Search legal guides

Search MJ Kotze Inc legal guides and articles

Reference & tools

EME, QSE or Generic? B-BBEE Status & Level Checker

Three questions — turnover, black ownership and how the shares were paid for — and you know your category, your automatic level (if any), and whether an affidavit is safe to sign.

Published Last reviewed 5 min read

Written by

Martin Kotze

Attorney, Conveyancer & Notary Public

Quick answer

Run the checker

Three questions, and every outcome tells you the category, the level (where one is automatic), the proof route, and what to confirm before anything is signed.

Where do you land?

  1. 1. What is your annual turnover?

    First check whether a gazetted sector code applies to your industry — if it does, its thresholds may differ from these generic ones.

Categories, elevation and the “51% Black Owned” definition per Statement 000 and Schedule 1 of the Amended Codes (as replaced in 2019). A start-up is measured as an EME in its first year regardless of expected turnover. If a gazetted sector code applies to your industry, its thresholds govern instead. General guidance, not advice — and a false affidavit is a criminal offence, so when in doubt, calculate before you sign.

The affidavit trap, in one paragraph

The affidavit route is the cheapest, fastest B-BBEE status there is — and the most dangerous to get wrong, because there is no verification agency standing between what you sign and your status. You are the only check. The percentage must be worked out on the ordinary flow-through basis (not the 51% short-cut), and the strict definition requires the net-value leg to be satisfied.

Frequently asked questions

  • A sworn affidavit (the dtic publishes the official template) or a CIPC certificate, renewed annually. An EME does not need — and should not pay for — a verification certificate. The affidavit states the turnover and black-ownership percentage, and signing a false one is a criminal offence.

  • Only if it is at least 51% black-owned, measured on the ordinary flow-through basis. Below that, a QSE is measured on the Statement 601 scorecard and verified by an accredited agency in the ordinary way.

  • Because the elevation uses the defined term “51% Black Owned”, which has three cumulative legs: 51% of the votes, 51% of the economic interest, and having earned all the net-value points. Net value deducts outstanding acquisition debt — so a loan-funded deal may not qualify however the register reads, while a cash purchase or genuine free carry ordinarily does. See net value explained.

For the businesses we act for

The Keystone Workspace

The attorney-designed platform the businesses we act for use to run their contracts, e-signatures and company secretarial work in one place.

Why you can trust this: Martin Kotze has been an admitted Attorney of the High Court of South Africa, registered Conveyancer, and Notary Public since 2014, practising from Pretoria. The firm is regulated by the Legal Practice Council under firm registration 17444.

This guide is general information, not legal advice for your specific matter.

Work with an attorney

Structure black ownership that scores — and stays clear of fronting

Martin Kotze structures B-BBEE ownership deals end-to-end — the share sale or scheme, the funding, the trust or company, and the shareholders’ agreement. General guidance on this page is not a substitute for advice on your facts.