For many, there is no need to register your company with the government since it is a very small one. To them, once you pay the dues of the government agency responsible for their line of business (that is if they have a physical location), they are covered. Some of us even evade such payments thinking we have “guyed” the government.
We forget that it is from such payments that all basic infrastructures are built and maintained. In this article, we will be looking at businesses that are meant to be registered, the reasons why you must register your business (whether online or offline), and how to register your business name for different countries.
Before we start, what businesses do we really need to register? In a bid to answer this question, let us look at what a business is.
What businesses should be registered?
In its simplest definition, a business is any activity that involves making, buying, or selling of goods, or providing services in exchange for money.
This said, it is important to note that anything you do from which you make money, then that’s a business and you need to get it registered.
You might now be saying that you don’t see any need for that because it’s a small one. In a bit you will be exposed to some mind-blowing reasons why you need to register that business even if you are the only worker.
As a blogger, forum owner, or owner of an internet application, there is also a need for you to register your blog, etc. if you really mean business with your internet assets.
What are the benefits of getting your business registered?
There are numerous benefits of getting your business registered and in this section we will be looking at some of them. Some of them are:
1. It protects you from personal liability:To better explain this we will look at an instance. Assuming you enter into a legal case with someone; either you infringed on his patency (the right to exclusively offer produce a particular good or offer a particular service), sold a bad product to your customer, etc. If the person decides to sue you, you will have to pay for any damages he or she claims with your last penny.
You could avoid this case of paying with your personal savings if your business was registered. A registered business separates you from your business i.e. makes you separate from your business. If a registered business (limited liability Company) runs into this kind of trouble, the highest that can be done is to the business’ assets and capitals to settle the issue.
2. Get more customers: you might not be getting more customers or bigger deals since you started your business simply because you haven’t registered your business. The truth is that some people will like to deal with businesses that are registered and so, they avoid doing businesses with.
To illustrate this, assuming a government agency or a big company wants to do business with you, they first check if it is registered and will not like to pay any amount into an individual account. Because of this, they search for your competitors who are registered and patronize them instead.
3. Makes you look more serious: as funny as this may sound, registering your business will make you appear more serious before your customers. It lets them know you are out for business and also makes you put in your best to the business.
This doesn’t mean that you don’t look serious if your business is not registered but you might not grow your business to national and/or international standards.
4. Easier to obtain loans from financial institutions: there are few investors or other financial institutions that can grant loans to businesses that are not registered. A bank for instance can easily grant your personal loans but they cannot grant business loans to finance your business if your business is not registered.
In our previous article, we talked about how to write a business plan and we noted that a business plan helps you obtain loans from banks and grants from other financial institutions. That is actually true but for you to increase your chances of getting the loan; there is need for you to apply for the loan with a business name that is registered.
5. Easier to create a business bank account: with a registered business name, you can create a cooperate bank account in your business name. The benefits of a business bank account cannot be over-emphasized. Some of its benefits is that it helps build trust from both customers, banks and investors.
6. Ensure continuity: Business like Toyota, Mercedes, etc. have lasted for several years and this is simply because they have the business registered and took care of continuity. Registering your business will ensure that your business continues even after you are gone as long as you put the right structures that ensures continuity in place.
Having discussed several reasons why you need to register your business, the big question that might be going through your mind now is “HOW DO I REGISTER MY BUSINESS NAME?”
How do I register my business name?
In almost every country of the world, there is always a body charged by the constitution of any country to be in charge of registering business names within the country. Some of them include; U.S Securities and Exchange Commission (for the U.S), Cooperate affairs commission (Nigeria), Registrar General’s Department (Ghana), etc.
Note: there are also bodies that are responsible for registering business names globally depending on the type of business you are into. You might wish to learn more about how to go about that.You might have to check out the body responsible in your country and get your business registered.
Let us know what you think in the comment section below. Do you have any questions? Let us know.