The Covid-19 pandemic has ignited a spirit of entrepreneurship which has led to an increase in the number of resilient South Africans starting side hustles, either to supplement their income, or create an additional source of income.
Once your next big business idea has been identified or even tested, the next question to ask yourself is, “Should I register my side hustle?”
“While CIPC registration is not a pre-requisite for a successful side hustle, it is a great opportunity to reserve the business name you want to use and trade under,” says Lauren Deva, Pillar Head for Commercial Transactional Pillar at FNB Business.
Before registering your side hustle, it is important to decide on a suitable business structure. There are several business structures that you can choose from depending on the type of side hustle you are operating.
- 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
Registering and facilitating the process for Pty Ltd companies and for Pty Ltd registrations.
“To help our entrepreneurs with the registration process, your CIPC registration can be initiated on FNB’s website within minutes. 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,” Deva says.
“The entire registration process for your business via FNB can be completed in as little as five days, leaving you free to focus on the very important work of growing your side hustle,” Deva concludes.