Make 2022 the year you turn your side hustle into a fully fledged business

Many folks used the pandemic to start a side hustle either to offset the losses incurred during the pandemic or to take a leap they had been considering for some time now.

As we approach a third year with the state of disaster in place and the outlook for the pandemic still very much hazy, that side hustle you’ve started may be burgeoning to a point where it could become a fully fledged business.

While there are many aspects of this to consider, registration of the business should be top of mind. Registering your business with the Companies and Intellectual Property Commission (CIPC) can present tax benefits as well as several other advantages including access to financial assistance and protection from things such as copyright or trademark infringement.

However, as the CIPC itself notes, sole proprietors and informal businesses may not sufficiently benefit from the advantages registration brings.

Before you head to the CIPC’s website and start the process, you should consider what type of business you wish to register.

The options available include:

  • Pty Ltd, is a private company treated as a separate legal entity.
  • Franchise, a form of a private company, which has a business model that can be licensed to third parties.
  • Non-profit company (NPC), previously known as a section 21 company. It is set up to benefit the public.
  • Public Company has shares that are traded publicly through a stock exchange.
  • Sole Proprietor where there is no legal distinction between the owner and the business

To assist business owners FNB offers CIPC registration through its website.

“There is no additional cost from the bank. You either pay R125 (no name reservation) or R175 (name reservation). The Bank will then help to facilitate the process with CIPC for you and provide you with a business account and the tools suited to meet your business’ needs,” explains head for the commercial transactional pillar at FNB Business, Lauren Deva.

FNB says that it can complete the entire process in as little as five days.

Of course, registration is just one aspect of starting your business and we recommend coming back to Hypertext for regular news and features about starting and growing your business, no matter the size.

[Image – CC 0 Pixabay]


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