Continuity

Do the names ECONET, CBZ, INNSCOR, LAFARGE and ENGEN sound familiar to you? Good. What do they all have in common? They were started by individuals. And because these individuals registered their companies it means their businesses are able to continue without them. They are now separate entities from their person. That’s the power of registering a business. It ensures the continuity of your business beyond just you. Customers are interested in knowing if your company has a future and if the company is able to continue serving them in your absence.

Customers are interested in knowing if your company has a future and if the company is able to continue serving them in your absence.

Limited Liability

Registering a company offers the owner limited liability The business will exist as a separate legal entity from its owners. That is, it will enjoy corporate citizenship as it were an independent individual. This means that if the company incurs debt or is sued, its members are not required to satisfy the claims with their personal assets. By registering your business, your business and personal assets are separated from each other. When the company become bankrupt the owners of the organization will not be haunt by the creditors rather the company is responsible for the debts in its capacity.

When the company become bankrupt the owners of the organization will not be haunt by the creditors rather the company is responsible for the debts in its capacity..

Raising Capital Easily.

It is easier to raise capital for a registered company other than when not registered. When you want to raise initial or working capital through venture capitalist, loans, issuing shares, debenture holders and government grants, registered companies tend to be preferred over unregistered. This is because institutions such as banks, microfinances, government institutions and Private Voluntary Organizations (PVO) who support businesses or investors prefer to deal with registered companies because they know that there is a formal structure to accept their investment.

Participation in tender process

To be considered in the application of both government and commercial tenders you need to be a legalized business entity. All tenders have on their top of the list the requirement to be an incorporated company. This simply means if the company is not registered you don’t qualify for tender. Most tenders are advertised for big contracts and orders, so this represents a very real opportunity for your business to make more money which is important for operations. Don’t neglect this.

Professionalism

In most business transactions, first impressions count. This is even more important when you are transacting with other registered companies. When you want to buy expensive car, clothes, furniture, jewelry, accessory of raw materials, one will prefer a registered company other than an individual. That’s the power of registering a company. It establishes you as a professional in the business world. Clients especially people you have never worked with before, need assurance that you are a legitimate business. A potential client may suspect your business of being a "fly-by-night" operation if your company is not properly registered.

Arrangement with suppliers

The success of every business is depended on its ability to continuous offer quality and affordable prices. When you are registered, the company qualifies to receive discounts from suppliers and these are not normally offered to businesses that are not registered. Suppliers commonly reserve wholesale rates for business owners who can show official and legitimate paperwork.

Credibility

Credibility in business is crucial in assisting your company to attract investors, employees, and customers. Individual and institutions feel more secure conducting business with an established entity rather than a sole proprietorship.