WHY YOU NEED TO REGISTER YOUR BUSINESS ENTITY

To conduct business and facilitate commercial transactions, your business needs to be registered as a legal entity and have a dedicated corporate bank account. At the same time, being a registered legal entity makes it possible to officially hire staff and can provide founders with important legal protections. Legally registering your business is a significant milestone, and it shows you are well on your way to creating a successful enterprise


Here are some reasons why you need a to register your business:

  • To ensure your company name is not registered (used) by someone else. 
  • You will be issued certificate of incorporation by the appropriate government agency (Corporate Affairs Commission). Which makes your business certified and recognized by the regulatory authority.
  • It establishes your business as a legal entity and allows you to legally conduct business within your chosen jurisdiction.
  • Most business entities protect personal assets from the business’s liabilities because they are considered a separate legal entity from their owners. However, registering as a business name do not provide such
  • A registered business entity portrays professionalism to customers and investors. Registering your business gives your potential customers or investors’ confidence that they are dealing with a reputable organization.
  • When opening a bank account for your business, you need to show that the business entity is registered. Having a registered business together with a corporate account give more credibility and trust.
  • Most importantly, when you raise money from investors, you must have a registered business entity.
  • When your company is registered, accessing loan becomes very easy compare to personal loan application. This gives credibility and trust and also ensures confidence and your investors or lenders will see that they are dealing with a company and will be willing to do lend you money.
  • Registering a business ensures continuity especially when you have the right structure in place.
  • With a registered business your business can employ full-time employees and pay them salaries and other benefits. You also, have the opportunity to seek for intern especially from National Youth Service Corps (NYSC) or Sure-p that will not cost you a lot in terms of paying salaries and incentives or even cost you nothing in the case of Sure-p.
  • Another great benefit of business registration is that you can easily obtain visa and travel to any country for business purposes. Foreign investors with interest in doing business in other countries are usually welcomed because such good investments will add value to their economy.
 

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For further inquiries, should you registering your business, speak to a member of our team by sending an email to info@lawsavvy.ng


We hope you have found this information helpfulPlease note that this information is provided for general informational purposes only and is not intended to be legal advice. No lawyer-client relationship is formed nor should any such relationship be implied. This answer is not intended to substitute for the advice of a qualified lawyer. If you require legal advice, please engage a lawsavvy.