Gone are the days when trading activities took place without the intervention of the government authorities. It is not that government officials these days disturb the businessmen in any manner. But currently, almost all the state authorities make it compulsory for the businessmen to undergo certain official formalities that include register a business as the first step.
Those stepping into any trade are advised to register the entity as the process is advantageous as under:
- Professionalism – They come across loads of advertisements of various companies with different names. Their brand names themselves speak for their products and activities. Those who register their companies find great reverence in the business community and the public at large. A registered company means telling the customers that you are not going to leave the field all of a sudden. Your registered name speaks for you and it is a proof that you will be there in the market for prolonged years. Running the business without any registered name may not be so impressive as regards making your products and services popular enough.
- Account separation – Those running the business without registration usually make and receive payments in cash. However, running the business as a registered entity means you are maintaining separate account books for the company. The customers would make the payments for credit to your company’s registered name. Business accounts are maintained in separate manners and have nothing to do with private accounting. Those registering their businesses are at a great advantage if something goes wrong with the trade and the company becomes a defaulter as regards debts. Failure of any registered business does not have any adverse impact upon the personal savings and properties. It is the company and not the individuals that have to repay to the investors.
- Raising funds and loans – They often come across advertisements of big registered business houses that seek investments from the society. No individual can do so. Likewise the lenders and financial institutions prefer to facilitate loans to the entities that have got themselves registered with the concerned offices.
- Recruitment of employees – It is advised to register a business before recruiting any employee. The educated class and even the workers prefer to work with the registered companies that are often sheltered by the government authorities up to certain extent if they fulfill the requisite terms and conditions.
- Reputation amongst the customers and the suppliers – It is a fact that the customers generally rely upon the trading or manufacturing concerns that have got their company names registered. It has been seen that many unregistered companies often fly by night after fooling the clients and looting millions of dollars. However the clients are satisfied with the registered entities that have to undergo many processes including the one to register a business. Same is true with the suppliers that trust the registered businessmen as regards products and services.
Registering a trade means earning great reputation and taking your company to the heights of success.