So often people ask the question ‘Do i really need to register my business?’ . While at face value it seems registering a company is not a necessity, years of research has proven that it is indeed important. In fact, your success in business may actually depend on it. While registering a business with the CAC in Nigeria isn’t necessarily required to complete business transactions, it is a smart choice for a new entrepreneur for a variety of reasons. Read on and we will attempt to highlight some of the benefits that registration of a business will afford founders/promoters.
Here are the few reasons why you should register your business:
- To be more professional – First impressions are important they say. This is even more true in business. Would you prefer to buy an expensive smartphone that has been created by an individual or by a company? That’s the power of registering a company. It establishes you as a professional in your field and secure customers assurance. You prove to the world that you are legitimate and are not after a quick buck. It shows your customers that you are serious and will not simply disappear tomorrow.
- Establishing Business Bank Accounts – Before you can open a bank account for your business here in Nigeria, your business must first be registered. Registering your business gives you the privilege to have a bank account in your business name, instead of giving your personal bank account to customers which is very unprofessional.
- To protect and secure your business name – Registering your business name protects it from being used by other businesses. When you register a company, the name that you choose is reserved to you only. You may not have plans to start operating right away but registering that name that you have always wanted ensures that its available to you when you are finally ready to launch your dream business. Once your company name has been incorporated and registered, you can further restrict its usage by registering it as a trade name or trademark. This ensures that no-one else can legally use it.
- Getting Loans – When you register your business, you’ll look serious especially when seeking for a loan from an investor or the bank. Presenting your business registration certificate is prove that you’re a certified business and not an illegitimate venture.
- To separate personal and business finances – Most small business owners discover painfully that mixing business and personal finances is a recipe for disaster. The majority of small businesses that fail fall into this trap. If you keep business finances in your pocket you run into the temptation of ‘helping out Uncle Tayo’ when he asks for financial help. And when month-end comes you discover that you don’t have enough to pay for business rentals or suppliers. Having your business incorporated helps you separate these two so that you don’t run into problems tomorrow.
- Enhance Brand Image – Your brand is not really a brand if it has not been registered as a business. Big companies like Google, Dangote, Apple etc are registered businesses.
- Legal Liability protection – When you register your business, it becomes a separate entity which means, you can’t be sued as a person. If there’s any defaults that arises in the cause of business operations, only the business can be sued. For example, if you had taken a loan from the bank in the name of the business, the bank will not cease any of your property because you’re not the business. They can only cease the business’s assets.
- Business Trips – If you register your business, it will makes going on business trips easier. As a business, acquiring visa to other countries will become easy cause every nook and cranny of the world are looking for potential investors to come in and help the economy.
There are countless benefits to derive from registering your business. It can’t be overemphasize.