BENEFITS OF HAVING YOUR BUSINESS REGISTERED
- UNIQUE IDENTITY
No one can register a business with that same name
- LEGAL LIABILITY PROTECTION
If you incorporate, you will not be held personally responsible for certain accidents and other liabilities. Thus, you may find it easier to obtain business insurance, or attract investors, since they will know you are not personally responsible for the company’s well-being.
It’s important for continuity sake, even if you die or become ill.
A registered business is an entity in its own right; thus, another can assume ownership or control or your business can be sold.
Neither are possible without registration
- ESTABLISHING BUSINESS BANK ACCOUNTS
You need to provide proof that your business is properly and duly registered with the concerned bodies to open a business bank account.
A business bank account is an important asset to a small business because you can separate your personal activities from your business activities.
It is also more professional to give your clients a business bank accountas as a mode for payment instead of your own full name
- GETTING LOANS
It’s easier to get bank credit and investment from investors
When you apply for small business loans, you’re going to have to prove that you’re actually a business.
Lenders and investors will ask to see your business registration along with other application requirements before approving you for a loan.
If you apply for a credit card as a business, creditors may also ask to see your registration paperwork.
- REPUTATION WITH CUSTOMERS
Customers and clients, especially people you’ve never worked with before, need assurance that you are a legitimate business.
A potential client may suspect your business of being a “fly-by-night” operation if your company isn’t properly registered.
- SUPPLIER ARRANGEMENTS
A registered business also makes you eligible to receive supplier discounts that you wouldn’t normally receive as an unregistered operation.
Suppliers commonly reserve wholesale rates for business owners who can show official paperwork from registration authorities.
Also, if you plan to try to get government contracts for your company, a business registration is one of the first requirements.
- HIRING EMPLOYEES
A business registration allows you to hire full-time employees and pay them in accordance to the laws governing salaries and wages.
When you register your business you’ll receive a certificate with a unique registration number that allows you to deduct and remit the statutory deductions namely PAYE, NHIF ,NSSF on the employee’s behalf. So if you plan to hire on employees to your business, it’s best to take care of registering your business with the state before you even start the search for workers