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.
IT Services 2019-09-06 11:00 NAMC/ 033/ 07/ 2019
The Provision of Travel Management Services for a period of Three years for National Agricultural Marketing Council 2019-09-06 11:00 NAMC/ F01/ 2019
The merSETA would like to invite potential service providers in the insurance industry to provide insurance brokering and claim services for permanently employed staff members 2019-09-05 12:00 RFP005/ 2019
Appointment of a Service Provider to provide Online travel management services to Provincial Departments and Public Entities in KwaZulu-Natal for a period of three (3) years. 2019-09-17 11:00 ZNT 1221/ 2019- G
Request for additional qualified panel to be part of the KwaZulu-Natal Film Commission production crew for a period of 3 years. 2019-09-09 11:00 KZNFC- T08/ 19/ 20
Provision of a turnkey service provider to write, translate, edit, design, illustrate, produce and distribute two Gautrain children’s books 2019-09-06 11:00 GMA/ 006/ 19
Provision of Upgrade and Integration of existing GMA Office Security Systems: CCTV & Biometric Access Control 2019-09-06 11:00 GMA/ 007/ 19
Terms of Reference for the Implementation of Skills Development Programmes For Government Officials and Teachers in the Northern Cape, Limpopo, Kwa-Zulu Natal, Mpumalanga, Free State, Gauteng, Eastern Cape And North West on Behalf of the Provincial Departments of Education 2019-09-09 11:00 SCMU: 08 - 2019/ 20
Delivery of pre-screening services to the dti for recruitment purposes for a period of 24 months 2019-09-06 11:00 dti 07/ 19- 20
The Appointment of a Service Provider to Develop a Business Plan for the Property Namely Remainder of the Farm 15 Dassenberg; Farm 16 Vriesfontein And Remaining Extent of Farm 17 In Extent of 1219.9742 Hectares, Cape Rd, Western Cape. 2019-08-23 11:00 SSC WC Q10 (2019/ 2020) DRDLR
Appointment of a Service Provider/S to Conduct Comprehensive Farm Assessments on Selected Restitution and Pro-Active Land Acquisition Strategy (Plas) Farms and Monitoring of The Stimulus Package Projects Initiated by the Department Of Rural Development and Land Reform In Nine Provinces for a period of(3) three years. 2019-09-06 11:00 5/ 2/ 2/ 1- RDLR 0031(2019/ 2020)
Appointment of a Serevice Provider(S) for Transalation and Transcribing Of Evidence In Criminal And Departmental Hearing for a period of two (2) years 2019-09-16 11:00 19/ 1/ 9/ 1/ 02 TP (19)
ZNTD 03895W: WIMS 063665: Kwazulu-Natal: Department of Education: Durban: Masimdumise Junior Primary School:Water and Sanitation: Phase 3 2019-09-20 11:00 ZNTD 03895W
ZNTD 03916W: WIMS 063661: Kwazulu-Natal: Department of Education: Durban: Ezindlovini Primary School:Water and Sanitation: Phase 3 2019-09-20 11:00 ZNTD 03916W
Appointment of a service provider for the outsourcing (provisioning) of three Specialised Research Papers for the legal fees investigation of the South African Law Reform Commission for a period of six (06) months 2019-09-06 11:00 RFB 2019 02
ZNTD 03852W: WIMS 063747: Kwazulu-Natal: Department of Education: Durban: Jonase High School:Water and Sanitation: Phase 3 2019-09-19 11:00 ZNTD 03852W
The Appointment of a Service Provider to Assist with the Development, Co-Ordination and Implementation of the Environmental Protection and Infrastructure Programmes Advocacy Strategy in the Environmental Programmes Branch of the Department of Environmental Affairs 2019-09-06 11:00 E1524
ZNTD 03875W: WIMS 063779: Kwazulu-Natal: Department of Education: Durban: Iwetane Primary School:Water and Sanitation: Phase 3 2019-09-20 11:00 ZNTD 03875W
ZNTD 03849W: WIMS 063753: Kwazulu-Natal: Department of Education: Durban: Inhlokozi High School:Water and Sanitation: Phase 3 2019-09-19 11:00 ZNTD 03849W
The Appointment of the Service Provider to Review Learners Learning Materials and Development of Facilitators Guideline for Kids in Parks Programme in South Africa for Period of Seven (7) Months 2019-09-06 11:00 Q- 126/ 19/ 20

Pages

Extension of validity period

By Werner van Rooyen

www.howtotender.co.za

31 January 2019

Those of you who are familiar with responding to tenders will know that it is common practice for procuring entities to extend the bid price validity period. We received the undermentioned queries regarding the extension of the validity period of the bid price.

... Read More

Free Keyword search

Search all tender notices for FREE!

No subscription or registration required!

You can also search by the reference of the the tender.

Advanced search

Search by Issuer, Region or Sector, individually, or using any combination of the three.