As a small business owner, you really should be thinking about having your business registered. The prospect of registering a business is seen as a pretty big step, when you have been a sole trader, or involved in a partnership for a number of years. However, as your business grows and it starts to become more successful, then you need to take additional steps in order to protect everything, that you have worked hard for, and to protect your brand. You also need to put protections in place, to make sure that your personal finances are not affected, and if your company does run into difficulties later on, then the assets of the company, are only sold off to pay any debts.
If your business has a well established name, and clear identity, then you need to protect this as well. If it isn’t registered, then anyone can make a claim to it, and set up a business in the same name. Thankfully, there are service providers that can provide you with the means of doing all of the paperwork required, so that you can have a successful company registration in Singapore. The following are just some of the benefits of company registration, especially if you are a small business.
- It provides added protection – If you are currently involved in a partnership, or you are a sole trader, then your business is operating under your own personal name, and so when you file your taxes, these are done on your personal income tax return. In the eyes of the law, you and your business are exactly the same thing, and that isn’t in your best interests. If there are issues with debtors, or your business is going through a legal procedure, then you are liable for any monies that are owed. This means that your home can be sold in order to gain the necessary finances to pay any debts.
- It provides legitimacy – In the same way that a managed service provider can benefit your business, having your company registered also offers many great benefits. In order for your business to be seen as credible, suppliers and wholesalers, want to be able to see a company registration number, and a letterhead with your business name on it, and not your personal name. Prospective customers also prefer dealing with a legitimate undertaking, and when they feel confident with your business, then they are more likely to buy more of your product or service. There is also free government advice in relation to setting up a company.
If your business starts to grow and you want to be able to find funding from lending institutions, then you can qualify for a business loan much more quickly, if your company is registered. It sets your business apart as a separate financial entity, and it protects all of your personal finances as well. This is a very sensible thing to do, and it protects not only your future, but the future of your family.