How important it is to you to be always in the straight line? How do you conceive the government imposed rules and regulations? In everything we do, we need to consider our actions if they have not violated any regulations even in our personal aspects. How much more if it is about an aspect where the government can run after you if you will not abide by their rules! Like when setting up a company, you are required to register your company before you start operating it. Yes, it will entail you to spend a certain amount but just think of this as your own good and not because the government just want to extort money from business owners. You see, in time, there is a chance you might ran across some legal problems with your business especially in the financial matters. If it is not even registered in the first place, then it means that your business is not even acknowledged and legal. How can you stand for your business then? See company register.
Actually, not all people who are doing a business are required by the government to register. But if you are using an assumed name as your business name like it is not your real name, then you need to register that. Aside from being compliant to the government which is a sign of being professional, there are other reasons why you should do so and you can check for them below:
– If you will open a bank account, there will be less hassle especially if the bank account is named after your business. The bank will surely ask for the registration as they can’t accommodate illegal depositors. If you are in a business, you need to deal with clients and it will be more professional if the bank account you will give to your clients is in the name of your business.
– When applying for a loan, you will have more chance of getting a big amount if you will explain that you have your own business. But then again, it is expected that the lender will ask for proof of registration just to protect their business as well. No one will just hand out a good amount of money to everyone claiming they are business owners. You have to show proofs for that and your business registration should be good enough.
– In this competitive world, proofs are quite important like even your clients will ask for your proof of registration before they will even start doing business with you. In fact, you need to hang your proof of registration to your wall for everyone to see. That is how it is nowadays.
Besides, why not register when registering a business these days is just very easy and not that expensive really. Registering it through Incorporator is just easy and quick. There is even a helpline that can accommodate you if you are having a hard time understanding some terms!