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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)

 

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

 

8.2 Despite 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

 

8.3 An 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.

 

8.4 Enhanced B-BBEE recognition level for an Exempted Micro-Enterprise:
8.4.1 Despite 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%.
8.4.2 Despite 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%.

 

8.5 Despite 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.

 

8.6 An 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:
8.6.1 Annual total turnover based on the EME threshold table above.
8.6.2 Level of Black ownership.

 

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