What is the meaning of BEE certificate?
BEE Certificate means an original or copy of a certificate issued by a verification agency accredited by the accreditation body contemplated in the BEE Codes, certifying that the person identified in the certificate is a BEE Compliant Person, which is attached as Annexure D; Sample 1Sample 2Sample 3.
Who qualifies for BEE certificate?
Customers can apply for a B-BBEE certificate on the eservices website, Bizportal or at the CIPC Self Service Terminal. For a business with a turnover of less than R10 million, a B-BBEE certificate is not required.
What is a bee status?
BEE Status means the Broad-based BEE status or progress of an economic entity as measured according to the B-BBEE Scorecard in the B-BBEE Code of Good Practice or in a gazetted Sector Code.
How do I become BEE compliant?
Follow these 10 steps to a compliant BEE certificate:
- UNDERSTAND AND EDUCATE YOURSELF ABOUT B-BBEE.
- UNDERSTAND HOW BEE AFFECTS YOUR BUSINESS.
- UNDERSTAND THE LEGISLATIVE REQUIREMENTS FOR YOUR BUSINESS.
- ASK A SPECIALIST.
- USE THE CORRECT TOOLS.
- UNDERSTAND THE INDICTORS FOR SCORING POINTS.
- KEEP A RECORD OF EVERYTHING.
Why do I need a BEE certificate?
Yes, you need BEE verification to do business with government and corporates because they, in turn, have to be compliant with BEE in their supply chain. According to Louis Pulzone from LFP Training, the more empowered a corporate’s suppliers, the more points they can earn on their scorecard.
What are the benefits of BEE certificate?
One of the main benefits of having a B-BBEE certificate is that companies can conduct business with government sectors in South Africa, including municipalities, as well as public entities. The certificate allows the company to tender for contracts and increases the chances of winning the contract.
How much does a BEE certificate cost?
CIPC B-BBEE certificates are free of charge. CIPC only provides B-BBEE certificates to Exempted Micro Enterprises; turnover of no more than R10 million. A certificate is only valid for a year and cannot be renewed.
Is it compulsory to have a BEE certificate?
ARTICLES. A B-BBEE certificate may not be the first thing on your business’s to-do list – and the good news is that it doesn’t have to be. However, while BEE compliance isn’t an obligation on your part, as a private business owner a valid B-BBEE certification could open up more opportunities for you.
Do all companies have to be BEE compliant?
How much does BEE certificate cost?
CIPC B-BBEE certificates are free of charge. CIPC only provides B-BBEE certificates to Exempted Micro Enterprises; turnover of no more than R10 million. A certificate is only valid for a year and cannot be renewed. Once expired a new application must be filed.
Can a sole trader have a BEE certificate?
Yes, you need BEE verification to do business with government and corporates because they, in turn, have to be compliant with BEE in their supply chain.
How long does it take to get a BEE certificate?
On average, this is no more than one to two months a company will be notified of the requirement of a specific BEE level for the required business transaction.
Why does a company need a BEE certificate?
In order to compete for government tenders, companies must have valid BEE certificates. The BEE exempt certificates serve as proof that qualifying companies have Level 4 contributor status, and as such, can compete for the relevant tenders.
What happens if you are not BEE compliant?
The B-BBEE process and government procurement Important to know is that the B-BBEE process is driven by the South African government through its procurement policy. In other words, if you don’t have a valid B-BBEE certificate you would not be considered as a supplier to any state-owned entity.
How can I get a free BEE certificate?
If your Company’s annual turnover (sales) is below R10 million, you require a BEE Affidavit which serves as your BEE Certificate. You can get a professional, system generated Affidavit from Company Partners free of charge. Just complete the easy sign up form below to get your free professional BEE Affidavit.
How much does it cost to get a BEE certificate?
Is it law to have a BEE certificate?
B-BBEE compliance for companies is not a legislative requirement. Companies are not required to disclose their B-BBEE status or verify their status. It is seen as business requirement.
When does a company qualify for a BEE certificate?
If a company has a turnover of more than R10 million and less than R50 million, the company will qualify for either a Level 1 / Level 2 BEE Certificate IF the black ownership is more than 50% For a QSE with black ownership of 51% but less than 100%, a Level 2 Contributor applies
What is a BEE score and why is it important?
The BEE scorecard is an important element in any business in South Africa. Business owners are advised to understand the scoring for their own good. This is because the higher your BEE score, the higher the chances of your business gaining from different opportunities.
What does it mean to be bee compliant?
According to paragraph 4 of the DTI’s gazetted codes of good practice for Black Economic Empowerment businesses with turnover of less than R10 million qualify as exempted micro enterprises and are thus 100% BEE compliant. Companies who have Black shareholding exceeding 50% qualify as 125% BEE compliant.
How many points do you need for bee level 1?
The new BBBEE level came into existence in 2013. Although there are slight variations, the basics remain the same. For instance, BBBEE level 1 contributor must have attained 100 points on the generic scorecard to attain a recognition level of 135%. What are the benefits of BEE certification?