How to verify a supplier in South Africa: a 7-step procurement check

Step 1: Confirm the company is registered with CIPC

Search the supplier's registration number on the CIPC (Companies and Intellectual Property Commission) database and check that the registered name and directors match the quote you received.

South African company registration numbers follow the format YYYY/NNNNNN/NN, for example 2019/123456/07. The last two digits show the entity type: 07 is a private company (Pty) Ltd and 08 is a non-profit company (NPC).

Keep the CIPC registration certificate on file. A sole proprietor has no CIPC number, so verify the owner's identity and trading name instead.

Step 2: Check tax compliance with a SARS TCS PIN

Ask the supplier for a Tax Compliance Status (TCS) PIN and verify it on SARS eFiling; the result shows whether the supplier is tax compliant on the day you check.

The PIN replaces the old paper tax clearance certificate. Record the date you verified it, because a supplier's status can change.

If the supplier charges VAT, confirm its VAT number. VAT registration becomes compulsory once taxable supplies exceed the threshold SARS sets, and the standard VAT rate is 15%.

Step 3: Validate B-BBEE status

Accept either a B-BBEE certificate from a SANAS-accredited verification agency or a commissioned sworn affidavit for qualifying small businesses, and check the expiry date.

• Exempted Micro Enterprises (EMEs), with annual turnover of R10 million or less, may use a sworn affidavit.
• Qualifying Small Enterprises (QSEs), with turnover between R10 million and R50 million, may use an affidavit only if they are at least 51% black owned; otherwise they need a verification certificate.
• Larger suppliers need a certificate from a SANAS-accredited agency.
• Certificates and affidavits are valid for 12 months.

Step 4: Confirm the bank account

Pay only into an account confirmed by a recent bank confirmation letter in the supplier's registered name, and confirm any change of banking details by phone to a number already on file.

Banking detail fraud usually arrives as an email asking you to update payment details. Never use contact details from that email to confirm the change.

Step 5: Check sector licences and insurance

Ask for the licences your purchase legally requires, and public liability insurance for any work done on your premises.

• Food and catering: a Certificate of Acceptability for the food premises.
• Passenger transport: an operating licence for the route or service.
• Construction: CIDB grading for public-sector work of the relevant value.

Step 6: Cover personal information under POPIA

If the supplier will process personal information for you, sign a written operator agreement as required by section 21 of the Protection of Personal Information Act (POPIA).

Step 7: Record declarations and references

Get a signed declaration of interest from everyone involved in the award and speak to at least two of the supplier's existing clients.

Public entities must also confirm the supplier's registration on National Treasury's Central Supplier Database (CSD).

How BizKonnector helps

BizKonnector shows a verified badge on business profiles that have passed the platform's checks, so you can shortlist from verified suppliers before running your own checks.

Use the verified badge to shortlist, then complete this checklist for the suppliers you plan to appoint. Platform verification supports, but does not replace, your own due diligence.

Find suppliers in the directory

• Business Support & Administrative Services suppliers
• Professional, Scientific & Technical Services suppliers
• Construction & Built Environment suppliers

Frequently asked questions