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Business registration is an important subject that is often neglected in this part of the world. Part of the reason for this seeming neglect is because of the inefficient systems of regulation we have. It is no longer a secret that having laws is not enough but how well the laws are enforced. In Nigeria, there are several rules, regulations and laws enacted that are not implemented the way they should be by the various regulatory agencies in charge.

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However, if you are a business person or you wish to start a business, you mustn’t take the inefficiencies of some of the regulatory agencies as a reason to do the needful in registering your business. This is because registering your business will afford more advantages and opportunities than not registering it.

In this post, I will be sharing with you 6 reasons why you should register your business 

Trust 

There is a popular saying that people do business with whom they know, like and trust. That is simply the truth. As a business owner, the first reason why you need to have your business registered is that it helps you build trust easily. When a prospective customer knows that your business is a registered entity, he or she is more likely to want to do business with you than when it is not. 

Brand Identity 

Registering your business will help you strategically build a brand identity for your business, its products, and services. With a good brand identity, you increase the chances of people doing business with you. People will come to recognize your business, products or services with the name in which your business is registered, thereby helping you achieve a certain level of distinction from competing businesses. 

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Brand Protection

Registering your business will help you legally secure your trading name to your business, thereby preventing persons from impersonating it or doing business with it in the future.

Imagine a situation whereby you have spent years building a business with a certain name and then you receive a notice that you are to stop using the name in business because it legally belongs to another business. You cry foul and seek ways to force their hands to change their business name, but you are not able to. Because you don’t have the locus standi (the legal basis) to force them to not do business in a name they duly registered. In the end, you will be forced to change your business name or risk legal actions against you. It is scary, right? This is why it is important to register your business at the early stages of starting it if you truly have a long term vision for the business. 

Separate Entity

A registered business is viewed in Nigeria as a separate entity that can sue and be sued in its name. As a business owner, you must be able to separate your business from yourself. There are so many reasons why you should do this. The first and probably the most important is that it helps to protect you against some liabilities (this however depends on the registration option you choose) in the event of a business failure.

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Award Of Contracts 

Having your business entity separate from yourself will help you bargain for and enter into some contracts and agreements that would have necessarily not been possible when trading as an unregistered business. In Nigeria, Government agencies are barred from entering into certain business agreements or contracts with individuals. This does not only apply to government agencies but also certain private businesses, organizations, and individuals have rules against dealing with unregistered businesses. So, if you have an interest of one day, taking on contracts from government agencies and also other private firms, you must get your registration documents sorted out before you need them. 

Corporate Account Opening

While you can open a business account in your name as an individual, you cannot open one in the name of your business except it is duly registered with the Corporate Affairs Commission. I have heard from some persons how that they turned away from carrying out a transaction with a business simply because the business had no corporate account registered in its name. Do not let this be your case. 

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This article was first published on 23rd April 2022

victor-ifegwu-mbonu

Ifegwu-Mbonu Victor is a Personal Growth and Leadership Trainer who provides training and coaching to individuals and organizations.

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