In this article, we focus on the basic criteria of the Property Sector Charter within the scope of the B-BBEE Act, Number 53 of 2003 in relation to Exempted Micro Enterprises (“EMEs”).
The original charter was gazetted on 01 June 2012 as Gazette Number 35400 and subsequently amended by Gazette 40910 on 09 June 2017. The amended charter is extensive in detail and contains criteria vastly different to that of other sector charters.
Exempted Micro Enterprises (“EMEs”) will be exempt from obtaining a B-BBEE verification certificate and will automatically be awarded a level 4 recognition however, if black ownership exceeds 51%, the enterprise will be awarded a recognition level of 2 and a 100% black-owned EME qualifies for level 1 status.
Any enterprise with an annual total turnover of R10 million or less qualifies as an Exempted Micro-Enterprise for the below mentioned property segments, will apply as shown in the table below:
An Exempted Micro-Enterprise is initially 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 with zero black ownership.
Enhanced B-BBEE recognition level for an Exempted Micro-Enterprise:
Exempted Micro Enterprises are allowed to be measured in terms of the Qualifying Small Enterprise (“QSE”) scorecard should they wish to maximize their points and move to the next procurement recognition level.
This article is provided for information only and does not constitute the provision of professional advice of any kind.