WHY YOU SHOULD REGISTER THAT BUSINESS (IDEA)

Business is starting up, doing well and you are making strides, meeting your targets. The thoughts of registering your business come to mind or you have heard people talking about it. You are interested, but really do not see the need. Why spend your hard earned profit giving the government when you can continue your local business without any hindrance? Here are some reasons and benefits I know from registering your business.

1. Validation

You cannot beat the sense of validation that registering your business brings. I remember when the silver grey and green CAC sheet got to me. It was a feeling of accomplishment. My dream was not fully achieved, but I had gotten it off from being just a thought to something concrete. I was not just another startup idea to be added to the countless others in dreamland, it was real and the energy it gave me to forge ahead huge.  As an entrepreneur, you want to break down your dream into smaller achievable tasks and registering is a first step.

2. Save Business name

Ideas are fluid and it will amaze you how a number of people gave the same idea and name like you. A name goes a long way to build the perception and most times you'll find out those juicy names you can easily think off are already taken by others. The CAC gives you the opportunity to select a number of name option under the name search which is the first process in registration. I remember my name search for UMA Photography came back failed because there was an UMAR Photography. The system works with similar sounding or close spellings. So it is very possible you get refused not because the name is taken, but because it sounds similar to an already registered name. The more reason why you should go register now. I have seen people trade under a brand name only to go to register after 5-10years and be told they cannot o same because its already registered. The interesting part is the new party can sue you for trading under their name even though you started far before them. Be advised!

3. Government benefits

A number of government grants, sponsorship and support are available to registered SMEs and businesses. With the need to boost the economy, there is a large focus on helping SMEs develop and scale up production. These opportunities surely always have registration tied to them.

4. Competitions grants and loans

Asides government grants, there are competitions from private individuals local and international organizations for business giving out support to qualified businesses and you would not want to miss out on the opportunity because of a simple issue of registration.

5. Opening a bank account and paying tax

While might not be too comfortable with tax, you'll definitely need to open a bank account as this gives you the ability to be more accountable and manage the finances of your business better. I find it funny when someone who runs a business requests me to pay into their personal account. Even if I go ahead to that it doesn't tell well about the business. You will even be limiting your ability and clientele base because you cannot do business in some quarters without a corporate account.

With the new FIRS platform you can pay your company tax straight from your account. This will ensure that you are up to date on your tax returns and do not fall short of the law.

6. The competitive edge of being Registered

Like I said registering your business gives you a better reputation in business. You gain a competitive edge over others when you are registered and they are not. While you might not have a structure like a full fledged company (that is internal), you can boast of being registered and being able to compete for any job just like them (go fix your structure too!)

Even if it is just a business name, you can take advantage of the current price slash (till 13th August, 2019) to do it.