Reasons Why it is Crucial to Get Your Business Registered

Starting our own business does provide an adrenaline rush and we tend to put our blood and sweat to it in order to make everything work. However, most of the time we do not even know what is the right time for getting the business registered. In fact, to be legally secured, registering a business is a must. You never know, what goes wrong and you need to face a court hearing and if you are not a registered company then it may put you in big trouble.

Following are the reasons stating why getting your business registered is extremely important:

Limited Liability:

In case of a sole proprietorship and partnership firm, your partner and you are responsible for anything that happens in the business. From profit to losses, nothing can be avoided. In fact, all the losses in these cases will be borne by the respective persons from their personal assets as well. However, a company is an artificial person in the eyes of law which means it is a separate legal entity. Therefore, the liability, in this case, is limited which differentiates the personal and business assets.

The Founder Conflicts:

At the time of any confusion amongst the founders on the company, each one will be responsible for the number of shares they own. Regardless, of what was communicated either in the written form or verbally before the company was incorporated. In fact, the number of shares owned by the founders will define the limit of their powers in the company.

Position Your Brand in The Market:

Name any hot-shot brand today – Google, Microsoft, Apple, Nike, Adidas, Facebook etc all are registered separate legal entities. By registering a company, the brand value of it increases too. People tend to trust the brand and like to become its trusted customer. Even if you are a start-up company, getting your business registered should be your first priority. If your business is in Singapore and you do not know how to get your firm registered so that it is a legal entity in the eyes of law then here is where you can seek help and get your business registered in no time.

Also, registering your firm will help in the future growth of your company as the third-party only likes to work with a company and not with the owners of it.

Raising Capital:

For a registered company, raising funds and capital via public mediums are  much easier as compared to a non-registered company. It provides you the ease of selling your shares in the open market and borrowing public money. Indeed, money is essential when it comes to expanding the business beyond boundaries and if a company is registered, raising capital for the business by various means become easier.

Also, tax concessions are provided to various industries but this can be claimed only when the business is registered. If not, then gaining the benefits of it is not possible as no tax concession or rebate is given to individuals.

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