Exempted Micro Enterprises (EME's) are businesses that are exempt from measurement in terms of the DTI's codes of Good Practice for BEE. They automatically qualify as 100% contributors towards BEE, this offers small South Africa

South Africa

The Republic of South Africa is a country in southern Africa. Located at the southern tip of Africa, it is divided into nine provinces, with of coastline on the Atlantic and Indian oceans...

n businesses the opportunity to grow as a result of BEE irrespective of the make-up of the shareholding.

In terms of Paragraph 4 of the DTI's 'Codes of Good Practice for BEE'

Turnover required for Exemption

In terms of the Broad-Based Black Economic Empowerment

Black Economic Empowerment

Black Economic Empowerment is a programme launched by the South African government to redress the inequalities of Apartheid by giving previously disadvantaged groups economic opportunities previously not available to them...

 Codes businesses with a turnover of less than R5 Million qualify as EMEs. However during 2009 two sector charters were released that reduced the turnover required for exemption as follows:

• Tourism & Hospitality Charter reduced the turnover required for exemption to R2.5 million for all businesses that are considered to be part of the tourism and/or hospitality Industry
• Construction Charter reduced the turnover required for exemption to R1.5 million for Built Environment
  Built environment
  The term built environment refers to the human-made surroundings that provide the setting for human activity, ranging in scale from personal shelter and buildings to neighborhoods and cities that can often include their supporting infrastructure, such as water supply or energy networks.The built...
  
   Professionals (BEPs), these "provide services related to but not limited to consulting engineering, architecture and quality surveying". Contractors are considered exempt if they have a turnover of less than R5 million.

BEE Recognition of Exempted Micro Enterprises

For Preferential Procurement purposes EME's offer clients at least 100% BEE recognition for any purchases that the client has made from that EME. EME's are required to prove to the client that they do qualify, this commonly takes place through the presentation of an exempt certificate.

• Businesses with a black shareholding of less than 50% automatically qualify as 100% contributors towards BEE
• Businesses with a black shareholding of more than 50% automatically qualify as 110% contributors towards BEE

Exempt Certificates

In terms of the codes of good practice for BEE exempt certificates can be issued by verification agents or auditors/accounting offices provided enough supporting evidence is available to prove exemption. Commonly exempt enterprises obtain BEE certificates in order to ensure that they do qualify.

External links

• ABC for BEE Accredited BEE Verification agency
• Exempt.co.za The most cost effective
  Cost-effectiveness
  Cost-effectiveness analysis is a form of economic analysis that compares the relative costs and outcomes of two or more courses of action. Cost-effectiveness analysis is distinct from cost-benefit analysis, which assigns a monetary value to the measure of effect...
  
   way to get an exempt certificate
• EconoBEE BEE Information and downloads
• BEE.co.za Your Comprehensive Online BEE Information System
  Information system
  An information system - or application landscape - is any combination of information technology and people's activities that support operations, management, and decision making. In a very broad sense, the term information system is frequently used to refer to the interaction between people,...