A Complete Guide for Entrepreneurs and SMEs

Winning government and institutional tenders in South Africa is one of the most effective ways for businesses to scale. However, before applying for any tender, companies must satisfy a range of statutory and regulatory compliance requirements. This guide outlines every step in the compliance journey and provides authoritative links to the official services needed for registration and certification.

1. Register Your Business with the CIPC (Legal Business Entity)

Purpose: Government and private sector tenders require a formally registered company.
Authority: Companies and Intellectual Property Commission (CIPC).

Steps to Register

1. Create an account on BizPortal (CIPC’s e-services platform): BizPortal — Company Registration & Services (CIPC)

2. Register a company (e.g., Pty Ltd), close corporation, or other structure.

3. Receive your Company Registration Certificate (CoR14.3) and company number.

Key Notes:

• Foreign entities doing business in South Africa must register as an “external company” with the CIPC. (CIPC)

• Once registered, you are legally recognised to trade, open a business bank account, appoint directors, and comply with tax and tender requirements.

Why It Matters

No government or major institutional tender will accept bids from unregistered businesses.

2. Tax Compliance: SARS Registration and Tax Compliance Status (TCS)

Purpose: Demonstrates that your business complies with tax obligations.
Authority: South African Revenue Service (SARS).

Steps

1. Ensure your company is registered on SARS as a taxpayer.

2. Apply for a Tax Compliance Status (TCS) Pin via eFiling at SARS’s official portal.

3. Maintain up-to-date tax returns and compliance status.

Official Registration:

• Visit the SARS eFiling system or contact SARS directly to register a business for tax.

• Tenders typically require submission of your TCS pin or a valid consolidated compliance verification via the Central Supplier Database (CSD). (eTenders)

Why It Matters

Tax compliance is a non-negotiable prerequisite for tenders — failure here leads to automatic disqualification.

3. Central Supplier Database (CSD) Registration

Purpose: The CSD is the official national supplier database used by all government departments and many state-owned entities.
Authority: National Treasury.

Requirements

To register on the CSD, you must already have:

• A valid CIPC company registration.

• A business bank account.

• SARS Tax Compliance or TCS.

• B-BBEE certificate or affidavit (where applicable). (secure.csd.gov.za)

How to Register

1. Visit the official CSD supplier portal: https://secure.csd.gov.za.

2. Create an account, provide all business details, and submit supporting documentation.

3. Upon successful registration, receive your MAAA supplier number. (Tender Portal)

Why It Matters

Registration on the CSD is mandatory for government tender applications. Bids without a valid CSD (MAAA) number will be rejected. (South African Revenue Service)

4. B-BBEE (Broad-Based Black Economic Empowerment) Certification

Purpose: Improves your score under the Preferential Procurement Policy Framework Act (PPPFA) and is critical for point scoring in tenders.
Authority: Broad-Based Black Economic Empowerment Commission, with verification agencies.

Options

1. B-BBEE Certificate – For companies with revenue above certain thresholds; requires external verification.

2. B-BBEE Sworn Affidavit – For Exempted Micro Enterprises (EMEs, turnover ≤ R10m), available free via CIPC or by affidavit stamped by a Commissioner of Oaths. (CIPC)

Official Source

• Apply online through the CIPC or consult accredited verification agencies.

Why It Matters

Tender evaluation often uses a points-based system, where B-BBEE status contributes significantly to preference points. (Trade, Industry, and Competition)

5. Additional Compliance Requirements for Specific Industries

Many industries require specialised registrations beyond the basics:

Sector

Mandatory Registration / Certification

Industry-Specific Compliance Requirements for Tendering in South Africa

In addition to standard business registration and tax compliance, certain industries in South Africa require sector-specific regulatory registration before a business may legally tender or deliver services. These registrations are often listed as mandatory pre-qualification criteria in tender documents and failure to comply may result in automatic disqualification.

Construction Sector — CIDB Registration

All contractors tendering for public sector construction projects must be registered with the Construction Industry Development Board (CIDB). CIDB grading determines the size and value of contracts a contractor may bid for.
🔗 https://www.cidb.org.za

Security & Guarding Services — PSIRA Registration

Companies offering private security services, including guarding, patrol, monitoring, or security consulting, must be registered with the Private Security Industry Regulatory Authority (PSIRA).
🔗 https://www.psira.co.za

Health & Pharmaceuticals — SAHPRA Licensing

Businesses involved in the manufacture, distribution, storage, or supply of medicines, medical devices, or health products must obtain the relevant licence from the South African Health Products Regulatory Authority (SAHPRA).
🔗 https://www.sahpra.org.za

Labour & Employee Compensation — COIDA Compliance

All employers must register with the Compensation Fund (COIDA) and maintain a valid Letter of Good Standing, which is commonly required when tendering.
🔗 https://www.gov.za/services/compensation-fund/register-compensation-fund
🔗 https://www.labour.gov.za

Important Note

Industry-specific compliance is assessed in addition to:

• CIPC company registration

• SARS tax compliance

• Central Supplier Database (CSD) registration

• B-BBEE certification or affidavit

Businesses are advised to confirm all regulatory requirements listed in each tender document prior to submission.

Municipal Supplier Lists

Provincial Supplier Databases (e.g., WCSEB)

Why It Matters:
These certifications are often listed as pre-qualifying criteria in tender documents and are essential for eligibility in those sectors.

6. Understand Public Procurement Law and Tender Regulations

Government procurement is regulated by several legislative frameworks such as:

• The Preferential Procurement Policy Framework Act (PPPFA) – governs scoring and preference points. (Trade, Industry, and Competition)

• The Public Finance Management Act (PFMA) – establishes governance of public expenditure.

• Treasury Regulations and Supply Chain Management (SCM) policies.

Key Takeaway:
Tenders that include PPPFA criteria will allocate preference points based on B-BBEE status, price, and functionality. (Trade, Industry, and Competition)

7. How to Prepare and Submit Tender Documents

Once compliance registrations are complete:

1. Download tender documents from portals like eTenders (National Treasury) and entity websites.

2. Ensure all Standard Bidding Documents (SBDs) are completed accurately.

3. Include copies of:

   • Company registration.

   • CSD MAAA number.

   • SARS TCS or Pin.

   • B-BBEE certificate/affidavit.

   • Industry-specific registrations (if required). (eTenders)

Official Links

Below are essential official links for you to access the services required:

• CIPC BizPortal (Company Registration & Services): https://www.bizportal.gov.za (BizPortal)

• SARS (Tax Compliance & Supplier Info): https://www.sars.gov.za (South African Revenue Service)

• Central Supplier Database (CSD): https://secure.csd.gov.za (secure.csd.gov.za)

• National Treasury eTenders (Tender Notices): https://www.etenders.gov.za

• CIPC B-BBEE Services: https://www.cipc.co.za/?page_id=3612 (CIPC)

• B-BBEE Commission Guidance: https://www.bbbeecommission.co.za (bbbeecommission.co.za)