Why You Should Register Your Small Business

Just like there are essentials to being a human being, like food, clothing, and shelter, a business has its essentials too.

Essentials are things needed to remain in good shape; and for a business, one of such essentials is startup registration.

It is true that startups are so important because of how they make our lives easier and how they contribute to the nation’s economy, but not registering your startup may cause more harm than good to your business.

The startup registration process in Nigeria is pretty straightforward as long as you follow the correct procedures. The name of the organization you will be registering your business with is CAC – Corporate Affairs Commission, and the startup registration can happen under the following categories:

• Business Name
• Incorporated Trustees
• Private/Public Limited Liability Company
• Unlimited Company
• Company Limited by Guarantee

Here are a few reasons why you need to carry out a startup registration:

Secure Name

By registering your business, you secure your name so that no one else can use it without attracting consequences. With a startup registration, it is impossible for any other organization to use the same name lawfully in Nigeria. That’s a win for you.

Brand Authenticity and Credibility

Registering your business gives a more authentic and credible outlook. Your brand image credibility is enhanced and your business is also perceived better. Large corporations and other third-party bodies are usually reluctant to do business with unregistered businesses, and you will only be taken seriously when you are duly registered.

Corporate Account

You can only create a corporate account with your business name when that name has been duly registered with CAC. By now, as a business owner, you know how important it is to use a corporate account for transactions, instead of personal accounts.

Protection From Business Risks and Liabilities

The thing with having a business is that you are exposed to all kinds of risks and liabilities as a result of the business. You can lose your personal assets if your business gets in trouble with a customer. However, incorporating your business as a separate legal entity from you protects you from these risks.

Financing

Investors are more likely to give you their money only when you are a registered business. This means that it is easier to raise money as a registered business through equity financing which is much better since you do not have to repay the money.
You can also use debt financing, and easily get loans or borrow money from commercial organizations since you will have proof of registration.

Legal Entity Rights and Privileges

Registering your business allows for your business to become a separate legal entity, having rights and privileges just like any other person. As a separate legal entity, your business can now own property, be sued in its name, or sue, company has an unlimited lifespan since it can go on perpetually even after you die and can only cease to exist formally by order of court.

These are just a few of the many reasons why you need to get your business registered. Found this helpful? Share with someone.

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