From only R450 the EME Certificate is the easiest and most affordable way to get your business verified.
Tourism/ICT Industry: Is your annual turnover less than R2.5 million ?
Landscape/Architect/Construction Industries: Is your annual turnover less than R1.5 million ?
Other Industries: Is your annual turnover less than R5 million ?
THEN YOU QUALIFY AS AN EXEMPTED MICRO ENTERPRISE (EME)
...no matter what your race.
Normal Rate: R549, Special Rate valid till 31 December 2012 - R450.00
It is just this sort of compliance that makes things so tough. I wonder if you could point out the section in the BBBEE Act or the associated codes/statements where is required that EME's need to have a certificate issued by SANAS and in particular ABVA? The EME's are exempted by virtue of reveue/turnover which is a matter of fact. set out in say, a tax return. I would like to follow up on this. Thanks
You are correct: It is not compulsory to have an EME certificate but it does simplify the process. The certificate is valid for 1 year. Every time a client or potential client asks, you will have to provide proof. The certificate will be readily available.
Intended by DTI: As of 1 April 2011, only B-BBEE status level certificates issued by Verification Agencies that have been accredited by the South African National Accreditation System (SANAS) and Registered Auditors approved by the IRBA will be valid.
ABVA is an association with benefit to its Members. As with most associations it is belonging and utilising the resources provided that gives the enables the Member to grow its brand.
It should not give a business more credibility because it has a certificate vs the business with a letter as proof. However, ultimately it is about marketing, branding and public relations and if this was not so important companies would not spend the amount of money they do on growing their brand.
Great. As I thought. I was concerned that it was a new requirement which would be tough because the whole point of EME is that they are, just that, exempt. By virtue of their exemption, they are automatically level 4 contributors (or put it another way, they count 100% towards procurement spend by companies that are QSE's or companies that seek to comply with all 7 statements/codes). Correct? I had not realised that these certifcates were now part of brand building but I can see the logic.
Just a quick additional question, if a EME is 50% black owned, it can jump up a level to be a level 3 contributor (i.e. 110% for procurement). Is this correct? If so, do ABVA members go to the company and see if the 51%+ owner is black or can it be done via documentation/pictures? Would this service be part of the prices you quited or be subject to an additional service charge?
Sorry for the late response Dirk, yes, by virtue of their exemption they count 100% towards procurement spent. The ownership has to be 51% and more to get a level 3 certificate - 110%.The documentation submitted, Declaration, CK and copy of ID's, will be deemed as proof that the representation of ownership is correct. Because there is no addtional service, there is no additional charge.