On Thursday, I told a short story of a person that lost his online business because of carelessness and ignorance. What I did not tell you is that, that actually is a true life story and it happened to my friend. Of course, he has moved on now, rebranded and his new brand is flourishing. Obviously, he learnt a serious lesson first hand and I do not want you to experience it. It is horrible really because shortly after he lost the case, he slipped into depression and did not work for three months.
Today we will be talking about how to register your business and the several types of registration you can do.
The body responsible for registering all businesses in Nigeria is called CAC (Corporate Affairs Commission). They offer different types of registrations and requirements.
Types of Registrations With The CAC
Business name is the easiest form of registration you can do and you can complete the registration online without the help of a lawyer.
Incorporation is a bit more complicated as compared to Business Name, we advise you hire a lawyer or one of the companies that specialize in doing that.
You can use Wingman Formation Company for the registration. I have used them several times and they are reliable.
To Check the process for Incorporation, you can check here.
Reasons Why You Should Register Your Business Now!
It gives you a unique identity (and protects it too)
It protects you from personal liability
It makes you look serious and attracts more customers
In today’s modern world, most customers, especially corporate customers, expect a serious and responsible business to be registered even if you are operating solely online.
In fact, most companies will not do business with an unregistered business. In certain cases, it’s against the law for regulatory and tax reasons.
Think about it for a moment: If your business is not registered, how can you issue receipts to customers for products you sell or services delivered?
And who exactly pays for something these days without demanding a receipt? Unless your plan for your business is to become and remain a petty trading business that sells stuff online, you just have to register it to attract more discerning customers.
Nobody says you can’t survive with a business that isn’t registered. The likely outcome is that you may not grow and will probably remain small for a long time.
It’s easier to get bank credit and investment from investors
For banks, there are basically two categories of loans; Personal and Business Loans. They’re both totally different and one cannot be used to represent the other.
As a result, most banks will gladly lend you money to buy a new car or house but none will give you money to fund a business that isn’t registered. To qualify for a business loan, the Number 1 and non-negotiable requirement is that your business must be registered. Period!
For investors, it’s the same thing. Investors are interested in giving you money for a share of your business, and not to finance your personal lifestyle.
If there’s no registered business, what exactly will you be giving them a share of?
Investors want to know that your business is organized, exists legally and is separate from your personal life and finances.
No investor would take you seriously if you’re asking for investment but you don’t already have your business registered. To them, it’s a sign of unseriousness and a lack of professionalism. You don’t want anybody to have that impression of you.
It’s important for continuity sake
Jumia, Amazon, Konga, Click Bank, and Lina Ikeji’s Blog. Do these names ring a bell?
Of course, they do.
These names are big multi-billion Naira businesses that have existed for a while and if the finders decide to retire today, Another CEO can be chosen to continue the business.
Nevertheless, these businesses, which were quite small when they started many years ago, remain very big and successful today.
It’s called continuity; human beings live and die but businesses have the ability to last forever as they are transferred from one generation to another.
What steps have you taken to register your business today?
If you will like to learn Affiliate Marketing and earn a sizable passive income, I can teach you.
You can sign up as a freelancer on Fiverrcashng to earn extra money for your business registration today.