Importance of Business Registration in Nigeria
Business in its original state means the efforts by an individual or organisation to buy and sell goods and services.
In another word, the word ‘business’ refers to any commercial entity- business or organization involve in any commercial exchange. A business can be run by either for-profit or non-profit(charity).
Again, a business ranges from sole proprietorships to international corporations.
Types of Businesses
- Sole proprietorships: A sole proprietorship business is a kind of business that is owned and operated by a single person. Legally, the owner owns the means of production, tax, and legal liabilities. Any risk that comes up is the sole responsibility of the owner.
- Partnerships: A partnership is a business relationship between two or more persons working hand in hand. Each partner is expected to contribute either in cash or ideas to help move and push the company forward. They are also to share all risk that comes with the business.
- Corporations: A corporation is a business in which a group of people together as one entity in order to achieve a common goal. These personalities are known as stakeholders or shareholders. The disadvantage here is that it comes with some twisted rules
- Limited liability companies (LLCs): Unlike the others, it is not so common in this part of the world and was first available in Wyoming in 1977. It is a legal business entity owned by its members. It can combine the pass-via taxation of a partnership or sole proprietorship with the limited liability of a corporation.
Importance of Business Registration in Nigeria
- LEGAL RIGHT: Registering your business gives you the full backing and right to operate that business.
- REPUTATION: A certified business gives such a business a good reputation and reception from the public circle as well as legal recognition
- It also helps avoid copywriting: The name and services you provide are surely protected.
- It also helps avoid legal battles and problems with the government.
- It does not require formal meetings and twist and unnecessary rigid corporate governance meetings like companies that are incorporated.
- ACCESS: It gives access to easier bank loans and other services.
With this said, the importance of business registration is huge and cannot be intentionally overemphasized hence the advantage surely outweigh the disadvantages. As discussed, business owners have that all-around edge when their business is registered.
It also helps avoid legal battles and problems with the government.
Do what is Right! Register your business today.
How to Register a Business Name in Nigeria
1. Choose a Business Name and Check For the availability of the business.
2. When It’s done, complete your Pre-registration Form to register your Business Name
3. Pay For a Filing Fee
4. Prepare your documents for Upload. Proceed to Upload
5. Submit the original copies of your documents
Do what is Right! Register your business today.