Reasons Why Company Registration is Important
When a person wants to start a business, there are various steps which should be followed. One of those elements is ensuring that the business, corporation or company is registered.
It us very important to ensure that a company has been registered due to various reasons. This article will articulate the numerous reasons why registering a company is very important.
First of all, when you register your company, it means that the company can carry out all its operations legitimately because it gives security of the name of the company. When a new company, business or corporations is registered, it usually has a brand mane and a trade mark which means that no other company can use their name to register thus granting them security.
Another benefit which a company gets a s a result of registering with company registrar is that when the need to get access to loans and finances arises, it becomes easier to be loaned by any financial entity which your company qualifies. Apart from that, a registered corporation grants the corporation the permission to open a bank account with any bank of their choice.
When registered, a company usually gets a lawful separate entity which means that the company is ow on its own and that it can be held accountable for its operations and transactions.
Reputation is very important and for your company to have a good reputation out there, it has to be operating on legitimate terms and this starts by registration of the company. Unlike accompany which has its reputation in shambles, a company that is registered and has good reputation will easily be known by people which will make the company more popular something that will enhance sales .
It is easier for a supplier to give discounts to a company that is registered unlike one that is not registered because the supplier cannot be sure if the company really exists or it is just a scum. A company that is not registered will not even dare to appear in the light asking for government contracts because that is like seeking for attention to be thrown into jail to be sued in the court of law unlike when the company is registered therefore can confidently go for government contracts.
Handling a company that is registered in terms of ownership is not as complicated as handling that that is not registered because when registered, it does not require complex procedure to transfer the ownership.
When a company is registered, it is very good because there is no one who can be held solely responsible for the liabilities if the company. Another benefit of registering a company is that the tax burdens can reduce because unlike a sole proprietorship, a company can pay salaries to the owners.