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.
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

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... 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.