Frequently Asked Questions
Let us know should there be anything that you don’t understand
WHAT IS BLACK ECONOMIC EMPOWERMENT (BEE)?
This is an integrated and coherent socio-economic process that directly contributes to the economic transformation of South Africa and brings about both significant increases in the number of black people that manage, own and control the country’s economy as well as significant decreases in income inequalities.
WHAT IS "BROAD-BASED BLACK ECONOMIC EMPOWERMENT (BBBEE)"?
This means the economic empowerment of all black people including women, workers, youth, people with disabilities and people living in rural areas through diverse but integrated socio-economic strategies that include but are not limited to :
- increasing the number of black people that manage, own and control enterprises and productive assets
- facilitating ownership and management of enterprises and productive assets by communities, workers, cooperatives and other collective enterprises
- human resource and skills development
- achieving equitable representation in all occupational categories and levels in the workforce
- preferential procurement – investment in enterprises that are owned and managed by black people
DO I HAVE TO GIVE AWAY MY SHARES IN ORDER TO OBTAIN A GOOD B-BBEE RATING?
No. Depending on the size of your entity, your score may not even take into account the element of “Ownership”. You can also sell a part of your shares at a market related price in order to get ownership points.
WHO IS REFERRED TO AS "BLACK" ACCORDING TO THE CODES OF GOOD PRACTICE?
- are citizens of the Republic of South Africa by birth or descent; or
- are citizens of the Republic of South Africa by naturalisation before the commencement date of the Constitution of the Republic of South Africa Act of 1993; or
- became citizens of the Republic of South Africa after the commencement date of the Constitution of the Republic of South Africa Act of 1993, but who, but for the Apartheid policy that had been in place prior to that date, would have been entitled to acquire citizenship by naturalisation prior to that date;
SHOULD ANNUAL FINANCIAL STATEMENTS BE SUBMITTED WHEN DOING A NON-COMPLIANT B-BBEE CERTIFICATE?
Yes. Annual Financial statement are a general required document that needs to be submit even if you request a Non-Compliant Certificate. It is not required to be Audited Financial Statements.
DO I NEED TO RENEW MY B-BBEE CERTIFICATE YEARLY?
Yes. A B-BBEE Certificate needs to be renewed every year. A B-BEE Certificate expires twelve months after it has been issued.
HOW LONG DOES THE VERIFICATION PROCESS TAKE?
Approximately 3-5 weeks depending on what documents we receive and whether it is correct. When urgency fees are paid, a verification is prioritized and takes less than 7 working days form receiving all the documentation depending on how urgent the client needs the certificate.
WHAT IS THE PURPOSE OF THE BBBEE ACT?
- To establish a legislative framework for the promotion of black economic empowerment;
- To empower the Minister to issue codes of good practice;
- To publish transformation charters;
- To establish the Black Economic Empowerment Advisory Council
WHO ARE SEEN AS BEING PART OF "BLACK DESIGNATED GROUPS"?
“black designated groups” means:
- black workers;
- black unemployed people;
- black youth;
- black aged people;
- black people with disabilities; and
- black people living in rural areas
WHO IS REFERRED TO AS "BLACK" ACCORDING TO THE CODES OF GOOD PRACTICE?
“black people” is a generic term which means African, Coloured or Indian persons who are natural persons and:
- are citizens of the Republic of South Africa by birth or descent; or
- are citizens of the Republic of South Africa by naturalisation before the commencement date of the Constitution of the Republic of South Africa Act of 1993; or
- became citizens of the Republic of South Africa after the commencement date of the Constitution of the Republic of South Africa Act of 1993, but who, but for the Apartheid policy that had been in place prior to that date, would have been entitled to acquire citizenship by naturalisation prior to that date;
IS IT COMPULSORY TO HAVE A B-BBEE CERTIFICATE?
No, it is not compulsory, but businesses who have a B-BEE Certificate are more likely to have more business opportunities than businesses who does not have a B-BEE Certificate. Some clients and government require a B-BBEE certificate in order to do business with them.
CAN B-BBEE VERIFICATION AGENCIES ALSO CONSULT?
No. B-BBEE Verification Agencies may only verify businesses.
WHAT IS THE PROCESS TO OBTAIN A B-BBEE CERTIFICATE?
Step 1: Application
Ask us for a quote via phone or e-mail.
Step 2: Acceptance
If you qualify for a B-BBEE Certificate, we will send you a list of all the documentation required for the verification.
Step 3: Preparation:
In this step we will start verifying all your supporting documents.
Step 4: Verification On-Site
An On-Site verification will take place after the document verification has been done.
Step 5: Final Certification
Last but not least is the reviewing of your file after which you will receive your B-BBEE Certificate.
WHAT CAN I DO IF MY COMPANY’S OWNERSHIP CHANGES AFTER I HAVE BEEN VERIFIED?
The B-BBEE certificate can be updated during the year by re-evaluating specific elements. The revised certificate will have a new revision number and issue date, but the expiry date will remain the same.