Why Should I register my business?

Over 1M Answers AvailableCategory: BusinessWhy Should I register my business?
Bellajay asked 1 year ago

Please what are the advantages or benefits of getting a business registered? I noticed that the process of doing so is somehow complicated and a bit costly, will I face government penalties if I don’t register my business?

1 Answers
Bellajay answered 1 year ago

One great advantage of having your company registered with the local, state or federal government is to ensure your company name is not registered by someone else. You should always have it in mind that if your company name is “Utibe Etim Ltd” and someone else has already registered “Etibe Etim”, you can’t register “Utibe Etim” because the name is similar to “Etibe Etim”. So always strive to register your company name before someone else snaps it from you.
Certificate of Incorporation
You will be issued certificate of incorporation by the appropriate government agency. In Nigeria the Federal Government of Nigeria issues through Corporate Affairs Commission (CAC), government agency empowered to register companies and issue certificates.
Reputation With Customers
Building reputation especially from customers and clients you’ve never done business before is very difficult. Registering your business gives your potential customers confidence that they are dealing with a reputable organization. If your business is online based and you have the option of customers paying to your company account before you can ship the goods or services, having a registered business together with a corporate account give more credibility and trust.
Account Opening in Your Company Name
Another great benefit of registering your company name is to use it to open corporate account in your company name. Having corporate account give you more credibility and trust from your customers, bank, suppliers and other business partners.
Legal Liability Protection
When you register your business as Limited Liability Company, you are a different entity from your company. You also get legal liability protection. If you incorporate, you will not be held personally responsible for certain accidents and other liabilities.
If you obtained loan and you defaulted in payment, your bank will not seize your property except the company asset because you are protected from such incidence.
Getting Loans
When your company is registered, accessing loan becomes very easy compare to personal loan application. With your documents, you are going to have to prove that you’re actually a business. This gives credibility and trust and also ensures confidence and your investors or lenders will see that they are dealing with a company and will be willing to do lend you money if other terms and conditions are made.
Continuity
I love this part so much. Before starting by business, I asked myself this question, “What kind of company do I want to build? Is it a company that continues when I’m dead or company that dies with me?” The answer is obvious, company that continues even when I am not around. So if you register your business, one of the benefits is that even if you’re dead or become incapacitated, your business continues especially when you have the right structure in place.
Hiring Employees
A registered business can employ full-time employees and pay them salaries and other benefits. You have the opportunity to seek for intern especially from National Youth Service Commission or Sure-p that will not cost you a lot in terms of paying salaries and incentives or even cost you nothing in the case of Sure-p.
Business Trip to Other Country
Another great benefit of business registration is that you can easily obtain visa and travel to any country for business purposes. Every country always welcomes foreign investors who are interested in doing business in their country because such good investments will add value to their economy.
There are so many benefits you will get from your business registration. If you haven’t registered your business, please start making the necessary steps to register your business. Business registration is not that difficult