Wondering why you should register your business with the Corporate Affairs Commission? Here are 7 Benefits to Motivate your decision.
Creating A Legal Entity and Protecting Your Business Name
Once you’re ready to register your business, the first thing the Business Registration Office must do is to check, that no other business already exists with the same name. By law, no two businesses should have the same name to avoid misleading or confusing the public. And as long as your business doesn’t fold up and gets formally dissolved, no other person can use or register the same name. An incorporated business is seen as a separate legal entity from its owner(s) or the individuals operating it. And by this, the business can be protected by laws, secure contracts, purchase properties, apply for loans as a corporate entity.
Opening and Operating a Corporate Account
A registered business can open a business account with the bank. Opening an account in Your Company Name is one of the pluses of registering your company name as it enables you open a corporate account in your company name. Having a corporate account gives you more credibility and trust from your customers, bank, suppliers and other business partners. These separates your individual funds from the business funds and brings vibrance to the business. Apart from that it’s a lot more appealing and professional to give clients a corporate account for your business transactions, than personal account information.
Eligible for Substantial Financial Aid
As a registered legal entity that can sue and be sued (this is true in the case of a company, other than business name), financial institutions, money lenders and investors can be confident to provide you with the necessary financial assistance your business needs. An investor can also trust enough to invest in your company. No investor or bank will want to risk investing their money or lending money to a business that is not registered. This is the first and most important commandment that your business must obey to qualify you for any significant financial aid or investment.
Gives you a Professional Image
Registering your company gives you a much more professional image and dominance. It signals to investors that you are committed to professional corporate governance structures that have been created. It emphasizes that the business has longevity and a legacy that can be trusted. Also knowing that you can raise capital by issuing new shares to investors, makes it less burdensome.
Proof of Authenticity
One of the major proofs that your business is authentic and credible is for it to be registered. without this, customer who are ready to do big business with you, will not take you serious and will not be able to trust you enough to carry out sensitive transactions, such as those involving substantial cash transactions.
It helps to Project your Business
Once you get your business registered, it gives you the confidence to project your business to the world and you know that you are now ready to push your business to the next level. Also assured of the protection of your personal image as the company has its own identity. Seeing the registration of your business as a key requirement for trust and authenticity, you can go ahead to get the kind of clients that you need by putting your business through various forms of promotions and publicity different from yours.
As an incorporated company does not come to an end because the founder or business owner is dead or no longer involved in the business. Because a registered company, as a legal entity, assumes a legal identity of its own.
So, in the event that the some of the directors or even the owner of the company changes over time or dies, incorporating a business ensures its successful operation long after the departure of the founder(s). Examples are some of the big corporations we know like Coca-Cola, Guinness, et cetera. These are separate legal entities with structure and processes that can be handed down.
These are a few of some major reasons why you should and must register your business with the Corporate Affairs Commission (CAC). Good news is, with a few easy steps and some guidance, you can get started right away.