B-BBEE Certificate and Affidavit: How Small Businesses Get One

What a B-BBEE certificate is and why clients ask for it

Broad-Based Black Economic Empowerment (B-BBEE) is measured under the B-BBEE Act 53 of 2003 and the Codes of Good Practice. Your B-BBEE level (1 is best, 8 is lowest, or non-compliant) tells customers how much of what they spend with you counts towards their B-BBEE scorecard. This is called procurement recognition.

That is why corporates and government departments ask suppliers for a certificate or affidavit: a Level 1 supplier lets them claim 135% of the spend, while a non-compliant supplier gives them nothing. For a small supplier, a valid certificate can decide whether you get onto a vendor list at all.

EME, QSE or Generic: which category are you?

Category	Annual turnover (generic codes)	How you prove your level
Exempted Micro Enterprise (EME)	R10 million or less	Free CIPC certificate, or sworn affidavit
Qualifying Small Enterprise (QSE)	R10 million to R50 million	Sworn affidavit if at least 51% black-owned; otherwise verification by an accredited agency on the QSE scorecard
Generic enterprise	Above R50 million	Full verification by a SANAS-accredited agency

Sector codes differ. Some industries (for example tourism, construction, ICT, financial services and property) have sector codes with different thresholds and rules. If you are in one of these sectors, check its code before relying on the generic figures.

New businesses in their first year are treated as EMEs, based on projected turnover.

B-BBEE levels for EMEs and QSEs

Black ownership	EME level	QSE level (affidavit)	Procurement recognition
100% black-owned	Level 1	Level 1	135%
At least 51% black-owned	Level 2	Level 2	125%
Less than 51% black-owned	Level 4	Needs verification on the QSE scorecard	EME: 100%

“Black people” here means Africans, Coloureds and Indians who are South African citizens by birth or descent, or who became citizens by naturalisation before 27 April 1994 (or after that date if they would have qualified before it). Use the calculator to see where you stand:

Option 1: the free CIPC B-BBEE certificate

CIPC issues B-BBEE certificates electronically to EMEs at no cost, through CIPC e-Services, BizPortal or self-service terminals. The certificate is issued immediately.

Who can use it

• Companies and close corporations with turnover of R10 million or less.
• The applicant must be a director or member. Third parties (including accountants) can’t apply on your behalf.
• The entity must be “In Business” and its annual returns must be up to date.
• No foreign directors or members. Those entities can’t use the CIPC service.
• Directors linked to more than 10 entities can’t apply through CIPC.
• Director contact details must be correct, because an OTP is sent to every director. Fix them first with a director amendment.

Steps on e-Services

1. Log in to e-Services → Transact → B-BBEE Certificates → New B-BBEE Application.
2. Pick the company from your list (up to 20 entities you are a director of) and click Apply.
3. Enter the revenue for the last financial year. Stating it incorrectly is a criminal offence.
4. Verify your identity by entering the ID number and full names of a relative who has shared your surname (sibling, spouse or child). CIPC checks this against Home Affairs.
5. Every director receives an OTP. Enter them all and verify.
6. Answer the shareholding questions: how many shareholders, how many are black, and how many of those are female. Then enter the percentages.
7. CIPC calculates your level and issues the certificate. All directors and black shareholders get an email notification.

Applications can’t be changed once submitted, so check every figure first.

Option 2: the sworn B-BBEE affidavit

If you can’t (or prefer not to) apply online, for example because you have a foreign director or you are a sole proprietor, use the dtic’s sworn affidavit. Once signed in front of a Commissioner of Oaths (at a police station, a bank or an attorney), it serves as your B-BBEE certificate.

The EME affidavit declares:

• the deponent’s name, ID and authority (member, director or owner);
• the enterprise’s name, trading name, registration number, address, entity type and nature of business;
• the black ownership %, black female ownership % and black designated group % (youth, people with disabilities, unemployed, rural and military veterans);
• that turnover for the latest financial year was R10 million or less;
• the resulting level (1, 2 or 4).

The generator in the calculator above fills in this wording from your answers, ready to print and take to a commissioner. QSEs that are at least 51% black-owned use the separate QSE affidavit template from the dtic or the B-BBEE Commission.

Validity, renewal and honesty

• CIPC certificates and affidavits are valid for 12 months. Renew before the expiry date, because clients check it.
• You can apply for a new CIPC certificate any time once the previous one has expired.
• Misrepresenting B-BBEE status is a criminal offence under the B-BBEE Act (fronting). Ownership percentages must match your securities register and your CIPC beneficial ownership filing.

Common B-BBEE mistakes

• Using last year’s certificate after it has expired.
• Claiming ownership percentages that don’t match the share register. Tender panels check this.
• QSEs under 51% black ownership submitting an affidavit instead of being verified.
• Applying through CIPC with outdated director contact details, so the OTPs never arrive.
• Applying while annual returns are outstanding: CIPC will refuse.

Frequently asked questions