The most important reason to have your company registered with the government is to ensure your company name is not registered by someone else.
Below are a few other benefits of registering your business with the government.
Certificate of Incorporation
You will be issued certificate of incorporation by the appropriate government agency. In Nigeria, the Federal Government issues a certificate of incorporation through Corporate Affairs Commission (CAC).
Legal Liability Protection
A Limited Liability protection means you are a different entity from your company.
You also get legal liability protection, if you obtained a loan from your bank, and you are unable to repay as agreed, your bank can only seize company asset but can not seize personal asset because you are protected from such incidence.
Reputation With Customers
Registering your business gives your potential customers confidence that they are patronizing a reputable business.
If your run a startup, which has the option of customers paying online for goods and services, having a registered business together with a corporate account gives your brand more credibility and trust.
Business Trip to Other Country
Every country always welcomes foreign investors who are interested in doing business in their country, so It becomes easier obtain visa and travel to these countries for business purposes.
When your company is incorporated, accessing loan becomes very easier compared to personal loan application.
When applying for a business loan, your certificate of incorporation and others documents will be requested, the certificate will prove that you’re actually a business. This ensures trust and gives investors and lenders confidence that they are dealing with a company and will be willing to lend you money.