Here is a story on why I think it is important you register your business.
On getting to Gbenga and Lolu’s wedding on Saturday, I was approached by the server assigned to my table, who smiled at me and said “what would you like to have Ma.”
With the menu at hand, glancing through I saw KOREDE SPAG, my eyes shone and excitement flows through my veins that the stress of getting to the event amidst the rain won’t go to waste after all.
I pointed at it of course and the server hurriedly went to his caterer stand to get my order.
I pointed at it of course and the server hurriedly went to his caterer stand to get my order.
Only after a few minutes of taking down a few spoonsful of the Spaghetti, did I realize that this was not the same taste, am used to during my Unilag days.
I wondered within me and luckily enough I had Korede’s number, I put a call through only to realize that this was actually a different person and business. He had gone ahead to register the business and now has the legal right of ownership.
Korede felt that since everyone knew him by that brand name and he makes amazing sales, he saw no need to register with CAC.
This was how my friend lost a sweet name we all have grown to love just because he didn’t see the need to do the needful.
If as a business owner, you would love to establish a unique brand name that nobody can lay claim to, then you must register it as a legal entity.
Registering your Business is a medium through which an organization is constituted as a legal entity with rights and obligations.
BENEFITS OF REGISTERING YOUR BUSINESS
1) Legal entity:
By law, it is deemed that after you register your business, it is seen as a single entity. This makes it distinct and gives it the rights like that of a person to sue and be sued and also separates it from the owners or directors running it.
2) Personal liabilities and assets:
when you borrow money from a financial institution, persons, or an organization to fund your business, the creditor is only at liberty to offset the debt by taking the assets in the company and not your personal assets e.g. Car, House, etc. except where it is stated otherwise by you.
3) Attracts investors:
Investors are more likely to take your business more seriously and show interest to invest in your company when it’s incorporated than when it is not.
4) Unlimited life span:
When a business is registered as a legal entity, the death of the owner or director does not stop the business from existing. That means the business continues perpetually without interference except when wound up by the court.
5) Enhance prestige and reputation:
Registering your company will l help your brand’s image and perception as people will tend to take it more seriously.
Your brand will also be seen as more legitimate, responsible, effective, and more likely to be trusted.
6) Access to a corporate bank account:
it is considered professional that your customers/clients pay into your business account instead of your personal account which will also help you to be able to know to distinguish between the funds coming in and its profit. Note that without registering your business, you will not be granted access to this account for your use.
7) Access to funds:
A registered business owner gets access to funds via financial institutions or money lending organizations in order to finance the business without stress. This is because lenders tend to be more comfortable giving more to registered businesses.
8) Legal protection:
The most important benefit of registering a business or company is that it preserves your business name from being used by another company or business.
Back to Korede’s story, it is sad but true, that the hard work, energy, and time Korede exhausted into his business and promoting his brand name all these years is nothing now but a waste as he cannot sue the other brand using that name.
All that is left for him to do is to get another name and start building the brand all over again.
Don’t let this be you.
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