Harvest BEE Solutions is a division of Harvest Chartered Accountants Inc. IRBA B-BBEE approved Auditors
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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: Exempted Micro Enterprise Affidavit Section 3: Supporting Documentation Required Checklist Annexure A Affidavit for Non-trading entities (applies only to entities with that are older than 12 months and have never traded or not traded in the last financial year) Annexure B 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) Annexure C List of Harvest branches and contact details Please complete the relevant sections and return to us by at bee@harvestca.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? Under the Old BEE Codes An Exempt Micro Enterprise is any enterprise with an annual total revenue of less than R5 million. A recently incorporated entity that has been in operation for less than one year (Start-up enterprise) would qualify as an Exempted Micro Enterprise (EME). In terms of the BEE Code of Conduct, EME s automatically have a BBBEE procurement recognition of 100% and are deemed to have B-BBEE Status of Level 4 Contributor. If an EME is more than 50% black owned, its rating is increased to that of a Level 3 Contributor having a B-BBEE procurement recognition of 110%. Under the New BEE Codes 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%. Due to the uncertainty and lack of clarification surrounding the new codes, Harvest CA will not be issuing BEE certificates under the new codes until further notice. To gain clarification on this, you may contact us and ask to speak to a BEE Consultant What constitutes black ownership? To have at least 51% Black Ownership, an entity must meet the following requirements: (a) black people must hold 51% or more of the exercisable voting rights (b) black people must hold 51% or more of the economic interest (c) must have earned all points for Net Value The term black people as defined in the Act includes all Africans, Coloureds and Indians who are citizens of the Republic of South Africa by naturalization: (a) occurring before the commencement date of the constitution of the Republic of South Africa Act of 1993; or (b) occurring after the commencement date of the Constitution of the Republic of South Africa Act of 1993, but who, without the Apartheid policy would have qualified for naturalization before then What is a Value-Adding Enterprise? An entity registered as a vendor under the Value-Added Tax Act of 1991, whose Total Labour Cost PLUS its Net Profit Before Tax exceeds 25% of the value of its Total Revenue, is a Value-Adding Enterprise. If your entity is value adding according to this definition, there will be enhanced recognition of 125%. This means, if you are a value adding enterprise every rand spent will be multiplied by 1.25 first, before applying the relevant contribution status Who can issue a BEE Certificate? In terms of the Broad-Based Black Economic Empowerment Act, an Exempt Micro Enterprise can when requested submit a certificate issued by a registered auditor, accounting officer (as contemplated in section 60(4) of the Close Corporation Act, 1984 (Act No. 69 of 1984)) or a SANAS accredited verification agency. Our certificates for EME s are issued in our capacity as Registered Auditors. We are registered Auditors and approved to issue BEE certificates by the Independent Regulatory Board of Auditors (IRBA).
3 Section 3: Exempted Micro Enterprise Affidavit DON T COMPLETE THIS AFFIDAVIT IF YOUR BUSINESS IS OLDER THAN 12 MONTHS AND HAS NEVER TRADED OR HAS NOT TRADED IN THE LAST FINANCIAL YEAR. Please proceed to the Affidavit for non-trading entities in Annexure A. UNDERTAKING BY THE REPRESENTATIVE OF THE ENTITY I, the undersigned, Entity representative (Full Name): 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:
4 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 older than a year that have not traded since registration or in the last financial year will need to sign the affidavit for non-trading entities. No Accountants letter need 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 R5m (In The absence of an accountant s letter, Financial Statements or 6 Months bank Statements will be needed to confirm the turnover) CK1 / CK2 document ID copies of all members SOLE PROPRIETOR Letter from accountant confirming company is trading under R5m (In The absence of an accountant s letter, Financial Statements or 6 Months bank Statements will be needed to confirm the turnover) ID document Sole Proprietor letterhead with trading name and business address PRIVATE COMPANY Certificate of incorporation Letter From Accountant confirming company is trading under R5m (In The absence of an accountant s letter, Financial Statements or 6 Months bank Statements will be needed to confirm the turnover) Shareholder s ID(s) copies Shareholders agreement OR Share certificates (See Annexure B 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 (In The absence of an accountant s letter, Financial Statements or 6 Months bank Statements will be needed to confirm the turnover) Organisation s Profile
5 Annexure A - Exempted Micro Enterprise Affidavit For Entities that have not traded If your entity is not a start-up (i.e. is older than 12 months) and has never traded/no income then you will need to complete this affidavit. This affidavit replaces the requirement for an accountant s letter/financial statements. This affidavit will not be accepted unless it is stamped by a commissioner of oaths. UNDERTAKING BY THE REPRESENTATIVE OF THE ENTITY I, the undersigned, Entity representative (Full Name): 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 since the date of registration, the above-mentioned entity has not traded and has generated no income since registration or in the last financial year. 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. 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:
6 Annexure A List of Harvest Chartered Accountants Branches Head Office: Office 1001 Block 1, East Rand Junction Office Park 23 Frank Road Boksburg 1459 Tel: Johannesburg CBD: 2 nd Floor Marble Towers, Corner Jeppe and Von Wielligh Johannesburg, 2000 Tel: Limpopo Thohoyandou Office No G2, Sabina Plaza, Mphephu Street, Thohoyandou, 0950 Tel: Mafikeng CBD Shop 11, Corner of Robinson and Main Streets, Mafikeng 2745 Banking Details The banking details for each branch may differ, please refer to your invoice for the banking details. Applications made at Head Office or online may use the following details: Bank Name: Standard Bank South Africa Branch Name: Benoni Branch Code: Account Name: Harvest Chartered Accountants Account Number:
7 Annexure C 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 R100 per shareholder. Shareholder details: Shareholder no 1 Shareholder no 2 Shareholder no 3 Shareholder no 4 Shareholder no 5 We the undersigned director s hereby confirm that shareholding of is as listed above. Signed at on the day of 2014
Harvest BEE Solutions is a division of Harvest Chartered Accountants Inc. IRBA B-BBEE approved Auditors
HARVEST CHARTERED ACCOUNTANTS INC. PHYSICAL AND POSTAL ADDRESS: Head Office: 1001 East Rand Junction Office Park 23 Frank Road, Bardene, Boksburg, 1459 Tel: (+27)86 1111 251 Fax: (+27)86 613 2961 Harvest
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