If you have been running an unregistered business for sometime, this article will give you five reasons to regret your action/ignorance.

However, if you plan to start a business soon, the reasons in this article will prevent you from missing out on the benefits of a legally registered business.

A registered business is one that legally exists and is recognized by law. It is one that enjoys certain rights, benefits and privileges that an unregistered business cannot enjoy.

1. It gives you a unique identity (and protects it too)

Once registered with the name you chose for your business, you’re legally free to go ahead and design a logo, create business cards and letterheads, and do anything you want with the name.

Can you magine your business card with an inspiring logo and the name of your business boldly written across it and your name as CEO? That’s truly unique and inspiring.

2. It protects you from personal liability

This is arguably the biggest reason why many people have to register their business.

Without the legal protection of limited liability, you could lose your business and personal property if something goes wrong (say somebody sues you to court for heavy damages).

Don’t forget, not all company types can offer this protection. Only Limited Liability type companies can do this. Sole-proprietorships and partnerships (except Limited Liability Partnerships) cannot provide protection from personal liability.

3. It makes you look serious and attracts more customers

In today’s modern world, most customers, especially corporate customers, expect a serious and responsible business to be registered.

In fact, most companies will not do business with an unregistered business. In certain cases, it’s against the law for regulatory and tax reasons.

Think about it for a moment:If your business is not registered, how can you issue receipts to customers for products you sell or services delivered?

4. It’s easier to get bank credit and investment from investors

For banks, there are basically two categories of loans; Personal and Business loans. They’re both totally different and one cannot be used to represent the other.

As a result, most banks will gladly lend you money to buy a new car or house but none will give you money to fund a business that isn’t registered. To qualify for a business loan, the Number 1 and non-negotiable requirement is that your business must be registered. Period!

For investors, it’s the same thing. Investors are interested in giving you money for a share of your business, and not to finance your personal lifestyle.

If there’s no registered business, what exactly will you be giving them a share of?

Investors want to know that your business is organized, exists legally and is separate from your personal life and finances.

No investor would take you seriously if you’re asking for investment but you don’t already have your business registered. To them, it’s a sign of unseriousness and a lack of professionalism. You don’t want anybody to have that impression of you.

5. It’s important for continuity sake

A registered business is an asset (like a house, car and other properties) that can be passed down (as an inheritance) or sold by its owners to a new generation of people who can continue to own and run the business.

Registering your business will help you achieve your dreams of continuity.

How To Register Your Business?

In Nigeria, for example, business registration is handled by the Corporate Affairs Commission.You don’t need to hire anyone to register your business. You can actually log on to a website and do it all by yourself.

However, yo can hire accredited profesisonals (lawyers and accountants) on Pukena.NG to help you register your business.

You can check them our here: https://pukena.ng/startup-legal-services