How soon do you need to register a company/proprietorship before trading as such ?

[trajan]

You're saying the the government should give every commercial agreement the once over to make sure that they're suitable?

That's a no from me, dawg.

The government isn't involved at a micromanagement level. Not even at policy level in this country for most things.

And they shouldn't need to be either as the market itself should sort this out.

My surprise is that the companies awarding distributorships do not see it in their own interest to have only tenderers with technical expertise and preferably existing experience in that market. I would see these as foundation attributes for any candidate distributor. If you give one to a candidate with no prior expertise or experience in that market then they will not be able to efficiently service the equipment involved, they won't know a good sales engineer from a bad one when hiring them, they will be essentially learning from their mistakes and relying on people they cannot manage to make important decisions on the distribution business' future.

But then again, John Murphy B.E. M.I.Mech.E. can't easily raise a bank loan big enough to back himself for this type of venture. So access to capital across the society is not equal, rational or - in these cases - even sensible.

So a self-correcting market will not exist nor apply in these situations.