Exempt Micro Enterprises (EME)
What is an Exempt Micro Enterprise?
These are South African enterprises with annual revenues of under *R10-million or those that have been operating for less than a year.
What BEE level does an EME qualify for?
- EMEs automatically qualify for a B-BBEE Level 4 status and receive full 100% procurement recognition, irrespective of ownership status.
- EMEs with more than 51% black ownership are eligible for a B-BBEE Level 2 status, benefiting from 125% procurement recognition.
- EMEs that are entirely black-owned qualify for a B-BBEE Level 1 status, which includes 135% procurement recognition.
How to obtain a BEE level as an EME
An EME is exempt from having to comply with the B-BBEE scorecard requirements, and merely needs to prove that their annual turnover is below the required turnover threshold.
For this, they can submit a sworn affidavit that functions as their B-BBEE Certificate.
Download EME Affidavit
