So I read somewhere that whatever business you run, no matter how good, is invalid and illegal without proper registration.
Don’t be surprised because your business or brand, particularly your SME can only gain a legal reputation only if registered.
Consequently, it is pertinent and quite progressive of you and your business to be registered by the sole body charged with registering and monitoring business and its economics in Nigeria. Thus, it is quite credible of you to be registered by the Corporate Affairs Commission (CAC).
Below are the reasons you should actually consider registering your brand in 2020:
1. Your Brand Name is Exclusive to You
When your business is registered with the Corporate Affairs Commission (CAC), no one else would be able to use your business name to register their own business or company. That is, your brand name will be unique and distinct to you only.
2. You Become a Legally Recognized Body (Entity)
Another benefit of registering your business is that you become a legally identified body to operate business within and without Nigeria.
3. You Have Access to Get Loan
If you’re opting for a loan, chances are, most of the time, your legal identity will be required of you. Especially if the loan is not of the softest category i.e. ₦10,000 – ₦50,000. So good for you when your business is registered. An access to unlimited loan sources from different bodies like the government, banks, private individuals and bodies will be open for you.
4. You Have Access to Grants
You can’t have access to grants without your valid identity from the Corporate Affairs Commission. If your business isn’t recognized by law, your access to grants, partnership, investors, and other opportunities are very slim. When your business is already registered by CAC, it tells grant schemes confidently like the Tony Elumelu Foundation (TEF), African Youth Enterprise (AYE), United States Agency for International Development (USAID) that you are ready to do business.
5. Reputation Building
Reputation and image building is very paramount in business. Through registration of your brand, you build a goodwill for your business. You become an identity people can connect with. You’ll also be proud of yourself.
6. It Enhances Your Credibility and Authenticity
People would be better confident to do business with you if your brand is credible and trustworthy. With your Registration Code (RC), you can also be worthy of training others. It also tells everyone in your business environment ranging from prospective investors, customers, competitors, suppliers etc. that you take your business very seriously.
7. You Can Only Open a Corporate Account with Your Business Name
Separating your personal funds and business finance cannot be overemphasized, especially if you want to be successful with your business. To get this done, it is a normal practice to open a Bank Account in the name of your brand. Your clients can easily send some cool cash. To get this done, it is a popular requirement by the commercial banks you want to register with, that you have a Registration Code (RC).
8. It Makes Your Business Legitimate
By the definition of the law and the constitution of the country, you are expected to register your business before conducting business. However, if this is quite not popular in practice, by now and after conducting that business for some weeks, it will be thoughtful of you to register now.