Which BEE proof do I need for a tender?

Tenders often ask for B-BBEE proof, and choosing the wrong document is a common reason bids fall short. The right proof depends mainly on your annual turnover and your ownership.

Exempted micro enterprises

If your annual turnover is R10 million or less, you are an exempted micro enterprise, or EME. You are Level 4 by default. If you are at least 51 percent black-owned, you are Level 2. If you are 100 percent black-owned, you are Level 1.

Your proof is a sworn affidavit or a CIPC certificate. The CIPC certificate is free for qualifying small entities. Both are valid for 12 months.

Qualifying small enterprises

If your turnover is above R10 million and up to R50 million, you are a qualifying small enterprise, or QSE. If you are at least 51 percent black-owned, you may use the affidavit route. Otherwise, you need a verification certificate from a SANAS-accredited verification agency.

Larger businesses

Above R50 million, full accredited verification is required.

Sector codes

Some industries have their own sector codes, which can change thresholds and rules. It is worth checking whether one applies to you before choosing a document.

A serious note

Fronting, which means misrepresenting ownership or control to gain a better level, is a criminal offence. Your proof must reflect the facts.

What to do now

Find your latest annual turnover and confirm your shareholding. Read the tender requirement carefully to see what proof it accepts. Note the expiry date of any current affidavit or certificate.

If you would like us to confirm which proof fits your tender and prepare it, we are happy to help.