Business can be simply defined as an organization or an enterprise entity that is engaged in commercial, industrial or professional activities. Having known this, the purpose of a business is to organize economic production of goods and services.
Business can also be defined as an enterprising entity that carries out professional activities. For-profit businesses, they do business to earn profit and for the non-profit business, they do it for charitable purpose. Having known this, in todays article, we will be discussing the benefits of registering your business because it is essential to ensure the safety of your business.
Obtaining a loan becomes easier after you have successfully registered your company because it instills confidence and provide credibility and trust in your investors and lenders. Funding is very necessary in business and when the need arises, it will be very easy to facilitate the process with your business documents. The reason being that your business is seen legally which can be tracked and accounted for, it is much more better than loan applications.
There are also trusted microfinance banks that are set out to assist large, medium and small scale businesses in obtaining credit facilities for their businesses.
CERTIFICATE OF INCORPORATION
The Corporate Affairs Commission (CAC) offers you a certificate of incorporation once your registration is complete. The good thing about this is that they now issue e-certificates which is opposed to the manual system which initially required the business owners presence to obtain a certificate of registration and incorporation.
Your registration is automatically accepted when you complete the registration of any business on the commission portal and the certificate is automatically generated in your dashboard for you to download at your convenience. Do you know that registering your business gives you the right to it? Also, the certificate of incorporation that will be issued to you provides a small business in Nigeria with legal recognition and a very good reputation.
BRAND IMAGE CREDIBILITY
A registered business enhances your brand image credibility and the perception people have about your business because credibility is an essential quality a business should possess. It gives your potential client’s the confidence to deal with what you stand for as a business because most people feel comfortable paying for your services and products into a corporate account rather than paying into an Individual account if not you tend to lose potential client’s.
Also, most customers will do business with you only if your business is registered and your invoices/receipts have your business details on it because it gives them confidence that their money is in safe hands and they are not being duped.
ABILITY TO OPEN A CORPORATE ACCOUNT
A registered business can open a corporate bank account, which gives it control over its finances because the importance of business registration cannot be overemphasized. It is very helpful for businesses that need to make large payments or receive large sums of money because clients prefer paying money in a corporate account rather than an individual account.
For credibility and financial administration, a company bank account is very necessary because you can open a business bank account in your company’s name after registering your firm with CAC. Having a business account is very important to businesses because it will enable you separate your personal activities from your business activities and in that way there will not be a mixup of funds.
The benefits of registering your business cannot be overemphasized because the benefits outweigh the disadvantages and registering your business enables the continuity of that business.