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Top Benefits of Registering your Business as a Company

Many people are operating different types of businesses. It could be your primary business or your secondary business or “side hustle”. While you can continue operating your business without registration as a company, there are certain benefits that accrue to those entrepreneurs who make the smart choice to register their business as companies.

Here are our top five reasons why you should register your business as a company:

1. Improve Relationships, Reputation and Credibility with Clients and Business Partners – When you are registered as a company, your clients, business partners and suppliers can gain confidence in their business dealings or agreements with your company, as opposed to when you’re operating just as an individual. It is also important you set up the proper corporate structures. New clients need assurance that you’re a legitimate business and not a briefcase operation.¬†Also, as a company, you can access credit facilities or wholesale prices from other business owners, or transact with government agencies.

2. Limitation of Liability – The level of liability for companies is limited, unlike for sole proprietors and partnerships whose liability for debts and losses are unlimited. A company is a separate legal entity from the shareholders, in which case then your exposure in case of any losses is limited to your interest or shareholding in the company.

3. Enhance brand image – Having a corporate identity can help your business gain trust, enhance your reputation and improve the perception of your business by third parties. Most of the big brands across the world e.g. Nike or Coke, are registered companies. You can also attract and retain high calibre employees to help you grow your business.

4. Attract Investors and Raise Capital – It is easier to raise capital from investors or take loans from banks when you are registered as a company. This is useful if you wish to expand your business or develop new products. Your investors and the banks usually ask for business registration details before they can accept to do business with you.

5. Business Accounts – Registration of your company will allow you to open separate business accounts from your personal accounts, which is good practice. It is also helpful when you give your clients your company or business name to make payments as opposed to your own name.

At Lawmark, we make company registration quick and easy. We also have a range of additional services to help grow and protect your new company from the get go.