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) that will not cost you a lot in terms of paying salaries and incentives.
- 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.
NEXT STEP
For further inquiries, should you consider registering your
business, speak to a member of our team by sending an email to info@lawsavvy.ng 0r call 08079642096
We hope you have found this information helpful. Please
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 a legal advice. If you require
legal advice, please engage a lawsavvy.