1. Separate Legal personality.

This is especially for a limited liability company ( LLC). 

Once you are registered your company becomes an artificial person with a mind of its own.

It can enter into contracts, buy properties sue, and be sued in its corporate name. 

This is one major advantage that the Ltd liability company has over a business name.

2. Corporate account opening.

Having a separate account for your business will help you to be able to manage your finance.

You may never know the cash flow rate in your business if you keep mixing your personal money with your business money.

You actually do need the registration of business certificate or the incorporation certificate to facilitate the account opening process.

For purposes of tax, one of the documents to be submitted for collection of Taxpayer identity number (TIN), VAT certificate, etc is the certification of incorporation.

3. Bidding/ Award of contracts.

Only registered businesses are usually considered for contracts by government agencies and private organizations.

No one wants to trust an unregistered business with a major contract.

Some organizations will go as far as insisting on an Ltd liability Company and not just a business name.

4. Trust Issues.

Running a registered business creates a sense of trust in the minds of your potential clients.

People buy products and services from people they, know, like, and trust.

5. Attraction Of Investors

An investor can only put his money in a legal entity which can only be made possible by incorporation.

If you are running a business and have the interest of attracting investors into it either now or later, it is very important that you incorporate the business.

And this should be done early on before a conversation is opened with an investor.

6. Bragging right

For the serious entrepreneurs who desire to build a business that will outlive them, the day you finally register your first business especially as an Ltd liability Company marks a significant day in your life just like any other life-changing event.

Guess what?

People can actually easily find out whether you have a registered business or not before they decide to do business with you.

Do you want to get started with any business registration Needs?

Reply to this email now and let us help you.

To Your #LegalSense

#BarinaadaLegal