You have great business ideas and want to start your new venture or you may want to grow your existing business. You may be thinking about whether it is the right time to register a company. Setting up your company is very easy and stress-free. A registered company offers greater legal protection. By registering your business as a company you can operate more effectively with legal compliance.
Here are the 5 Biggest Advantages of Registering Your Company
Limited Personal Liability
The first and foremost benefit of doing business by registering as a company is a limited liability conferred upon the company’s directors and shareholders. A sole trader or partner is legally responsible for all business aspects including debts and losses. But a Company is a separate legal entity. The creditors of your business cannot lay claim on your personal assets in the event of losses in the business or business failure. Your liability is limited to the shares owned by you. A company is a sure way to protect your personal assets from your business actions. The Directors or Shareholders are not made bankrupt and have no personal liabilities in the event of business failure.
Enhanced Brand Image and great relationships with your customers and suppliers
Think about the biggest brands in the world today: Microsoft, Walmart, Coca-Cola, Google, etc. All are registered companies. Registering your business as the company enhances your reputation and perception of your business. Accountability is also established with your company structure.
Third parties like customers and suppliers prefer to have business with a company rather than with proprietorship or partnership. Hence registering your business as a company is important for any future dealing with third parties. Even larger organization open their business gates only to companies.
Raise Big capital
If you register your business as a company, you can easily attract investors and raise money for your business. A company gives you the ability to borrow and incur debt, but more importantly, it enables you to sell shares and raise equity capital. Raising money is essential for the development and expansion of your business. Investors and banks prefer to lend money to companies than proprietorship or partnership firms. As such a company has better avenues for borrowing funds. It can issue debentures or accept deposits from the public too.
Easy to attract quality workforce
With your business registered as a company, you can easily attract a quality workforce and achieve the strategic motivation of employees. You can use a flexible and wide range of management designations or ESOP to attract and retain a talented workforce in the company. The secret behind the success of any business is the talented workforce.
In the company form of business, you can draw up a contract with any of its shareholders/directors. A person can have control of a company and at the same time be in its employment. Thus, a person can be a shareholder, director, creditor, and employee of the company at the same time. For eg: He can receive remuneration as a director + He can receive the dividend as a shareholder + He can receive lease rent as a lessor + He can lend money and earn interest as a creditor + He can supply goods from his other business as a supplier.
We make your company registration quick and easy. It is a 100% online registration process. We offer a range of packages and additional services to help protect your company from the get-go.
Ready to Register? Contact Us!