Joint Venture Mastery
Everything you need to know about forming, managing, and compliant execution of Joint Ventures for South African government tenders.
Expert Articles
Learn how the B-BBEE Commission defines fronting and how to avoid it in your unincorporated JVs.
A deep dive into the two main types of Joint Ventures and when to use each for state tenders.
How to leverage a partner's strengths to bid for larger contracts than you could alone.
Fronting practices include situations where black persons are given a title but no real authority or work. In a JV, the B-BBEE Commission looks for:
- Economic Interest: Does profit share match work share?
- Operational Involvement: Is the black partner actually doing the work?
- Decision Making: Does the black partner have voting rights?
Unincorporated (Partnership): Most common for specific projects. Liability is joint and several. No new CIPC registration needed.
Incorporated (New Company): A separate legal entity (Pty Ltd). Required for long-term partnerships. Needs its own bank account, VAT, and B-BBEE certificate.
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