Introduction
Broad-Based Black Economic Empowerment (B-BBEE) compliance is crucial for businesses aiming to contribute to economic transformation and inclusivity. The Companies and Intellectual Property Commission (CIPC) plays a significant role in facilitating B-BBEE certification for eligible entities. Let’s explore the process of obtaining B-BBEE certificates through affidavits and understand their implications.
What Is an Exempted Micro Enterprise (EME)?
An EME is a business with a turnover of less than R10 million. These enterprises are exempt from the requirement to produce a formal B-BBEE certificate. Instead, they can compile an affidavit indicating their B-BBEE status and shareholding.
The B-BBEE Affidavit Process
- Eligibility: EMEs can apply for a B-BBEE certificate (affidavit) during business registration or when filing annual returns.
- Affidavit Completion: Customers complete an affidavit, which must be signed by a commissioner of oaths.
- Stamping and Validity: Once stamped by a commissioner of oaths, the affidavit serves as a valid B-BBEE certificate. No further verification is required for EMEs.
- Free of Charge: CIPC provides B-BBEE certificates to EMEs at no cost.
- Validity Period: The certificate is valid for 12 months from the date of issue and cannot be renewed. After expiration, a new application must be filed.
- Application Restrictions:
- Only directors/members of entities can apply for B-BBEE certificates; intermediaries or third parties are not allowed.
- Providing incorrect shareholder information is a criminal offense.
- Applications cannot be amended once submitted; changes are recorded when applying for a new certificate after expiration.
- Entities with at least one foreign director/member do not qualify for CIPC B-BBEE certificates.
- All directors/members’ contact details must be up to date to receive a unique OTP (One-Time PIN) during the application process.
Why Choose B-BBEE Affidavits?
Simplicity: EMEs benefit from a straightforward process without the need for extensive verification.
Cost-Effective: Affidavits are free, making compliance accessible to small businesses.
Legal Compliance: EMEs fulfill their B-BBEE obligations without the burden of formal certification.
Conclusion
B-BBEE affidavits empower EMEs to participate actively in economic transformation. By simplifying compliance, CIPC supports these enterprises in contributing to a more inclusive South African economy.
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