It is true that anyone can start a business, particularly a small business with or without experience. What is usually required is to provide a product or service to the public for profit. This shows clearly that the registration status of a business is not a requirement for operating a small business or to complete a business transaction, but this short piece will show why it is a must for every entrepreneur.
These are some of the reasons why your business should be registered:
- Business Bank Accounts:
You cannot open a business bank account if you have not registered the business. You need to provide proof that your business is properly registered with the Corporate Affairs Commission (CAC) to open and operate a business bank account. A business bank account automatically separates money generated from your business from your own personal money. It is also more professional and reputable to furnish clients with your business account than your own personal accounts for financial transactions.
- Accessing Financial Facilities from Financial Institutions:
When you apply for loan facilities from banks and other loan advancing institutions, you are required to actually prove that your business exist in law, i.e. that your business is registered and a going concern.
- Business Reputation:
Registration of your business will obviously have a good impact on the reputation and image of your small business. Prospective Customers and clients alike will likely be more comfortable dealing with a registered business than an unregistered one.
- Business Opportunities:
If you ever want to get any government contracts for your business or plan on dealing with big organizations, then you should know that no government or business will deal with an unregistered business. Because more often than not, you will be required to submit paper works, including tax returns.
- It protects you from personal liability:
It has to be said that the only type of business that offers this type of protection is a business registered as a limited liability company.
- For Continuity:
If your intention is to build a brand that will outlive you as the owner, then you should get your business registered especially as a limited liability company.