What are the benefits incurred when a business is registered.

[CALVINDOL]

although in many countries it may not be necessary for small-scale and large-scale businesses to be registered, but there is absolutely a whole lot of benefits and advantage when a business owner registers his or her product under the relevant company or business registry authorities. Below are literally some of the benefits or advantage a business gains when it is registered under the relevant registry authorities :

Legal recognition: A registered business is recognized by the government as a legal entity, which allows it to enter into contracts, sue or be sued, and own property.

Limited liability protection: A registered business is generally considered a separate legal entity from its owners, which means that the business's liabilities are separate from the personal liabilities of the owners.

Access to funding: Registered businesses may have an easier time obtaining funding from banks, investors, and other financial institutions, as registration can be seen as a sign of stability and credibility.

Tax benefits: Registered businesses may be eligible for certain tax benefits, such as deductions for business expenses and credits for research and development.

Ability to hire employees: Registered businesses are able to hire employees, which can help them grow and expand.

Building reputation and credibility: A registered business can be perceived as more credible and trustworthy by customers, vendors, and partners.

Compliance with laws and regulations: Registering a business helps it to comply with laws and regulations of the country that helps to avoid penalties and legal issues.

 

[TOZZIBLINKZ]

Personally what I do know about a registered business is that it wouldn't be treated just the same way that a business unregistered. For example a register business may have the capability and the ability to carry out an international trading with foreign investors or in foreign marketing, based on the fact that it is been certificated and licensed by the government but a business not registered may not have the possibility and ability to carry out in foreign investment or marketing with outside investors. Another possible advantage that comes to a business that is registered is that it has the capability to request for governmental loans and to win government grants, but a business who is not registered may not stand the chance to being issued a loan either by government or by foreign investors.

During times when government decide to sponsor capital project in a particular area such as road and other social amenities which usually lead to the demolishing of both commercial buildings and residential buildings in the area in order to clear a white space for the sponsored capital project, however registered businesses are more likely to be compensated with reasonable amount of cash but does not registered may not be compensated reasonably.