If you are starting a new business or want to grow your business, you are probably thinking about starting a company. While registering a company may seem like a big step, there are also many benefits to doing your business under a registered structure. In this article, we will outline 5 benefits of registering your company and how this might affect your business growth.

1.your personal liability will be limited
As a single trader or partnership you are legally responsible for all aspects of your business, including liabilities and losses. In addition, if you sell a defective product or make a mistake, you will have a personal obligation. Doing business in this way can be dangerous, as it means that your personal belongings are also in line.
In contrast, a company is a separate legal entity and is an easy way to protect your own assets from the actions of your business. Any Debts incurred by the company will not stick to you, this allows you to focus on building your business.

2. your tax liability will be reduced
When a business in Nigeria is registered, the business owner has a separate legal entity than the business itself. Thus, the business owner receives separate legal protection. Where credit arises from the business, the owner will not be held personally liable. If the loan is repaid and there is a default, the bank will not hold the personal property of the business owner; they will only reserve company assets.Furthermore, depending on your country, your business will be eligible for a variety of tax deductions, including advertising, education and training, and repairs and upkeep.

3. You can avoid disputes with your co-directors or founders.
Registering a company is very helpful when a dispute arises with your co-directors or founders. When you register your company, the owners' control is based on the number of shares each member owns. Owners will have a clear understanding that their investment in the company is not through any oral or written pre-registration promises. In case a dispute arises, the allocation of shares will determine who has the most power to make decisions.
Similarly, companies may allow you to separate business ownership and management. For example, you may have a few shareholders, but appoint managers who are not owners of the company. This allows the business to be managed by professionals who are experts in the business, with the objective of maximizing profits for the business, to the benefit of the shareholders

4. Trustworthiness and brand recognition
Think of the biggest brands in the world today - Yahoo, Google, Facebook. All of these are legitimately registered companies. For a business to thrive and grow as much as possible, having a company structure is essential.
Registering your company enhances the reputation and vision of your business. The company is its own organization, working separately from you. You will be accountable to the authorities of your country and work under the registration bodies for example in nigeria, Corporate Affairs Commission, (CAC) Federal Inland Revenue Services (FIRS), etc.
Being a registered company is also important in any future partnership with foreign companies, as most businesses will only hire or partner with registered companies. This means that your business contracts will have your company name on it, rather than yours.

5. As a corporate entity You can raise more money for you business
As a company, your ability to attract investors and raise money for your business will be easier. Registering your company gives you the ability to borrow and lend but most importantly, sell stocks and raise equity. If you have another business plan, you will need to pay taxes on your personal tax statement even if that money stays in the business.
Ability to raise money can be important in developing and growing your business. Investors prefer to invest in a registered company than to invest in a single trader or partnership, especially since they know that there is a legal framework in place to protect their investments. Read further here
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