Issue Date: 
Thursday, January 31, 2019

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 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 general business 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 in various forms of 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.

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.
King Williams Town: Zwelitsha SAPS complex: Repairs & maintenance of electrical, civil, mechanical & structural elements to the complex. 2019-06-19 11:00 PE07/ 2019
Thabamoopo Magistrate Office: Repairs and renovations 2019-06-18 11:00 PLK19/ 04
Pretoria: Silverton SAPS: Yankee Base: Phase II: Replacement of 20 Containers and Construction of Roof and Stairs 2019-06-25 11:00 Pt19/ 004
Supply, deliver, install and commissioning of laundry equipment: Benedicitine Hospital 2019-06-24 11:00 ZNB 9654/ 2018- H
Preventative and corrective maintenance contract of steam tube bundles calorifiers: 3 year contract: various institutions 2019-06-25 11:00 ZNB 5118/ 2019- H
Refurbishment of Tennant Road Kenilworth. CIDB Grading GB Level 4. 2019-07-31 11:00 SPSC- B- 007- 2019
Refurbishment of Porterville Crescent, Monte Vista. CIDB Grading GB Level 3. 2019-07-30 11:00 SPSC- B- 006- 2019
Repair of the Burned Building at Northern Military Headquarters. 2019-06-27 11:00 CPSC- B- G- 266- 2018
NDPW: Repairs, Maintenance, Service and Replacement of Refrigeration to various areas within the Johannesburg Regional Office’s jurisdiction for 24 months period. 2019-06-18 11:00 JHB.19/ 15
RFP 0014/2019: Provision of integrated pest management program for all SARS offices, countrywide 2019-06-25 11:00 RFP0014/ 2019
Request for provision of exhibition management services for Govtech 2019 2019-06-13 11:00 RFB 1945/ 2019
Bloemfontein: South African Social Security Agency (SASSA): Mangaung Metro District Local Office: New office accommodation: and parking facilities: 1287.73m² and 40 parking bays 2019-06-18 11:00 BL19- 008
Bethlehem Department of Rural Development and Land Reform (DRD & LR): Thabo Mofutsanenyane District: Alternative office accommodation and parking facilities: 1994.17m² and 25 parking bays for 5 years 2019-06-18 11:00 BL19- 007
Welkom Department of Rural Development and Land Reform (DRD & LR): Thabo Mofutsanyane District: Alternative office accommodation and parking facilities: 2019-06-11 11:00 BL19/ 004
The iSimangaliso Wetland Park Authority invites suitable, qualified and competent Suppliers for the supply and delivery of Uniforms to iSimangaliso Wetland Park Authority 2019-06-07 16:00 RFP NUMBER: 02/ MAY/ 2019
Supply of Corporate Gifts, Clothing & Branding - This is an all inclusive National tender that will be urtilised by all our 64 members across South Africa on an as and when required. 2019-06-13 12:00 PUR 3600/ 2
Three year contract for the Disposal of Aluminium Lithographic Plates from Naval Publication Unit, Simon’s Town as per Statement of Work. 2019-06-26 11:00 SPSC- B- 004- 2019
Request For Proposals for the Appointment of a Professional Service Provider to Provide Facilities Management for the Playhouse Company for a preiod of 3 years 2019-06-24 11:00 PHC 59/ 2019
Appointment of a service provider to print barcoded Quarterly Labour Force Survey (QLFS) questionnaires for the third quarter, July-September 2019 and Survey of Activities of Young People (SAYP) questionnaires for the third quarter, July-September 2019 for Statistics South Africa 2019-06-07 11:00 Stats SA 001/ 19
Design and construction of world-class international exhibitions stands for South African Tourism 2019-06-14 12:00 SAT 142/ 19

Pages

Tender Knowledge

By Werner van Rooyen

www.howtotender.co.za

31 January 2019

Sometimes I am surprised at how little business people in South Africa know about Tenders and the Tender Process. Simple things like terminology and general tender information are difficult for people to comprehend not to mention the Standard Bidding Documents and Tender Pricing.

Unbelievably there are still Entrepreneurs that thinks to respond to tenders are an actual business? You will find that these Entrepreneurs would... Read More

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