You probably have a business and is thinking of when is the right time to register it.
Legally, the business owner must register their business before any business transactions.
This is to make the business more legitimate.
Additionally, When your business is not registered, You are probably missing out opportunities.
Truth is, registered businesses enjoyed advantages over those who are not.
Having your business registered has four main advantages:
- You could raise capital for your business
Admit it, cash is the lifeblood of your business. You can’t really do so much when your funds are limited.
If you want to attract investors to your company, your business must be registered. Your ability to raise funds will be a lot higher.
2. You could have access to more customers
Let’s face it, clients especially those who are big corporation will ask for your business registration and official receipt.
You would be scrutinized by your ability to fulfill the service or product expected for you to be delivered.
Because we are now in the information age, customers tend to scrutinize with businesses before they transact with it. There are some customers who would ask first for your business registration, before dealing with you.
3. Account opening of your business
One major rule in accounting that a lot of businessmen neglect is the separation between the business owner and the entity. Often times, the money is not accounted for properly because the owner and the entity have the same bank account.
Having your business registered gives you the opportunity to open an account separate from your own.
The earlier the better
Ms. Janice Balaoing, account manager of Permitly, suggests that a business should be registered business as soon as business idea come into mind
“When you have your preferred business name, then register it already,” says Ms. Janice.
As long as the idea is validated
Meanwhile, For Startup Ph training founder Mr. Carlo Valencia, He believes that business registration should be done when the idea is validated already and there are clients who are willing to pay
“When you are testing your business idea, you shouldn’t register it yet. Once it is validated and the client is asking for an official receipt, then you have to register it,” Valencia added.
There is no actual standard as to when is the right time to register your business, however, the advantages of having your business registered clearly outweighs the cost of it.