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.
Placement and maintenance of Luminex immune based system of tissue typing and antibody screen for a period of five(5) years at Tswane hospital 2019-04-05 11:00 RFB 167/ 18/ 19
Procure a pathogen identification system for public health laboratory, infection services laboratory for a period of five (5) years at Charlotte Maxeke Hospital 2019-04-04 11:00 RFB 160/ 18/ 19
Bid for the supply and delivery of theatre consumables to all hospitals/institutions under the control of the Department of Health, Western Cape Government for a three year period 2019-04-12 11:00 WCGHCC041/ 2018
Supply and delivery of one optical fibre reflectometer to characterise optical fibre networks and photonic subsystems used for radio astronomy applications including all test peripherals required by the reflectometer, calibration, and routine servicing support. The contract is for a period of five years 2019-04-05 11:00 NRF SARAO SKRF 001 2019
(Re-advertisement) Supply, delivery and commissioning of electrical equipment and panels for NQF level 3, 4 & trade test 2019-04-12 11:00 LEPTVETCOL2019/ 001
Supply, delivery, installation, commissioning and training of a variable energy 70MEV H- cyclotron and associated beam lines for isotope production and the provision of spare parts at iThemba Labs, Cape Town, South Africa. 2019-05-10 11:00 NRF/ iThemba LABS/ 2019 - 20: 01
The South African National Roads Agency SOC Limited (SANRAL) invites tenders for the appointment of a Service Provider for the provision of Consulting Engineering Services for the Special Maintenance of Structures and Drainage on an ad-hoc basis on the National Route network in the Western and Northern Cape. 2019-04-12 14:00 X005- 021- 2018/ 1F
Panel of service providers to provide an electronic / web based or application solution access to credit and background information of individuals, companies , fixed properties etc. and ability to conduct searches on such information to the NPA for a period of three (3) years 2019-04-15 11:00 NPA 14- 18/ 19
Provisioning of Catering services to RTMC Training College 2019-04-09 11:00 RTMC BID 24/ 2018/ 19
Provision of Services of an Occupational Medical Practitioner (OMP) and Occupational Health Nurse Practitioner (OHNP) for Parliament of RSA 2019-03-29 12:00 B1/ 2019
Phuthaditjhaba Department of Pension Administration Agency: Alternative Office Accommodation and Parking Facilities 329.32m² And 23 Parking Bays(3 Years) 2019-04-09 11:00 BL18/ 098
Supply, Delivery, Erection, Maitainance and Removal of Movable Infrastructure for the 2019 Presidential Inauguration 2019-04-09 11:00 HP18/ 021GS
Rendering of a Service in Respect of the Supply, Erection and Removal Fencing and Related Requirements for the Department Of Public Works 2019-04-09 11:00 HP18/ 018GS
Hire of suitable furnished residential accommodation:6x1 bedroomed flat/apartments plus 6 secure on site-parking bays and for medical interns 4x1 bedroomed flat/apartments plus 4 secure on site parking bays at Edumbe CHC, Edumbe: Department of Health . Contract Period: 12 months and 24 months for medical interns 2019-04-15 11:00 ZNT 7859 W
Hire of suitable furnished residential accommodation:10x1 bedroomed flat/apartments plus 10 secure on site-parking bays and for CSO’’s for 12 months and 10x1 bedroomed flat/apartments plus 10 secure onsite parking bays and for medical interns for 24 months at Ngwelezane Hospital, Ngwelezane: Department of Health 2019-04-15 11:00 ZNT 7861 W
VMWare Software 2019-04-05 12:30 10401236
Checkpoint 2019-04-05 11:00 10401237
Hire of suitable furnished residential accommodation:15x1 bedroomed flat/apartments plus 15 secure on site-parking bays at Eshowe Hospital, Eshowe: Department of Health 2019-04-15 11:00 ZNT 7860 W
Saldanha: Military Base: Construction of new sick bay facility 2019-04-17 11:00 CPT1019/ 18
Presidential Inauguration: Provision of Stage, Sound, Big Screen and Related Infrastructure at Loftus Versfeld Stadium Functionality Criteria 2019-04-09 11:00 HP18/ 016GS

Pages

Must my business be registered in order to tender?

By Werner van Rooyen

www.howtotender.co.za

31 January 2019

Once, a very anxious business owner phoned me and asked if I can supply him with a CK number. I was amused by this and first asked why he asked me for such a number and secondly for what did he need a CK number for? He said that because of my Tender Manual that he bought, he thought that maybe I can help him with a CK number. Also, at the briefing session of the tender that he was responding to, the person in... 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.