# Regulatory Compliance Category > General Regulatory Compliance Forum >  SME Status

## Debbiedle

You may all go ahead and laugh.......but don't let me catch you!  
Is there such a thing as an OFFICIAL SME status?  Special documents/scorecards such as the BEE scorecard?

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## IanF

I was going to offer a certificate for this, but I decided to be honest and say no official definition. The BEE codes give the best definition, but this depends on the industry.  :Whistling:

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## Debbiedle

Thanks Ian, this is sorta kinda what I thought but then I have this huge corporate giant asking me in their supplier docs for SME proof!!!  Sometimes I think I belong in a different simpler world!

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## Dave A

In terms of the National Small Business Act of 1996 (amended 2004), there is a defined table - Schedule 1 - that defines the various business categories. This table has been used for official (government) definitions for some time since and as far as I can tell, remains unammended.

Follow the link above and go to the bottom of the document.

As far as I know, there is no "verification agency" type process. A letter from your accountant/auditor confirming the relevant details should suffice as evidence.

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## IanF

Dave
Thanks for that, I didn't know about this act.

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## Dave A

Ian, you might still be on track with the BEE definition anyway. It depends what the company wants it for. If it's part of a preferential procurement assessment, the generic BEE codes of good practice definition would apply.

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## SilverNodashi

Dave, maybe you can clarify something. For a small company with less than 5 staff, what is the BEE requirements, and does one NEED to have BEE status?

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## Dave A

If your turnover is under R5 million per annum, you're an exempt enterprise regardless of the number of staff. If your turnover is more than R5 million per annum, let me know and we can explore that scenario

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## SilverNodashi

ok, but how does that affect if we want to get an investment and BEE is needed?

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## duncan drennan

If your turnover if under R5mil then you automatically classify as a level 7 level 4 (100%) BEE contributor. Typically that value would then be used in a clients procurement BEE calculation.

Somehow I suspect that it all might be academic in some cases though.

What exactly is being asked from you, and what relation do you have to them?

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## Dave A

Erm. Level 4 I think. But the BEE rated spend would be 100% which really should be good enough in most instances.

I'm with Duncan. There are so many possible scenarios it's way easier to analyse a specific circumstance to find the optimum options than to speculate off an undefined base.

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## SilverNodashi

> If your turnover if under R5mil then you automatically classify as a level 7 level 4 (100%) BEE contributor.


Thanx, that explains it nicely  :Smile: 




> What exactly is being asked from you, and what relation do you have to them?


Nothing at all, I'm really just learning about it  :Smile:

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