Although registering your small company may appear to be a large step, it is a wise decision for new entrepreneurs. You want to build and maintain your unique brand as a small to medium-sized business (SMB) owner. You also want to make sure that your personal finances aren’t harmed if something goes wrong with your company.
Below we will look at a few reasons why you should take the leap and register your company in 2022:
Make a name for yourself
Registering your business name allows you to begin developing brand identification. You can check whether the name you wish to use is unique and not identical to an existing company name or trademark when you register your business name.
Customers prefer to do business with well-established businesses. They’re becoming savvier, and they’re doing their homework before buying a product or service from a company. When you register your business, you get a start date that shows how long you’ve been in operation.
Easier to obtain a business loan or open an account
Another advantage of company registration is that it allows a firm to create a corporate bank account and apply for a simple bank loan. A corporate bank account is one of a corporation’s most valuable assets, which can be proven by presenting clear evidence of the company’s registration. Another advantage of business registration is that as a listed firm, you may easily receive a loan from lenders and investors.
Liability protection is limited.
Limiting liability is one of the most fundamental benefits of registering a business. As a sole owner or broker, you are ultimately accountable for all aspects of your business, including debts and losses. You can save your assets after you’ve registered your company. Sole traders and alliances will be jeopardised by a variety of situations, such as a market crash or another. The company’s directors and stockholders are isolated in the event of a corporate loss.
Acknowledgement as a legal entity
A company’s registration confers legal privileges or recognition in a particular country. It establishes the company’s existence as independent of its shareholders. Companies that are legally registered are given preference in the corporate world, therefore registering your firm can help you expand your market and expand your business.
A final thought on company registration
If you are considering starting a business, you should do so as soon as possible. By reading the above you can see that registering your business comes with many benefits. To find out more about company registration in South Africa, we recommend you read this blog post.