Before opening any business, you need to understand the Benefits of Business Registration. This is because most people see business registration as not a necessity for a business while being ignorant of the benefits you can get from registering your business.
We have detailed ten of the Benefits of Business Registration in Nigeria in this post. Carefully read through to know why you need to register your business and how to register your business on CAC easily.
Benefits of Business Registration
The following are the Benefits of Business Registration:
To Get On Record
Getting on the Nigerian business records is not as trivial as it may seem. One of the Benefits of Business Registration under the Corporate Affairs Commission is to be at an advantage at the local, state, and Federal government levels. When you register your business before venturing into it, you will be at a higher advantage.
For instance, you may intend to start up a business with the business name “Informativupdate”, without registering the business under CAC. That same business name may have been chosen by another person, who may have registered the business under CAC.
Now, what you are doing is to promote another person’s business because you do not have a legal backup in the business. Your counterpart in the same stream has so much advantage and the propensity of succeeding in the business than you have.
Therefore, when your business is on record with the CAC, no person can claim your business name or sabotage your business in the course of your financial boom. That is the number one of the Benefits of Business Registration.
Certificate Of Incorporation
The Corporate Affairs Commission (CAC) in Nigeria issues any business registered under the governmental body with a Certificate of Incorporation. This certificate enables entrepreneurs to enter into the business freely without being subdued by the government.
The Corporate Affairs Commission (CAC) is the only official and corporate body in the Nigerian government that can issue you a certificate of incorporation for your business. They are also the body in charge of business registrations in Nigeria.
Building A High Profile Reputation With Your Customers
It is not easy to build a reputation with customers or clients that you have not worked with in the past. When your business is registered, you are at a better edge to build trust and reputation with your customers.
Registering your business in Nigeria gives the customers the confidence to deal with your organization. This is because it is seen as an existent company when it is registered but as a potential scam business when it does not have a legal backup. By building a high-profile reputation, you would be enjoying the Benefits of Business Registration.
Ease Of Service Delivery
A business registered in Nigeria can easily deliver services to its potential customers. Most online businesses operate and thrive in the Nigerian market because they are registered.
A registered business is certified to be a business that the customers can confidently invest in. Customers can pay for goods and services online through a corporate account and have their products delivered to them.
No one would pay for a product under a business that does not have a legal backup by Business Registration. This is one of the key Benefits of Business Registration that you do not have to overlook.
Opening A Business Account
The ability to Business Bank Account in Nigeria is one of the great benefits of registering your company name. A corporate account registered under a business name gives customers the trust and credibility to pull out money from their pockets to invest in the business.
You cannot have a Corporate Business Account in Nigeria if your business is not originally registered under the Corporate Affairs Commission. Your business partners, banks, suppliers, and customers would find more trust in you because you understand the Benefits of Business Registration.
Getting a loan in Nigeria as a business entrepreneur is not easy. Do not mind the juicy advertisements you see online that you can get loans from Nigerian Financial Institutions and pay later with zero stress. This is not entirely true.
Banks and financial institutions can only give you a loan as a capital investment into your business only if it is registered under the Corporate Affairs Commission. The same business has to be feasible and capable of producing a return on investments before you can be awarded a loan.
No Bank in Nigeria would give loans to business entrepreneurs that do not know the Benefits of Business Registration. Unregistered businesses do not have certificates of incorporation that the banks fall back on when going after their money.
Legal Liability And Protection
A business registered in Nigeria as a Limited Liability Company considers the entrepreneur as a separate entity from the business venture. This means that the investor or entrepreneur gets a legal liability and backup in cases of business failures.
With the Legal Liability And Protection, you will not bear the entire losses and likewise profits of the business alone. This allows the business risks to be fairly shared among the investors and stakeholders of the business.
In a case where a business folds or goes bankrupt, the entrepreneur would only lose the business assets and not his assets and liabilities.
Any entrepreneur that intends to start a business normally asks himself what kind of business he wishes to build, the extent of growth he expects from the business, and the expected continuity of the business. Every entrepreneur wants to invest in a business that can continue even after his death to show the legacies that he has built for the business.
If you register your business, the ownership of the business can be transferred to your successors without any hinges on the business. This clearly illustrates the Benefits of Business Registration in Nigeria.
A registered business can take its employees on business trips to other countries without restrictions from the government. Under this Benefits of Business Registration, you can organize business trips, international seminars, and workshops for your staff.
Foreign investors who wish to attend conferences abroad are usually welcomed by most countries. These trips also help the staff and investors build foreign connections for their businesses. You can also make profitable foreign Investments when the economy of the country is not favorable.
You can fully staff your business as an entrepreneur if you have a legal backup in your business. You can employ individuals and pay them their salaries with a registered business name.
You can also seek interns from Sure-P or the National Youth Service Corps (NYSC). The salary you will have to pay your employees would not cost you much and in the case of Sure-P, you may have to pay just a part of the salaries of your employees.
There are a lot of other Benefits of Business Registration but we have limited this post to just the major ten Benefits of Business Registration. If you still run a business that is not registered under the CAC, I hope that you will have a change of thought after reading through this post.
The steps to register your business in Nigeria are very easy so there is no benefit you get from not registering your business in Nigeria.