It feels good to know that as a sole proprietor, you have full control over your business and everything that happens to it. You might also be involved in a partnership, and this allows you to spread the responsibility between the two parties, and if there are any debts and liabilities, then these are divided right down the middle, as well. However, this sense of stability may seem very superficial, when it comes to the payment of debts, and your inability to do so. If your business runs into legal problems, and you’re required to pay a substantial sum of money, then you are personally liable for this. This means that your home, and your personal savings, are in jeopardy, and this is something that every business owner needs to avoid at all costs.
This is why it makes so much sense to have your business registered, and if you are a little unsure about the procedure, then there are service providers that can do your company registration in Singapore, and when that happens, you are afforded all of the protection that it provides. There are costs, to setting up a limited liability company, but they pale in comparison to the costs that you might incur, if there is a legal case taken out against your business. If you’re not familiar with the benefits of business registration, then hopefully the following will help to enlighten you, and encourage you to do it.
- Protect your business name – You may have worked hard for a number of years putting in many hours a day, to establish your business and its brand. However, if your business is not registered, then your company name can be taken from you by someone else. They may even register a company name that is quite similar to yours, and this means that you are not allowed to have a name that is similar to the one that they have chosen. By registering your company, you are protecting your business, and your future profits. It doesn’t make sense to have done all of that hard work for nothing.
- It helps build your reputation – Your reputation is everything in the business world, and so when you register your company, your customers, and your suppliers, will have a lot more confidence because they feel that they are dealing with a more reputable organisation. It also helps with banking issues, and it allows you to set up business accounts much more easily. You will receive a company registration number, and your lending institution will need this, before they can progress further. You also get to enjoy lower taxes, and to find out more, have a look here.
Once your business is registered as a company, your liabilities change, and where once you were reliable for any losses or debts that your business incurred, now that you were a separate legal entity, you cannot be held personally responsible for anything that happens from that point onwards. If there are any issues with debtors, or lending institution, then they can’t come and take your home from you, unless it is a company asset.