A lot of business people in Nigeria are indifferent as to the registration of their business with the Corporate Affairs Commission (CAC), perhaps because of the size of their business or because they are not ready to go through the hassles of business registration. Still others are not enlightened about the importance and business registration. What about you? Have you registered your business? If not, read on to see why you should take a prompt action.
Business Name Protection
If you already have a name for your business in mind, you would not be free to use it for fear of name exposure. If you already used the name on your business flier, billboard, etc., you just might be exposing your presumed business name to the risk of been hijacked-in fact, the name is not yours legally yet. Someone else who loves that name and has registered it with the Corporate Affairs Commission (CAC) is the legal owner of the business name. To avoid this and to protect your business name from being used by other businesses, you need to register the name. . When you register your business name, it is stored in a database. Hence, other new businesses will have to check if your business name has been registered with the state before they can legally use it.
In as much as you want to establish a business entity, legally registering your business legitimizes it. It shows potential customers, lenders, and vendors that you are serious about your work and your responsibilities as a business owner.
Your Business Growth:
It is not practicable to plan for business growth when you did not register your business. Time will come, and you will need to hire more employees, vary your customer payment options, or expand to new locations. You can only do little if without business legitimacy. Perhaps you’re expanding from a home-based online business to a storefront, or ‘vice versa’ by adding an e-commerce component to your brick-and-mortar business. You could open a second location, or eventually a franchise. There could even be an international market for you to sell your goods and service. You may not see these opportunities right now, but there’s no telling what can happen down the road.
Corporate Bank Account:
Registering your business will allow you apply for a business account or a corporate account with any bank of your choice. Usually, for any bank to open a business account for you, it would verify your business address with The Corporate Affairs Commission. After that, a bank account with your business name would be opened for you, this will allow customers to pay directly into your company account; you can even operate a cheque system. And if you would like to run online sales, your business registration status will open the way for you to open a merchant account, which you will need to accept credit or debit cards. While you may operate as cash-only today, future success could result in an influx of customers that rely on multiple payment options.
Business Grants & Loans:
From time to time, you just may have the opportunity to apply for business grant from the government; low-interest loans form non-profit organization, or business loan from banks or money lenders. The first access to such grants and loans is usually your business registration status. You will need to provide verifiable documents to prove that your business is legitimate.