BEE for New Companies

Start-up / New Companies:

For the first year proceeding its formation or incorporation, a start-up enterprise is usually measured as an EME (Exempt Micro Enterprise).

  • Start-up enterprises are recognized as B-BBEE compliant with a “Level Four Contributor” status, with a procurement recognition of 100%.
  • A company can be promoted to a “Level Two Contributor”, given that more than 50% is owned by black people or black women. Procurement recognition of 125%.
  • A company can be promoted to a “Level One Contributor”, given that 100% is owned by black people or black women. Procurement recognition of 135%.
  • When tendering for a contract between R10 million and R50 million, a start-up company must submit QSE scorecard.
  • If the value is higher than R50 million, a generic scorecard is to be submitted. This specific scorecard will use annualized data when being prepared.

The enterprise must render a sworn affidavit confirming that the annual income is less than R10 million per annum, as well as the level of black ownership to qualify as a start-up enterprise and EME.

According to the law as set out by the B-BBEE Act, any distortion or misrepresentation constitutes a criminal offense.