When you are considering launching a business or looking into a business plan, one of the first things you will notice is that you are recommended to register your business. Depending on the country you will be conducting business in, you might need to register for things like TIN, LEI, URT, and VAT numbers.
You might consider putting the registration off for a while; in most cases, this is illegal and means that neither you nor your customers have the right protection should something go wrong.
Everything you do in business should have benefits – even when they are legally required. Here are some of the benefits you can expect from registering your business.
Reputation
Without a good reputation in your business, you don’t have much! Customers are now savvier than ever, and when they look at a website or see a business on social media – they are more likely to check they are registered. They know to look in the footer for incorporation numbers too.
When your business is registered, you will be instilling a sense of truth in your potential customers.
Finance
Start-ups can access a lot of financial support and products, but your business needs to be registered to access them. Once your business is registered, you can get your first business bank account. Business bank accounts help you keep your business finance in good order, some with products like business credit lines, overdrafts, working capital, and a business manager.
And, if you aren’t registered, you won’t be able to access any of the many small business loans, grants, and funding of other kinds either.
Investors and lenders will want to see that you are a legitimate business. Even if you haven’t traded yet, ensuring you are registered will mean you have an official business and are eligible to access many different types of cash injections.
Hiring
You might not need it in the early days, but if you plan to grow and expand your business, you will need to hire employees. Full-time employees need to be hired and paid according to the law in your country.
Having a registration number means you can ensure the person’s taxes are in good order.
Taxes
Not paying your taxes is illegal, and if you are running a business but haven’t registered it – it is only a matter of time before that gets found out. When you register, you get the registration number that will enable you to stay above board and legal, comply with the law, and pay the taxes you owe.
Suppliers
While it is not impossible to find suppliers willing to supply you with wholesale goods. To benefit from wholesale tax breaks and more bonuses, you need to have a registered business. The supplier will add it to your file, and you can enjoy significant savings on future shipments.
In most cases, registration is quick and easy, so if it is making you reconsider your plans to launch a business – don’t worry! Perhaps you are waiting for a big sign that it is your time to launch your big idea; here are some ways to tell: 10 Signs You Need to Start Your Own Business.
