The prospects of building your own business are both exciting and challenging. But if you’re someone who has the ability to deal with a high risk-high return ecosystem, nothing can stop you from giving wings to your entrepreneurial dreams! And while kick-starting any venture on your own entails a great deal of meticulous planning at every stage, your starting point after the initial research must be towards getting your business officially registered. Not only will this be advantageous to you but also several people who are going to engage, either directly or indirectly, with your idea (in the form of product or service). Therefore the best thing you can do is to register a company and embark on your enterprising journey.
Here are four reasons to register your business:
Adds Credibility: One of the most fundamental reasons to get your business registered is that it adds a lot of value and legitimacy. From a consumer’s perspective, it enables them to trust a product or service they’re keen on using from an organisation that has all the pre-requisite approvals and certifications in place. From a supplier’s perspective, it ensures them that they’re essentially dealing with or collaborating with a business that has a sense of protocols, regulations and structure in place. Registering your business is like underlining trust for stakeholders and customers across the spectrum, without which your business will not be able to scale up.
Minimises Tax Liability: Another critical advantage of opting for business registration is that can it tremendously help you manage or even minimise your tax liabilities depending on the size and scale of your business. And how does this work? Well, imagine a scenario where you’re operating as an individual proprietor in the absence of registration. In such a scenario, you’re liable to be taxed on your existing individual income plus additionally on the excess revenue you would be generating through your venture! Once you get your business registered by meeting all the necessary criteria, in time, you would also be eligible for suitable tax benefits depending on the nature or domain of your business.
Helps to Build a Brand: A direct benefit you can get once you register a company is that it gives you the liberty to create a brand, trademark it and promote it the way you wish to. And which in turn helps to build an impactful industry repute. This way, you can keep abreast with the practices your competitors are adopting and, in time, even surpass them. But all these things are only possible when you register your business in the first place! Besides, it is a widely known fact that building a brand image is the first step towards building a market legacy that can render your venture synonymous with quality and trust if it consistently keeps delivering.
Eligible for Investor Capital: And finally, in the era of unicorns and venture capital investments, it is only a matter of time to get investors interested in your business and convince them of the potential it possesses. Again to do this, you will first have to deliver on multiple fronts, all of which can be possible only with a valid business registration. Investors, any day, would be interested in placing their money with a credible organisation than a solo proprietor as there is a significantly greater margin of accountability with the former.
By considering the above points, you must have realised that to be able to do anything valuable in terms of scaling, legacy or brand awareness, registration is the starting point.