A BEE Certificate is for getting you work from procurement departments!
WHO IS BLACK PERSON IN SOUTH AFRICA?
A Black person, is as all people who may have been disadvantaged under the apartheid government, and includes Black, Coloured, Indian or Chinese demographics. However the individual must have been a citizen before 1994.
Example : A Chinese immigrant who has only received citizenship in 2005 would not be considered ‘Black’ as defined by the act.
DO 100% BLACK-OWNED BUSINESSES NEED A BEE CERTIFICATE?
Yes and No! No because by law you don’t need one but YES because in real life it will be required most often, because you may find in the New South Africa, that more business opportunities are available to you if you have a BEE Certificate. If you are a supplier to the manufacturing, or retail industry, you might find that your buyer requests that you have certification. You have to be certified if you want to tender.
In almost every way, having a BEE Certificate in todays business economy is useful and an advantage to your company. A BEE Certificate could be requested by one of your suppliers or customers without warning and being able to answer that you are compliant gives a good impression of your company. As it only takes a few days to organise why not register yourself today?
IS IT HARD TO GET A BEE CERTIFICATE?
The greater the turnover the harder and more expensive it becomes and the harder it is to do? For most companies (except architect and travel industries) whose turnover is less then 10 million, they only require a BEE Exemption certificate. This can be easily done in a few days for prices starting at R490.
For companies who have larger turnover, an office visit is required, where a government approved agent will test you concerning a variety of areas. If you have to do this the cost of a BEE Certificate rises very quickly.
WHAT IS SANAS AND SANAS CERTIFICATION
SANAS is the government agency, who accredits companies to do BBBEE certification. There are only a few companies is South Africa that can issue SANAS approved certificates.
If you are not exempt from proper certification, then you will need a SANAS approved company to visit you and score you in accordance with the required prerequisites. They will then issue you with a SANAS approved certificate.
WHAT ARE THE DIFFERENCE BETWEEN THE LEVEL 1,2,3,4?
The smaller the number the better the level. In the past we had level 3 and level 4. Level 3 is better the level 4. Level 4 is intended by white owned companies, or companies where more then 50% of their shareholding is white. The mark for level 4 is 100%, and level 3 is 110%
Level 3 was the best option if you are majority Black Owned (see definition of Black above). In a nutshell if you have a level 3 certification, your quote might be 10% more costly then your Level 4 competition and you could still win the tender.
A new series of codes were released in October 2013, listing the new codes of Level 1 and 2 for companies who don’t appear in specific sectors. This means that a Black Owned company could get a Level 1, which equates to 135% Bee Rating as an EME.
Generally, if you are 100% Black owned, you will receive a level 1 certificate. In unique cases, certain departments in South Africa might not yet recognise this level (they are outdated departments as this law is now over two years old) and you might be disqualified. In these cases you are welcome to request a level 3 instead.
AND WHAT HAPPENS IF I AM WHITE AND CALL MYSELF BLACK?
Manipulating the system is a serious legal offence. Copies of ID’s are required and they are used as basic testing in this regard.
WHAT YOU NEED TO DO A BEE CERTIFICATE
- Company Registration Docs
- ID documents of each director (Certified)
- Application form of the BEE issuer company. (Completed)
- Affidavit from the BEE issuer company needs to be signed.(Completed)
FOR PTY’S ONLY
A copy of your Share Certificates
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