What is an EME?

An Exempt Micro Enterprise, or EME, is a business with an annual turnover of less than R10 million. The name is the important part: exempt. An EME is largely exempt from the full weight of B-BBEE measurement, and in most cases needs no verification audit at all.

If your business turns over under R10 million, this page tells you exactly what you need. For most readers, the answer will save you money, because what you need is free.

The most important thing to know: you probably don’t need us

An EME does not require a B-BBEE verification audit. It proves its B-BBEE status through a sworn affidavit, or through a free B-BBEE certificate issued by the Companies and Intellectual Property Commission (CIPC).

We are an accredited verification agency. We are telling you, plainly, that if you are a standard EME you do not need to pay us or anyone else for a verification. That is not a marketing angle. It is simply what the Codes provide, and you are entitled to know it.

Your automatic B-BBEE level

An EME’s level is set automatically by its black ownership. No scorecard, no measurement across elements — the level follows directly from ownership:

• Any EME, regardless of ownership: automatically Level 4.
• An EME that is at least 51% black-owned: automatically Level 2.
• An EME that is 100% black-owned: automatically Level 1.

That is the entire system for a standard EME. A Level 4 B-BBEE status requires nothing more than being an EME.

The sworn affidavit

To claim your status, you complete a sworn affidavit: a standard declaration stating your annual turnover and your black-ownership percentage, signed in front of a Commissioner of Oaths.

A few points that catch businesses out:

• The affidavit must be signed by a Commissioner of Oaths. An unsigned or improperly commissioned affidavit is not valid.
• Only a director or member of the business may complete it. A third party cannot complete it on your behalf, and no one is permitted to charge you a fee to provide you with the affidavit itself.
• The government provides the affidavit template free. You can download the official EME affidavit from the dtic. We link to the official template rather than hosting our own, so you always get the current version: thedtic.gov.za.
• An affidavit is valid for twelve months from the date it is commissioned, after which you complete a new one.

The free CIPC certificate

As an alternative to the affidavit, an EME can obtain a B-BBEE certificate directly from the CIPC, online, at no cost. It serves the same purpose. If you can apply digitally, the CIPC certificate is a clean, official route. If you cannot apply digitally, the sworn affidavit is your fallback.

When an EME actually does need verification

There are specific situations where an EME cannot simply use the standard affidavit:

Sector codes with lower thresholds. Some sector codes define an EME differently. In Construction, the EME ceiling is R3 million; in Tourism and Transport it is R5 million. If your turnover sits above your sector’s EME ceiling but below the generic R10 million, you may fall into your sector’s QSE band and need to be measured accordingly. Check the sector codes that apply if you operate in a regulated industry.

Tender-specific requirements. Occasionally a specific tender for a large contract requires a measured scorecard even from a small enterprise. This is a requirement of the tender, not of your EME status. Read the tender terms carefully.

A choice to be measured. An EME is permitted to elect to be measured against a scorecard if it wishes — but for the large majority of EMEs, the automatic level is equal or better, and free.

If one of these situations applies to you, that is the point at which speaking to an accredited agency makes sense. Request a quote and we will confirm whether you genuinely need a verification.

A plain summary

• Under R10 million turnover? You are an EME.
• Standard EME? You are automatically Level 4, Level 2 if 51%+ black-owned, Level 1 if 100% black-owned.
• To prove it: a free sworn affidavit (Commissioner of Oaths) or a free CIPC certificate.
• No audit, no fee, no third party required.
• The exceptions are sector-code thresholds and specific tender rules. If either applies, talk to an accredited agency.

That is the whole of it. If your situation is standard, you now know everything you need and it cost you nothing. If it isn’t, you know the specific question to ask. If your turnover is between R10 million and R50 million, see QSE requirements instead.