Why would the government urge all business owners to register their businesses? You might think that it is because of the money as you need to pay a certain amount when going through company registration. And yes, that might be part of it.
However, some other reasons why you should register your company are listed below:
Personal liability will be limited
You can never tell when something unexpected will happen while you are running your business that can end up with you paying the liabilities. Without the registration, everything you own can be susceptible to your loss. However, that will not be the case when your company is already registered as it is now a separate entity from your personal possessions.
Tax liabilities will be reduced
Individual taxes are higher compared with business taxes. Thus it goes without saying that if you will register your business, you only need to deal with the business taxes.
You will own your company name
This is another reason why you should register your business. If you have been going through a lot just to come up with a good name for your business, then make sure that you will be the only one to use that. Registering your business will prohibit others from using it.
When you plan to apply for a loan, the banks will hardly trust you if you can’t even register your own business. How can they trust a fraud? Yes, if you won’t register your business, then you can be considered an illegal businessman and who would allow their money to such person?
There are many company structures you can choose when registering your business and Private Limited Company Registration is just one of them. Private Limited Company should be the best company structure you can choose when starting any kind of business.