Description
Acceptable proof that an entity is an exempted micro enterprise would be a letter from an auditor or accounting officer confirming the annual turnover of less than R5 million or a certificate from a verification agency confirming that the entity is indeed an exempted micro enterprise.The following information would be required in order to obtain such certification:
? Affidavit / declaration that the entity is either a start-up business and/ or does not anticipate exceeding the R5 million threshold during the period of the validity of the certificate.
? Proof of turnover: financial statement management account or even bank statements.
? Proof of BEE status: share certificate for a private company, CK1 or 2 documents for a close corporation, tax returns for a sole proprietor.
It is the duty of the verification agency to ensure that one large entity is not broken up into a number of smaller legal entities to try to circumvent the Codes.
A certified EME is automatically awarded a level 4 BEE-compliance status, and if the EME is more than 50% black owned it is automatically moved up one level to a level 3 status.