Issue Date: 
Monday, September 1, 2014

Must my business be registered in order to tender?

By Werner van Rooyen

www.how2tender.com

1 September 2014

Once, a very anxious business owner phoned me and asked if I could supply him with a CK number. I was amused by this and first asked why he asked me for such a number and secondly what did he need a CK number for? He said that because he had bought my Tender Manual he thought that may be I can help him with a CK number. Also, at the briefing session of the tender which he was responding to, the person in charge of the tender said that if the responders to this tender didn`t have a CK number their tender responses would be disqualified!

Obviously I was flattered by the compliment that this person thought I could help him with everything regarding his tender response but I was really confused why all responders to this specific tender needed a CK number. Now for those of you that do not know what a CK number is, it is the general term that is given for a Close Corporation registration number; all Close Corporation numbers started with the prefix CK followed by some numbers. The ridiculousness of this statement - that all responders must provide a CK number - just proved how little this official new about business in general in South Africa.

This brings us to the question - must I have a registered business to respond to tenders in South Africa. The short answer is simply no; you don`t need a registered business to respond to a tender.

In South Africa you can do business via various entities. The most popular of course is a private company or (Pty) Ltd as it is commonly known. In 1984 the South African Government of the time thought it good to give an alternative to the private company in the form of a close corporation. The idea behind the close corporation was to make it easier for entrepreneurs to have access to a legal business entity. The close corporation as a legal entity was very popular in the 1980`s and 1990`s. It became less popular as business owners realized that it didn`t provide sufficient security against them personally and eventually close corporation registrations were stopped in 2011. Close corporations that are still in existence can still operate but no new ones are allowed to register.

The fact of the matter is that if you respond to public sector tenders you are allowed to respond in your own name. The standard bidding documents makes provision for this. Just remember that you will still need all the compulsory documents to respond to the tender albeit in your own name.

Then there is the question of experience; the Evaluation Committee members may think that you lack experience if you do not respond in the name of a legal entity. And as we all know, experience counts when you respond to a tender.

Until next time, keep on responding to those tenders and if you need an edge visit our website atwww.how2tender.com for more information or buy our Tender Manual.

Title Closing Date Tender No.
The Betterment, Regravelling And Drainage On P224 From Km 0.000 To Km 4.386 In The Mandeni Local Municipality (Kz291) For Grade 3CE Vukuzakhe Contractors. 2018-11-22 11:00 ZNT 373T/ 3/ C2910/ 008/ S/ 1/ 2018- 2019
The Construction of Sidewalks on D894 From Km 1.00 To Km 1.30 in the Maphumulo Local Municipality (KZ294) for Grade 2CE Vukuzakhe Contractors. 2018-11-22 11:00 ZNT 373T/ 2/ C2940/ 187/ S/ 1/ 2018- 2019
The aim of the project is to undertake a province-wide physical verification of all spaza shops and produce quality reliable data to assist the GEP and Gauteng Department of Economic Development (GDED to make informed decisions pertaining to legal and illegal spaza shops. 2018-11-13 11:00 GEP003/ SPAZASHOPPROJECT/ 18
The Betterment, Regravelling And Drainage On D1632 From Km 4.50 To Km 8.50 In The Maphumulo Local Municipality (KZ294) For Grade 3CE Vukuzakhe Contractors 2018-11-22 11:00 ZNT 373T/ 3/ C2940/ 009/ S/ 1/ 2018- 2019
The Betterment, Regravelling And Drainage On D1527 From Km 4.00 To Km 8.00 In The Maphumulo Local Municipality (Kz294) For Grade 3CE Vukuzakhe Contractors 2018-11-22 11:00 ZNT373T/ 3/ C2940/ 002/ S/ 1/ 2018- 2019
The Betterment, Regravelling and Drainage On P719 From Km 4.00 To Km 8.00 in the Mandeni Local Municipality (Kz291) For GRADE 3CE Vukuzakhe Contractors. 2018-11-22 11:00 ZNT 373T/ 3/ C2910/ 006/ S/ 1/ 2018- 2019
Development test of visual perception -third edition 2018-10-30 11:00 PSH 492/ 1819
The Betterment, Regravelling and Drainage On L2450 From Km 0.00 To Km 6.00 in the Mandeni Local Municipality (Kz291) For Grade 3CE Vukuzakhe Contractors 2018-11-22 11:00 ZNT373T/ 3/ C2910/ 003/ S/ 1/ 2018- 2019
The Betterment, Regravelling and Drainage On D1632 From Km 0.00 To Km 4.50 in the Maphumulo Local Municipality (KZ294) For Grade 3CE Vukuzakhe Contractors 2018-11-22 11:00 ZNT 373T/ 3/ C2940/ 005/ S/ 1/ 2018- 2019
Provision of accredited training, establish SMME’s & Cooperatives, provide job readiness and training. 2018-11-13 11:00 GEP005/ YOUTHYMPO18
Aspirating tube. Size: 8ml. 2018-10-30 11:00 PSH 961/ 1819
Appointment of a service provider at the Independent Communications Authority of South Africa for restoration of Pinmill Farm Premises on an 80/20 PPPFA 2000, Preferential Procurement Regulation: 2017 2018-10-26 11:00 ICASA 20/ 2018
The Financial Intelligence Centre request for information for a contract management tool. 2018-11-10 11:00 National: Financial Intelligence Centre: Supply Chain Management
The Financial Intelligence Centre request proposals from service providers for procurement of an Automated Web Search Application for use by the Financial Intelligence Centre. 2018-11-09 11:00 FIC/ RFB/ WEBSEARCH/ 1/ 0004/ 2018/ 19
Invitation to an Open Tender for the Appointment of Panel of Contractors to Assist AIDC With Various Infrastructure And Maintenance Projects for a period of 3 years 2018-11-09 11:00 AIDC T05/ 2018
Appointment of an Organisational Development (OD) consultant to conduct an organisational structure review for Dube Tradeport Corporation. 2018-11-12 11:00 DTP/ RFP/ 24/ COR/ 09/ 2018
Appointment of a service provider to conduct a feasibility study, develop business plan and financial model for the maintenance, repair and overhaul (MRO) facility at DTPC. 2018-11-12 11:00 DTP/ RFP/ 30/ IFR/ 10/ 2018
Dishwasher soap dispenser 2018-10-30 11:00 PSH 960/ 1819
Appointment of service provider for the provision of quality control specialist services to DTPC BID Committees for a period of two (2) years. 2018-11-12 11:00 DTP/ RFP/ 28/ CEO/ 10/ 2018
The appointment of a service provider to conduct three (3) climate change risk and vulnerability assessments as well as three (3) climate change response plans over a period of seven (7) months. 2018-11-08 10:00 5/ 2/ 2/ 1- RDLR 0045(2018/ 2019)

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Advantages and disadvantages of Consortiums

Consortiums are often considered as entities to use when responding to tenders in South Africa. The question that arises is whether to use a Consortium or a Joint Venture when responding to a tender. To help you with this we have compiled a list of advantages and disadvantages for both Consortiums as well as Joint Ventures. In this article we list the advantages and disadvantages of Consortiums. Look out for the same article on Joint Ventures.

Consortiums Advantages:

  • Easy to establish as there are no formal procedures... Read More
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