Construction Company Registration

What is a Letter of Good Standing and how can I get one?

A Letter of Good Standing is the proof that you have registered for COIDA and have paid your contribution to the Compensation Fund after obtaining your assessment fee.

Use our Free COIDA Return of Earnings Calculator today to calculate your assessment fee.

Should an employee be injured whilst on duty, an employer will be required to file for a Workers Compensation Assessment (WCA) whereby the employee will be paid out for any losses obtained during the period for which they were unable to carry out their day-to-day duties. Such pay-outs will include losses for any regulated overtime.

As the employer, you will need to put forward an amount yearly in anticipation should you find yourself in a position where an employee is to be compensated – this is, in essence, the amount paid to the Compensation Fund and protects the company from medical bills.

Please note this really is an oversimplification and the Commissioner of the Fund must approve any claim and determines what the compensation will be based on your employee’s incident and his or her income prior to the incident.

Do I have to register for VAT?

Although a Value Added Tax (also known as VAT) Registration is not mandatory, it may be beneficial to companies who wish to Tender in the construction sector. Should your company have an annual turnover of more than R1million, you would then be legally required to register for VAT. If not, and should you meet the requirements, you are also able to do a voluntary registration.

A voluntary VAT registration will mean more paperwork, as you would need to provide SARS with adequate information as to why the VAT number is required. Having a VAT number makes the company more susceptible to Tenders or Contracts, as your perspective clients will be able to benefit for it as well.

Where do I register for VAT?

You will need to register for VAT (you can read more about that right here: https://www.sars.gov.za/types-of-tax/value-added-tax/) at SARS, however, our SARS experts can assist you from the comfort of your home.

The easiest way to do a VAT Registration is to simply call us Toll Free on 0800 007 269 (free to dial from Cell phones and Landlines).

Do I need a B-BBEE Affidavit or a BEE Certificate?

Often confused, a BEE certificate and a BEE affidavit are not the same. A BEE affidavit would be for companies that have not exceeded 10 million in turnover over a 12-month period. Whereas a BEE certificate will be applicable to companies who have exceeded 10 million within 12 months and/or trade in the Construction or Transport sectors.

It is for this reason that many Construction tenders will require a BEE certificate. But this is also dependent on the tender requirements.

However, if you are like many South African businesses, with a turnover of less than 10 million – a BEE Affidavit will also serve its purpose. and have it signed by a Commissioner of Oath, and it will be valid for 1 year.

Where do I get a B-BBEE Affidavit or a B-BBEE Certificate?

We can assist you with a BEE Affidavit or BEE Certificate. You can also find out more about where to get an official B-BBEE from the CIPC.

Do I have to register at the CIDB (Construction Industry Development Board)?

Much like CSD, your CIDB registration is your entry point into any Construction Tender or Contract. You will not be considered for any construction tender should you not be registered and comply with the South African law (Act 38 of 2000.

CIDB ensures that the Construction standards in South Africa are the same across the board. And as such, preventing underqualified persons from carrying out unethical practice in the construction industry.

Where can I register my construction company at the CIDB?

The easiest way to do a CIDB Registration is to simply call us Toll Free on 0800 007 269 (free to dial from Cell phones and Landlines).

Here’s a link to a CIDB application form: https://www.westerncape.gov.za/Text/2005/1/formcrs_p1.pdf

Do I have to register my Construction Company at the NHBRC?

The NHBRC (National Home Builders Registration Commission) will open many doors for those who are looking to Tender and Contract within the construction sector, but it is not mandatory to be registered with the NHBRC.

The Site itself acts as a housing database whereby construction companies are listed for respective clients, contractors, or tender opportunities in South Africa. You will also be able to apply for building loans.

Where can I register for the NHBRC?

Have a look at this helpful link: NHBRC Registration

Is it good to register at the MBSA as a South African Construction Company?

To increase your chance even more at winning a Tender bid, registering for the MBSA (Membership of the Master Building Association) is always a good idea! Although this is not always a requirement, it does reflect good on the company and is often associated with accredited Construction companies.

You can find out more about the MBSA right here: https://www.masterbuilders.org.za/building-contractor/membership-benefits

The purpose of the Comprehensive business plan is to guide you in setting up and operating your business at a profit and when you need to submit a document for tenders. Your business plan is your road map to your success.