competitive edge and visibility.
- Easier supplier identification: Other businesses can easily locate BEE-compliant suppliers.
- Efficient government business: Certified companies can conduct business smoothly with government entities.
- Procurement claims: Companies can claim procurement expenditure with BEE-compliant suppliers, earning them points towards their BEE score.
How to obtain a BEE certificate
The process varies depending on your company’s annual turnover:
For companies with a turnover below R10 million
- No formal BEE certificate needed.
- Obtain a FREE BEE Affidavit signed by a Commissioner of Oaths.
- Alternatively, acquire a CIPC certificate through the following steps:
- Generate a customer code on the CIPC website (https://www.cipc.co.za/).
- Pay the R30 fee into CIPC’s bank account (details available on their website).
- Request the certificate on the CIPC website using your customer code and password.
BEE Certificate For companies with a turnover exceeding R10 million
- Engage a SANAS or IRBA accredited verification agency to assess your BEE compliance.
- You can find a list of accredited agencies on the SANAS website (https://www.sanas.co.za/).
- Renewal: SANAS certificates are valid for one year and require renewal for reassessment.
Important information:
- Company classification: Understand your company’s classification based on annual turnover (start-up, EME, QSE, or Large Enterprise) as it determines the appropriate BEE certificate type.
- Verification agency selection: Choose a SANAS-accredited agency for accurate and reliable assessment.
- Renewal process: Renew your certificate annually to maintain compliance and potentially improve your BEE rating.
Conclusion:
Obtaining a BEE certificate is crucial for businesses operating in South Africa, particularly those seeking government contracts or aiming to improve their market competitiveness. By understanding the types of certificates available and the application process, companies can ensure they comply with the BEE regulations and contribute to a more inclusive economy.