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B-BBEE Affidavits for Small Businesses

B-BBEE Affidavits for Small Businesses

A business below the Exempted Micro Enterprise turnover threshold does not need a verified certificate. A sworn B-BBEE affidavit, commissioned at a police station or by a commissioner of oaths, is sufficient.

This matters commercially, because corporate and government clients ask for B-BBEE status routinely, and a verification exercise costs money that a small business does not need to spend.

How the tiers work

CategoryAnnual turnoverWhat is required
Exempted Micro Enterprise (EME)Below the EME thresholdSworn affidavit
Qualifying Small Enterprise (QSE)Between the EME and QSE thresholdsAffidavit or verification, depending on ownership
GenericAbove the QSE thresholdVerification certificate

The thresholds are set in the codes and are revised from time to time, and sector codes differ from the generic codes. Confirm the current figures for your sector before relying on a category.

What the B-BBEE affidavit says

  1. Your annual turnover falls below the threshold
  2. The percentage of black ownership in the business
  3. The B-BBEE level you therefore qualify for
  4. That the information is true

An EME generally qualifies at a recognised level by virtue of being an EME, and higher levels apply where black ownership passes certain percentages. Because the affidavit is a sworn statement, overstating ownership is not a paperwork error.

When you will be asked

  • Tendering for government or state-owned entity work
  • Onboarding as a supplier to a corporate
  • Any procurement process with a preference-point system
  • Renewing an existing supplier arrangement, often annually

Keep a current one on file. The request almost always arrives with a short deadline attached, and a commissioner of oaths is not always around when you need one.

Common questions

Does it cost anything?

Commissioning an affidavit is generally free at a police station. The cost is your time.

How long is it valid?

Commonly treated as valid for twelve months. Clients may set their own requirements.

Do I need one if I have no black ownership?

You can still swear an affidavit stating your turnover and ownership. It establishes your status either way.

Keep your compliance documents current and your invoicing simple. Free to use.

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Sources
  • Department of Trade, Industry and Competition, B-BBEE Codes of Good Practice

Disclaimer: This content is for general information only and does not constitute legal, tax, accounting or financial advice. Always confirm important requirements with SARS, the relevant authority or a qualified professional.

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