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Partnership ยท BEE Compliance

BEE Compliance for Partnerships in South Africa

Last updated: 2026-03-19

BEE compliance for partnerships follows the same general framework as other entities, with the ownership element based on the partners' demographic profile. Since a partnership does not have shares, ownership is measured by each partner's percentage interest (as defined in the partnership agreement) held by black persons.

Partnerships with turnover below R10 million qualify as EMEs and can submit a sworn affidavit. If the aggregate partnership interest held by black partners exceeds 51%, the partnership can claim enhanced EME status (Level 1 or 2). This is straightforward when the partnership agreement clearly defines each partner's interest percentage.

For larger partnerships, the full scorecard applies, and BEE ownership is measured on voting rights, economic interest, and net value โ€” similar to a company. Professional partnerships (law firms, accounting firms, medical practices) often face specific sector code requirements that include management control and skills development targets relevant to the profession.

Key Requirements

  • EME affidavit if turnover below R10 million
  • Ownership based on partner interest percentages
  • BEE verification for partnerships above R10 million turnover
  • Professional sector codes may apply to professional partnerships
  • Anti-fronting compliance

Fees & Costs

  • EME affidavitFree โ€“ R200
  • BEE verificationR5,000โ€“R20,000

Non-Compliance Penalties

  • No direct penalties โ€” BEE is incentive-based
  • Loss of procurement and tender opportunities
  • Fronting: criminal offence

Frequently Asked Questions

How is BEE ownership measured for a partnership?
Ownership is measured by the partnership interest percentages held by black partners. If partner A (black) holds 60% and partner B (non-black) holds 40%, the ownership score reflects 60% black ownership. The partnership agreement should clearly define these percentages.
Do professional partnerships have special BEE requirements?
Some professions have sector-specific BEE codes (e.g., legal, accounting). These codes may have different weightings for management control and skills development that are tailored to the profession. Check if your profession has a gazetted sector code.
Can a partnership use BEE to access government tenders?
Yes. Partnerships can submit BEE affidavits or verification certificates for government procurement. The partnership's BEE level is used, not the individual partners' levels. A partnership with strong black ownership can compete effectively for preferential procurement.

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Last updated: 2026-03-19