When you’re starting a new business or looking out for a more business, you may be considering starting a company. Although registering a company can seem like a big step, there’s also many benefits in trading under a company structure. In this article, we will outline some of the benefits of registering your company:
Establishing business bank accounts
If you want to open a bank account you need to provide a proof of properly registered business with the state to open business bank account. Opening a bank account for business is an important asset to small business because you can separate your personal activities from your business activities.
When you apply for small business loans, you’re going to have a prove that you’re actually a business. When approving a loan lender and investors will ask to see your business registration along with other application requirements.
It gives a unique identity
There are certain rules regarding naming a company and registering a company name also provides a n identify to your business. What ever name you choose the first thing is to check that no other business already exists in your name. registering same name can land you into legal trouble. Once registered you are free to conduct the business under your name.
It protects form personal liability
Without legal protection you may lose your business and personal property if something goes wrong. It also secures your company name from unfair practices such as the use of deceptively similar marks by any third person that could cause confusion among consumers. A registered company provides legal protection from anyone who uses the mark. It also improves the possibility to recover damages and can also be pursued for legal action against infringement.
The Longevity of Business Name
Registering a business name means it will have a long life. This means that the business owner dies suddenly the business name will not dissolve. The registered the business name registered can be taken over by another or sold after the death of the business owner. Only a business name that is validated can keep the name after the death of the owner.
Avoid conflict with your founders
When you register a company it immensely helps to reduce the conflicts with your co-founder. When there is registration the control is subject to the number of shares that own the owners will have a clear understanding that their investment in the company is not by any pre-registration verbal or written promises. When there is any dispute regarding a company the share allocation will also determine who has the most decision-making power.
Protection from Liability Accidents
Registering a company name also gives the company legal liability protection. If a business is incorporated no one can illegally take away the personal. They as an individual are held not liable for accidents. If any employee claims that he has been injured on company grounds and sue, that person can only seek punitive damages from company assets, not personal. When you incorporate a business, they are more insurable than those that are not simply because incorporated businesses have less risk attached to them.
Public Perception & Brand Credibility.
Registering a company enhances the brand image credibility and perception of your business. This may also affect the business and the future dealings with third parties as many businesses will only hire and engage with registered companies rather than individuals. Incorporating a business can therefore open up new opportunities that would otherwise not be available.
Business setup services in UAE
If you are about to start a business or looking to grow your better opportunities it is better to register your business. The registration of business name may offer you great advantages protection from legal liabilities and openings to new ways. To get started with registering a business name and pinning down key issues related to the legal procedures of company, request consultations at FAR Consultation Middle East in UAE. Contact us for further consultation.
What is a business registration in UAE?
Many new businesses need to register with the government as well as take out licenses. The registering a business name will authorize to open an operate new business.
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What is the major purpose of business registration?
When a business is registered it is very important as it establishes the business as a legal entity. When a business is not registered the company cannot be legally considered and will not be protected under any grievance procedures.