Harvest BEE Solutions is a division of Harvest Chartered Accountants Inc. IRBA B-BBEE approved Auditors
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- Mervin Jacobs
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1 HARVEST CHARTERED ACCOUNTANTS INC. PHYSICAL AND POSTAL ADDRESS: Head Office: 1001 East Rand Junction Office Park 23 Frank Road, Bardene, Boksburg, 1459 Tel: (+27) Fax: (+27) Harvest BEE Solutions is a division of Harvest Chartered Accountants Inc. IRBA B-BBEE approved Auditors JHB Branch: 2 nd Floor Marble Towers, Cnr Jeppe and Von Wielligh, Johannesburg Tel: (+27) Fax: (+27) info@harvestbee.co.za Web: Good day Thank you for choosing Harvest Chartered Accountants to complete your EME verification process. PLEASE ENSURE YOU PROVIDE ALL THE DOCUMENTS LISTED ON THE CHECKLIST ON PAGE 4. If you do not have some of these documents, please give us a call so our consultants can assist you and advice how to proceed. To initiate the process we will require certain information and supporting documents. This application pack consists of the following sections which need to be carefully studied and thoroughly completed: Section 1: EME Certification Services - Definitions Section 2: Certification Information Requirements All fields are required to be completed Section 3: Exempted Micro Enterprise Affidavit Must be signed by a commissioner of oaths Section 4: Supporting Documentation Required Checklist Annexure A Share Certificate Application (does not apply to Close Corporations, Non-Profit Organisations or Sole Proprietor. This form only applies only to private companies i.e. (Pty) Ltd that do not have share certificates on application for a BEE Certificate) Please complete the relevant sections and return to us by at bee@harvestca.co.za or fax to Yours Faithfully Harvest BEE Solutions, a division of Harvest Chartered Accountants IRBA Membership number: IRBA BEE Registration Number: b
2 Section 1: Definitions and Frequently Asked Questions WHAT IS AN EME? An Exempt Micro Enterprise is any enterprise with an annual total revenue of less than R10 million OR a recently incorporated entity that has been in existence for less than one year ( Start-up enterprise ). EMEs do not need to be rated, but they do need to be able to provide reasonable evidence that they are EMEs. In terms of the Revised BEE Codes, EME s automatically have a BBBEE procurement recognition of 100% and are deemed to have a B-BBEE Status of a Level 4 Contributor. If an EME is at least 51% black owned, its rating is increased to that of a Level 2 Contributor having a B-BBEE procurement recognition of 125%. Enterprises that are 100% black owned will receive a Level 1 Contributor rating with a B-BBEE Procurement Recognition of 135% Navigating the New and Old BEE Codes Quiet a lot has changed with the implementation of the New Codes. As per the New Codes, the turnover threshold for an Exempt Micro Enterprise is now R10 million, however such entities only require an Affidavit as proof of their EME Status. The New Codes make no provision for a BEE Certificate and neither SANAS agencies nor IRBA auditors may issue certificates under the new Codes. However there is a transitional period that allows entities to still be rated under the old codes should they choose to do so What options do EME s? Type of entity Black owned companies registered ONLY AFTER February 2015 Option 1 Affidavit under New Codes (Turnover less than R10 million) Option 2 BEE Certificates under Old Codes (Turnover less than R5 million) Affidavit under the New Codes More than 51% black-owned = Level 2 100% black-owned = Level 1 N/A Black-owned companies MORE than a year old *Year must be before 01 May 2015 Affidavit under the New Codes More than 51% black-owned = Level 2 100% black-owned = Level 1 BEE Certificate under the Old Codes 51% to 100% black-owned = Level 3 White-owned and Non-South African owned entities *Year must be before 01 May 2015 Affidavit under the New Codes 51% to 100% white-owned = Level 4 51% to 100% non-sa owned = Level 4 BEE Certificate under the Old Codes 51% to 100% white-owned = Level 4 51% to 100% non-sa owned = Level 4 WHO QUALIFIES FOR A BEE CERTIFICATE UNDER THE OLD CODES? 1. Entities under the General Codes whose financial period under review for the BEE Verification is before 01 May 2015 may still be verified under the old codes. If the entities financial period falls after 01 May 2015, the entity will need to be rated under the new codes. 2. Entities which fall under the various sector codes such as Tourism, Transport; with the exception of entities in the Construction and Chartered Accountancy Sector Codes which have been repealed by the DTI as of 17 February Entities whose financial period under review falls after 01 May 2015 DO NOT qualify for a BEE Certificate and will need to be rated under the New Codes, this means they will receive an Affidavit instead of a BEE Certificate. PLEASE ENSURE YOU QUALIFY FOR A BEE CERTIFICATE UNDER THE OLD CODES BEFORE APPLYING.
3 Section 2: Information Requirements The following must be completed and returned to ALL FIELDS ARE COMPULSORY PLEASE INDICATE THE FORM OF EME STATUS CONFIRMATION YOU REQUIRE EME AFFIDAVIT (New Codes) Only Level 1, 2 and 4 EME BEE CERTIFICATE (Old Codes) Only Level 3 and 4 1. Name of company/person or entity being verified:.. 2. Other Trading Names:.. 3. Registration Number: 4. VAT Registration Number : Contact person: Position: Tel: ( ) Fax: ( ) Cell: ( ) Financial Information: (THESE ARE COMPULSORY FIELDS Put a R0 if the entity has not been trading) Please provide the annual turnover of the company Please provide the annual payroll spend Please select the primary industry within which the company operates Agriculture Financial Services Chartered Accountants Information and Communication Technology Property Chartered Accountants Transport & Freight Forestry Construction Works - Contractors Construction - Built Environment Professional Tourism and Hospitality General Trading (Anything other than the above) Other: Please specify PLEASE GIVE A DESCRIPTION OF YOUR PRINCIPAL BUSINESS ACTIVITIES
4 Section 3: Exempted Micro Enterprise Affidavit UNDERTAKING BY THE REPRESENTATIVE OF THE ENTITY (THIS MUST BE SIGNED BY ANY ONE OF THE DIRECTORS OR MEMBERS OF THE COMPANY, NO AFFIDAVIT WILL BE ACCEPTED UNLESS IT IS COMPLETED BY A MEMBER OR DIRECTOR) I, the undersigned, Entity representative (Full Name): Position within the entity: Identity number of entity representative: Name of entity: Registration number (if applicable): I HEREBY STATE UNDER OATH / SOLEMNLY AFFIRM: 1. I am an adult male/female and by submitting this form I declare that I have the required authority to do so. 2. I hereby declare that the turnover of the entity for the current year is R. 3. I hereby declare that the shareholding structure of this entity is as listed below: Individual / Corporate / Organization Shareholders Percentage Holding Race Gender Operational Involvement Voting Rights Name % A / I / C / Chinese / W / NSA F/M Yes/No % Citizenship for Non-South Africans Pre 1994 / Post 1994 Total Holdings 0% A = African/Black South African; I = Indian; C=Coloured; W=White; NSA=Non-South African 4. I hereby declare that the information supplied in this affidavit is true and correct to the best of my knowledge. I understand that providing false information or failing to provide the information required constitutes a misrepresentation. I agree and accept that HARVEST CHARTERED ACCOUNTANTS may wish to verify the correctness of the information I have provided. SIGNED AT ON THIS THE DAY OF 20. SIGNATURE: COMMISSIONER OF OATHS I HEREBY CERTIFY that the representative has acknowledged that he knows and understands the contents of this Affidavit. Commissioner of Oaths: Place of signing: Date:
5 Section 4: Supporting Documentation Required PLEASE NOTE: ONLY Start-Up enterprises (registered within the last 12 months) do not need to provide proof of income. Entities that are older than a year and have not traded since registration or in the last financial year will need to provide sufficient proof that they haven t traded. Please return the completed form and stamped affidavit with the supporting documents listed below to bee@harvestca.co.za Required documents for: CLOSE CORPORATION Check Letter from accountant confirming company is trading under R10m/Financial Statement/ 12 months Bank Statements which must fall within the financial period under review. CK1 / CK2 document ID copies of all members SOLE PROPRIETOR Letter from accountant confirming company is trading under R10/Financial Statements/ 12 months Bank Statements which must fall within the financial period under review. ID document Sole Proprietor letterhead with trading name and business address PRIVATE COMPANY Certificate of incorporation/registration Document Letter From Accountant confirming company is trading under R10m /Financial Statements/ 12 months Bank Statements which must fall within the financial period under review. Shareholder s ID(s) copies Shareholders agreement OR Share certificates (See Annexure A for application forms if you do not have these documents) NON PROFIT ORGANISATIONS Registration document/ Certificate of incorporation Members/Incorporators ID Copies Most Recent Audited Financial Statements /Financial Statement/ 12 months Bank Statements which must fall within the financial period under review. Organisation s Profile A list of beneficiaries indicating race, gender and disabilities if any CO-OPERATIVES Registration document/certificate of incorporation Members/Incorporators ID Copies Constitution clearly reflecting shareholding
6 Annexure A Share Certificate Application form This form does not apply to Close Corporations, Non-Profit Organizations or Sole Proprietors. It only applies to Private Companies i.e. (PTY) Ltd and Limited Liability (Inc) entities that do not have a shareholder s agreement or share certificates. As one of the pillars of BEE is ownership, proof of ownership is needed for Private Companies. A share certificate costs R150 incl VAT per shareholder. Shareholder details: Shareholder no 1 Shareholder no 2 Shareholder no 3 Shareholder no 4 Shareholder no 5 Signed at on the day of 20.
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