Three vital reasons why you must register your company
If you have formed a company lately, it is vital that you should make it legalized. Thus, registration of a company is the most immediate duty that will help your firm get authentication. Whether you are the sole proprietor of the company or one of the shareholders of a partnership firm, achieving this legal entity is a must as you can run your business smoothly post company registration. If you are still not convinced and wish to know what will be your gains after this legal procedure, let us help you out.
Personal assets remain secured
Your personal assets remain protected when you register your company. There might be situations when your company lands into legal complexities or a client of yours sues you and seizes the firm temporarily until you prove yourself innocent in the court of law. If your company is a registered one, you may remain assured throughout this phase that your personal assets will never be damaged or manhandled. However, you need to remember that you have to gather enough evidences which act as legal proof that testify that the assets belong to you.
Business bank account can be opened conveniently
It needs no mentioning that every business seeks to have a separate business account that helps to keep track on the inflow and outflow of money due to business needs and assists in the preparation of accounts statement at the end of the financial year. An unregistered company has to go through endless hurdles while trying to get a business bank account. On the other hand, a firm which has been properly registered with the state can readily open a business bank account.
Convenience in getting loans
A successful business needs smooth flow of money. But there might be occasions when a business owner might suffer from inadequate capital. Loans remain as the only alternative to overcome the situation. When a company has a registered entity, it can legally prove its identity and actual purpose of getting the loan, and thus gets the loan promptly.
Now you will certainly feel it is important to get your company registered.