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

Sector Codes

Defence Sector Code

12. Eligibility as a Qualifying Small Enterprise

 

12.1 Any Measured Entity with a Total Annual Revenue of between R5,000,000 (five million Rand) and R50,000,000 (fifty million Rand) qualifies as a QSE provided its qualification does not arise as a result of circumvention of the relevant Scorecard;

 

12.2 Entities that are QSEs must use the Qualifying Small Enterprises Scorecard in this Sector Code;

 

12.3 Enhanced B-BBEE recognition level for QSE:

 

12.3.1 A Qualifying Small Enterprise which is 100% Black owned qualifies for a Level One B-BBEE recognition;

 

12.3.2 Despite paragraph 12.2, a Qualifying Small Enterprise which is at least 51% Black owned qualifies for a Level Two B-BBEE recognition level of 125%; and

 

12.3.3 Despite paragraph 12.2, a Qualifying Small Enterprise that is at least 51% Black owned is only required to obtain a sworn affidavit of CIPC issued certificate on an annual basis, confirming the following:—
12.3.3.1 Annual Total Revenue/Allocated Budget/Gross Receipts of R50,000,000 (fifty million Rand) or less, but not less than R5,000,000; and
12.3.3.2. Level of Black Ownership.

 

12.4 Any misrepresentation in terms of paragraph 12.3 above constitutes a criminal offence as set out in the B-BBEE Act, as amended.

 

12.5 Any matter concerning the application of the Qualifying Small Enterprise Scorecard that is not dealt with explicitly in this Sector Code must be dealt with in terms of Codes 100-500 of the Codes.