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.
Discretionary Grant Advert 2nd Funding Window 2019/2020 2019-06-18 11:00 RFQ/ SASSETA/ 201920120
Cape Town: parliamentary precinct: official office accommodation: provide integrated facilities management services.(2019-2024) appointment of consultants: quantity serverying, electrical & mechanical engineers, civil & structural engineers, health and safety agent. 2019-06-14 11:00 CPTC 004/ 19
Appointment of Board Secretariat Services until 31 March 2020 2019-06-14 11:00 RFP/ SASSETA/ 201920113
Provisioning of Productivity Study/ Assessment and other related services to the RTMC 2019-06-18 11:00 RTMC BID 03/ 2019/ 20
Provision of Security services to the RTMC Midrand offices 2019-06-17 11:00 RTMC BID 01/ 2019/ 20
Cape Town: Provision of integrated facilities management services for parliamentary residential accommodation for a five year period (2019-2024): Appointment of consultants: quantity surveying, electrical & mechanical engineers, civil & structural engineers, health & safety agent. 2019-06-14 11:00 CPTC003/ 19
Appointment of a panel of service providers to provide fraud risk management services to the NYDA for a period of three (3) years. 2019-06-19 11:00 NYDA2019/ 01/ IA
Appointment of a Panel of Service Providers for the National Treasury to Source the Services of Editors for Publications for a period of three Years 2019-06-14 11:00 NT005- 2019
24 months term contract for transportation of members of parliament and sessional officials in the three parliamentary villages. 2019-06-14 11:00 CPTSC 01/ 19
Appointment of a Service Provider to Implement an On-Going Solution for The Management of Emolument Attachment Orders Granted Against Public Servants and a Capacity Building Programme for a Period of 24 Months 2019-06-14 11:00 NT004- 2019
Appointment of a Decor Service Provider for The World Economic Forum on Africa Mokete 2019 to Be Hosted at ICC In Cape Town. 2019-06-14 11:00 NT003- 2019
Repair and maintenance of Generators at Limpopo High Court for 24 months 2019-06-18 11:00 PLK19/ 07
Appointment of a service provider for rendering of co-sourced internal audit services for the National Lotteries Commission for a period of three (3) years 2019-06-26 11:00 NLC/ 2019- 10
Repair and maintenance of HVAC System at Limpopo High Court for 24 months 2019-06-18 11:00 PLK19/ 06
Appointment of Service provider for Events Management (Golden Shield Heritage Awards) 2019-06-26 11:00 NHC/ 01/ 2019/ 20
Repair and maintenance of lifts at Limpopo High Court for 24 months 2019-06-18 11:00 PLK19/ 05
Bloemfontein Sandf: Tempe 1 Sa Tank Regiment: Upgrading of Facility/ Infrastructure (Kitchen) and Replacement of Kitchen Equipment: (Architectural Services) 2019-06-18 11:00 BL19- 009
Bloemfontein Sandf: De Brug Mobilisation Centre: Upgrading of Facility/ Infrastructure (Kitchen) and Replacement of Kitchen Equipment: (Architectural Services) 2019-06-18 11:00 BL19- 010
Postmasburg Magistrate Court: Provisioning of cleaning services for 36 months. (1208.14m²) 2019-06-14 11:00 PF17/ 2019
Olifantshoek Magistrate Court: Provisioning of cleaning services for 36 months. (531.00m²) 2019-06-14 11:00 PF18/ 2019

Pages

5 ways to find available tenders

By W van Rooyen

www.howtotender.co.za

31 January 2019

We often get asked by business owners where can they find tenders that are currently available. Although we are not in the business of finding available tenders, our Tender Manual does have a chapter that deals with finding available tenders.

Due to the high demand for this I have decided to advise you on five different ways to find available tenders.

1. News Papers

Most of the... 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.