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.
Appointment of an accredited external water testing laboratory for AgriZone for a period of three years. 2018-09-14 11:00 DTP/RFP/11/AGZ/06/2018
Exterior painting at Wellington, Civic Centre 2018-08-30 10:00 BK016 (DIC0025814)
Procurement of grade 8 and 9 MST camp: Academic and role modeling 2018-09-03 12:00 CS/SCM/COO/MST/R18-19/27
The Department of Public Enterprises invites service providers to submit a proposal to assist the Department to manage and render an in-house canteen service. 2018-09-03 11:00 DPE 6/2018-2019
New vinyl floor covering at Soup Kitchen 2018-08-30 10:00 BK015 (DIC0025816)
Civil Engineering Services for the implementation of Rea Vaya Phase 1C Greenstone Bus Terminal for design review and contract administration. 2018-09-14 12:00 JDA/GT001
Supply: 6 each x vibration detection sensor iq2400s5-m12c 2018-08-27 12:00 GD11900208
Precinct Study, Noorder Perel, Paarl 2018-08-23 10:00 DIP0001964
Supply Equipment for metro farmworkers. 2018-08-22 12:00 GG11900273
Supply: Medical supplies 2018-08-22 15:00 GF11900116
Revamping of derelict a cricket wicket at New Orleans Sportsfields 2018-08-30 10:00 DSP0019548
Rewind and Repair both 45kw and 37kw flange mounted motor 2018-08-24 12:00 RFQ NO: 8/3/2- 57/2018
Completion of bus route at Tweefontein - G in Thembisile Hani Local Municipality. 2018-09-14 12:00 3387/17
Supply & replace of 2 x 36000btu split A/C at Mayors Office in Civic Centre, Paarl 2018-08-30 10:00 DIE0014378
Annual service and repairs of standby generators in the Water department at various venues 2018-08-30 10:00 DIC0025810
Holsloot Diversion works: Construction of concrete weir and associated structures. 2018-09-14 12:00 127/2018
Supply & delivery of pipes UPVC 110mm socketed (6m length class 51) 2018-08-23 10:00 S4W0003028
Supply and Installation of Stormwater Network at Region1 (Emzinoni Victor Khayane Road 2018-08-27 12:00 RFQ NO: 8/3/2- 60/2018
IFRS 17 Implementation Services. 2018-09-14 12:00 RFP 2018/13
Construction of a 6 point swing-over milking parlour. 2018-09-14 12:00 20/2018

Pages

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