Issue Date: 
Thursday, January 31, 2019

Ease of opening a business

By Werner van Rooyen

www.howtotender.co.za

31 January 2019

South Africa is currently rated 88nd when it comes to the ease of doing business according to survey that is done yearly by The World Bank. This is all good and well if you are an overseas investor with a lot of money and looking for new places to invest in. However, if you are a South African with little or no money, doing and / or starting a business in South Africa can be a daunting task!

To begin with, the statistics are against you when starting a business. It is said that 80%-90% of all new start-up businesses fail within the first two years. Of the remaining 10%-20% another 80% bites in the dust within the next three years. So of the original businesses that start out only a handful survive the first five years. These are scary statistics!

You think the large family concern that you are working for is safe from failing, wrong again, most family owned businesses last not much longer than twenty five years. Strangely enough, when it comes to family owned businesses the second generation either loses it all or they make a huge success, even more so than the first generation. The problem is that the second generation usually makes a mess of things and the reasons are fairly obvious. The reasons range from lack of interest to spoiled brats that do not know the meaning of hard work. But mainly because siblings despise the business because their parents worked so hard to make a success that they neglected the children and now the children don’t want anything to do with the business.

But let us get back to the ease of opening a business in South Africa.

You will have to have a fixed address from which you are going to operate your business. Keep this in mind because South African Legislation dictates that you must supply a legitimate address when registering for a multitude of things.

If you are going to open a legitimate business (and I really hope this is the case) then the second thing you will need is a bank account. This is a fairly easy process and I recommend that you start out with a savings account with little or no bank charges. This is to say if you start out with a small one man business. Obviously you must consider the needs of the business when opening a bank account but try and keep the initial costs to a bare minimum. You will need proof of Identity as well as proof of your address to open a bank account. If you are in a partnership you will also have to have a partnership agreement. In the case of a company you will have to have the company registration documents on hand to give to the bank.

Once you have a bank account you can start receiving money into your business. You will find that once you start selling your product or service, your customers are going to ask you for a Tax Invoice. This is where the fun starts. If you are registered for Value Added Tax or VAT in short, there would be no problem to supply your customers with a tax invoice, but if you are not registered for VAT this is where it becomes tricky. The South African public and business folk are so brain washed on a Tax Invoice that hardly anyone knows what a Tax Invoice actually is. All they know is that their Auditors demand a Tax Invoice and if they cannot supply a Tax Invoice to the Auditors they are in trouble. A Tax Invoice can only be issued by a business or vendor that is registered for VAT. There are several instances where a business or vendor can register for VAT, but the number one requirement is if the turnover of the business exceeds R1 million per year.

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.
The manufacture, supply, delivery to site, installation and commissioning of one passenger lift, guide rails, operating system and maintenance contract for Olifants River Resources Development Project at De Hoop Dam. 2019-06-06 11:00 DWS04- 0419 WTE
Appointment a pool of suitably qualified service providers to provide Interpreting services in QAA-Schools Sub-unit for a period of three years (36 months) 2019-05-17 12:00 RFQ- 0002
Supply and delivery of stainless steel grade 340 L for a period of 24 months to construction central 2019-06-06 11:00 DWS05- 0419 WTE
Procurement for Opentext Software License and Maintenance and Support on Behalf of the Western Cape Government Department of the Premier for a three (3) year period 2019-05-09 11:00 RFB1872/ 2018
Port Elizabeth: Alternative accommodation for Ibhayi Local Office: SASSA. 2019-05-14 11:00 LSPE05/ 2019
Appointment of a mechanical service provider to provide maintenance and general mechanical work at SITA Gauteng and other sites. 2019-05-15 11:00 RFB 1921/ 2019
Calvinia Department of Home Affairs: Alternative office accommodation: 415.88m² and 5 parking bays for a period of 5 years. 2019-05-22 11:00 LS07/ 2019
Calvinia Statistics South Africa: Alternative office accommodation: 320.45m² and 10 parking bays for a period of 5 years. 2019-05-22 11:00 LS03/ 2019
Appointment of a Group Life Insurer 2019-05-22 11:00 RFP 10/ 2019
Procurement of 2 PSIRA grade A armed close protection and 4 grade C static security guards at Mafikeng North West Public Works offices for the North West administrator for the period of 15 months 2019-05-14 11:00 HP19/ 001GS
Appointment of a Travel Management Company to Provide Travel Management Services and accomodation to the South African Police Service:Domestic and International for a period of three (03) years 2019-05-22 11:00 19/ 1/ 9/ 1/ 53 TP (18)
KZN: Department of Education: eThekwini Region: Verulam: Cottonland Primary School: Repairs and Renovations 2019-05-22 11:00 ZNTD 04634W
KZN: DOPW: eThekwini Regional Office: Mayville Complex: Rendering of Security Services within the complex, vacant land between Gazzela and Piedmont Road for a Period of Thirty-Six (36) Months (3 years). 2019-05-22 11:00 ZNTD 04762W
Appointment of a Service Provider for the Leasing of Office Space [Pretoria] for a Period of Five [5] Years for Groenkloof National Park 2019-05-17 11:00 GNP- 057- 18
Pretoria: Leasing of Office Accommodation of 30 223 square meters and 1 584 parking bays usage by the Department Home Affairs for period of 5 years in Pretoria CBD 2019-05-14 11:00 PT19- 002
Appointment of a professional technical expert to advise the Energy Regulator on the prudency of asset acquisition in Transnet SOC limited’s new Multi Products Pipeline project for a period of seven (7) months 2019-05-09 11:00 NERSA/ 1920/ PPT/ PAA/ BID001
Pretoria: Leasing of Office Accommodation of 18 873.86 square meters and 454 parking bays usage by the Department of Correctional Services Head Quarters for a period of 5 years in Pretoria CBD and the outskirts 2019-05-14 11:00 PT19/ 001
Appointment of a service provider to undertake the ex-post regulatory impact assessment of all Energy Regulator decisions and stakeholder perception/ satisfaction survey 2019-05-09 11:00 NERSA/ 1920/ RAR/ RIA/ BID002
ICT Research Support Membership for a period of 36 months 2019-05-24 12:00 DPME 05- 2019/ 20
Appointment of a Service Provider to Render Organisational Work-Study Services for a period of six (6) months 2019-05-23 11:00 NCC/ 04/ 2018/ 19

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The 8 steps in the Tender Adjudication process

By W van Rooyen

www.howtotender.co.za

31 January 2019

It is important to understand the Adjudication process when one responds to a Tender or Request for Proposal. If you have these 8 steps under control when responding to tenders, changes are good that you will proceed to the next round.

Here are 8 steps in the adjudication process that Organs of State will most often follow in determining which bidder will win the tender:

  1. Opening... Read More
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