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Structure Selector: Which B-BBEE Ownership Route Fits?

Answer a few questions about your size, your funding and your black partner, and get a grounded starting point — a cash sale, vendor finance, an employee scheme, a broad-based scheme, or an equity equivalent.

Published Last reviewed 6 min read

Written by

Martin Kotze

Attorney, Conveyancer & Notary Public

Quick answer

Run the selector

Answer each question as it appears. The path follows the decision logic in choosing a structure, and every result names the part of the guide it rests on.

Find a starting point

  1. 1.What are you actually trying to do?

    Most bad BEE deals are bad because they were designed before this question was answered honestly.

This selector points you to a sensible starting point based on the decision path in the guide — it is general guidance, not advice, and it does not decide your structure. The right answer depends on your exact facts, your funding and your black partner. Take independent legal, tax, valuation and B-BBEE advice on the actual documents before you sign. See choosing a structure.

How to use it

The selector gives you a starting point, not a finished structure. Two things matter more than the label it lands on. First, be honest about what you are willing to give up — the scorecard measures exactly what black ownership costs you, so a structure that costs you nothing will score nothing. Second, wherever the answer involves funding, model the net-value line for years one to ten with the net value calculator before you agree the terms — that is where most deals quietly fail.

When you have a shortlist, sketch the deal in the ownership scorecard calculator to see what it actually scores, work through the questions to ask your adviser in choosing a structure, and take independent legal, tax, valuation and B-BBEE advice on the actual documents before anything is signed.

Frequently asked questions

  • No. There is a range of lawful structures differing mainly in who pays, who takes the risk, and how quickly the black shareholder genuinely owns something. The right one depends on your size, your funding and your partner — which is what this selector helps you narrow down. See choosing a structure.

  • Possibly not. An EME (turnover R10m or less) is exempt and automatically Level 4; black ownership lifts that to Level 2 or Level 1 by affidavit — but weigh the gain against the cost, and note that the affidavit’s strict definition must genuinely be met. See what your size means.

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.