Issue Date: 
Thursday, January 31, 2019

8 things you must know about Joint Ventures

By Werner van Rooyen

31 January 2019

One of the most popular types of business arrangements that are being used by South Africans, in the Tender environment, is Joint Ventures.

There are eight things that you must know about Joint Ventures:

  1. Definition

A Joint Venture is a strategic cooperation where two or more people and/or companies agree to contribute goods, services and/or capital to a common commercial enterprise for the purpose of a specific tender or request for proposal.

  1. Difference between a Joint Venture and a Private Company

The moment two or more people and/or companies come together; to do business together it can be construed of being a Joint Venture. But once these parties to this business register a formal private company then it is no longer a Joint Venture.

  1. Difference between a Joint Venture and a Partnership

A Joint Venture often sounds much like a Partnership but the main difference between a Joint Venture and a Partnership is that the members of a Joint Venture have come together for a specific Tender or Request for Proposal, while a Partnership is usually formed between two or more people to run a business for an unlimited period of time.

  1. Share expenses

Each member of a Joint Venture only share the expenses of the specific Tender for which the Joint Venture was established.

  1. Income Tax

Each member of a Joint Venture is liable for their own Income Tax. If the Joint Venture is profitable the net income of the Joint Venture will be distributed to each member of the Joint Venture according to their percentage contribution towards the Joint Venture. The members will then be tax in their individual capacity or if the member of the Joint Venture is company, then the gains of the Joint Venture will form part of the income of the company and will be taxed according to company tax legislation.

  1. Ownership

Very important to realize is that each member of the Joint Venture retains ownership of their own personal fixed assets as well as their current assets.

  1. Bank account

It is important to open a separate bank account for the Joint Venture. You do not want your private funds to get entangled with the funds of the Joint Venture.

  1. Set of accounts

Always keep a separate set of accounts for the Joint Venture. You don’t want the Joint Venture transactions to get mixed up with your own transactions or those of your company.

So remember, before you dismiss a Tender or Request for Proposal as undoable, think of teaming up with other businesses and/or people in the form of Joint Venture and bid through the Joint Venture.

To learn more about this and many other tender conditions attend our “Become a Tender Expert” 2-Day workshops presented in Johannesburg, Pretoria, Durban, Port Elizabeth and Cape Town. Book and pay online at www.howtotender.co.za. Please contact Estelle at Estelle@howtotender.co.za should you require more information.

This article was written by Werner van Rooyen, Director of HowToTender (Pty) Ltd which specializes in tender consulting and tender training.

Title Closing Date Tender No.
RFI Tests At Large Anechoic Chambers 2019-11-08 11:00 NRF SARAO RFI 001 2019
Appointment of a panel of service providers that will provide printing services to NRF|SAASTA for a period of 36 months (3 years) 2019-11-15 11:00 NRF/ SAASTA/ 07/ 2019- 2020
Request For Proposals: Appointment of a Suitable Service Provider to Implement The Women Empowerment Programme for a period of two (02) years 2019-11-08 11:00 NHBRC 20/ 2019
The objective of this tender is to procure an Internal Audit Services for three (3) years 2019-11-07 12:00 RFP008/ 2019
Supply, Delivery, Registration of Fleet and Installation of Vehicle Tracking System for a Period of Three Years 2019-10-31 11:00 LNW 17/ 19/ 20
Provision of Vehicle Tracking Services for a Period of Three Years (Rental Basis) 2019-10-31 11:00 LNW 28/ 18/ 19
The Development of Standard Operating Procedures for Supply Chain Management, Human Resources Management and Policy Development 2019-11-08 11:00 GT/ OoP/ 068/ 2019
Request for proposals for appointment of a service provider to offer Capacity Building Programme on Business Financial Literacy to SMMEs in all nine provinces. 2019-11-11 11:00 NDT0030/ 19
The Department of The Premier Wishes to Invite Suitably Qualified Service Providers to Conduct Comprehensive Lifestyle Audits and Analysis of Business Interests of The 11 Members of The Executive Council (Cabinet) and Their Spouses’/ Life Partners 2019-11-08 11:00 FMA 0009- 2019/ 20
Appointment of a Service Provider for the Feasibility Study, Complete Design and Construction Monitoring for Makhathini Cotton GIN at Jozini Local Municipality within Umkhanyakude District Municipality In KwaZuluNatal 2019-11-08 11:00 SS- KZN 7/ 1/ 6/ 3 (725) 000R
Appointment of a Professional Service Provider in Consortium / Multi-Disciplinary Consisting of Architectural, Civil and Structural, Mechanical, Electrical and Quantity Surveying Services for the Project: Development of Infrastructure and External Services for Carmel Estate Farmer Production Support Unit (FPSU) in Mogale City Local Municipality, West Rand District In Gauteng Province. 2019-11-11 11:00 5/ 2/ 2/ 1 CRDP- 0002 (2019/ 2020)
Appointment of a service provider to undertake impact assessment and awareness drive of the Public Works and Infrastructure green building policy. 2019-11-12 11:00 H19/ 003GS
Professional Services for the detail Assessment,rehabilitation design,contract documentation and site supervision of respective bridges in the Vereeniging and Benoni regions within the Gauteng province. 2019-11-18 11:00 DRT 19/ 02/ 2019
Construction of Road K46 (P79/1) Phase 2 Between Pwv 5 and N14 (P158/2) (Diepsloot) 2019-11-19 11:00 DRT 17/ 12/ 2018
Land Ports of Entry: Oshoek, Nerston, Waverly and Josefsdal: Appointment of a service provider/s for the maintenance and repairs of building, civil, mechanical,electrical infrastructure and installations at the four Ports of Entry for a period of 36 months 2019-11-12 11:00 H19/ 021 AI
Appointment of a Contractor for Land Ports Of Entry: Kopfontein, Swarkopfontein and Derdepoort: Appointment of a service provider for the maintenance and repairs of building, civil, mechanical, electrical infrastructure and installations for a period of 36 months 2019-11-11 11:00 H 19/ 022 AI
Western Cape: Dept of Justice & Constitutional Development: Magistrate’s Offices: Install boreholes, water tanks and pumps: Multi disciplinary Consultant: Civil, Mechanical & Electrical Engineer 2019-11-08 11:00 CPTC007/ 19
Appointment of a service provider to render security service for period of 12 months. 2019-11-18 12:00 SCC 78/ 2019
Appointment of an OEM Accredited Kofax Service Provider (S) for the Implementation, Maintenance and Support of Kofax Scanning Solution for a period of three (3) Years 2019-11-15 11:00 RFB 2019 09
Supply and delivery of 111 units x 8 seater stainless steel top dining room tables with epoxy powder coated mild steel tube fixed chairs: Ekuhlengeni Hospital 2019-11-07 11:00 ZNB 9563/ 2019- H

Pages

8 things you must know about Joint Ventures

By Werner van Rooyen

31 January 2019

One of the most popular types of business arrangements that are being used by South Africans, in the Tender environment, is Joint Ventures.

There are eight things that you must know about Joint Ventures:

  1. Definition

A Joint Venture is a strategic cooperation where two or... Read More

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