South African businesses with annual revenue of less than R10 million or less than 1 year old qualify as an Exempt Micro Enterprise and can automatically receive a B-BBEE Level 4 rating, which can be further improved with 51% or more black ownership.

Exempt Micro Enterprise BEE Levels:

  • Automatic qualification and recognition of B-BBEE Level 4, and a 100% procurement rating, regardless of ownership.
  • EMEs with over 51% black ownership qualify for B-BBEE Level 2, with a 125% procurement rating.
  • EMEs that are 100% black-owned  automatically qualify for B-BBEE Level 1, with a 135% procurement rating.

Exempt Micro Enterprises can submit a sworn affidavit that functions as their B-BBEE Certificate.

Frequently Asked Questions

What is an Exempt Micro Enterprise?

An exempt micro enterprise (EME) is a company with annual revenue of lower than R10 million. These businesses automatically qualify for a BEE Level 4 rating. Increasing black ownership to 51% or more will qualify an EME as a Level 2 contributor, while 100% black-owned EMEs qualify as Level 1.

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