In Nigeria, almost everyone has a small business. For some people, it is a side-hustle to add some money to their regular jobs, for other people it is the main source of income they use to provide for themselves and their families. Whichever category you fall into, one thing is the same you need to register your business.
What does it mean to register a small business?
Many of the first and quite critical steps for a business is to register the business name. It is the first step in legally establishing your business. Previously, business registration was a time-consuming and expensive issue for business owners but these days with services like Kippa Start it costs less than 20,000 NGN.
Anyone can decide one day to start operating as a business. All that person has to do is provide a product or service to another person that produces a profit to be "in business". It is not compulsory to register your business and it is not illegal to provide services to an unregistered business. Still, it is definitely a smart choice for all Nigerian Business owners and in this article, we will tell you why.
Establishing Business Bank Accounts
A lot of people complain about the stressful process of opening a bank account for your business especially when it had numerous advantages. With a business bank account, business owners are able to track their business expenses, assess the health of their businesses and pull up records which are very important to show business growth. The requirements for opening a business bank account in Nigeria include a CAC registration certificate.
To open a business bank account, you must show proof that your company is properly registered with the state. A business bank account is an important asset to a small business because not only does it keep your business healthy, it is professional to give your clients a business name for payment instead of your own full name.
Protecting your business name and trademark
Have you ever heard of the saying “nothing is new under the sun”? Well, it applies to businesses as well because someone else is doing the business you are doing and someone else probably wants to name their business what you have named yours. In the world of competitive marketing, registration of one’s business has become a necessity and of utmost importance for the protection of the business name and trademark. So imagine this, you have imitates your business and steal your name. That’s exactly what could happen to businesses that don’t prioritize business registration.
Getting Loans
Getting a loan as a small business from a Nigerian Bank is not easy at all but try to get it without a CAC and watch the account officers laugh at you! When you apply for small business loans, you're going to have to prove that you're actually a business. Nobody is going to give you thousands and millions without your CAC registration documents. Banks and investors will ask to see your business registration along with other application requirements before approving you for a loan.
Reputation With Customers
“Are you sure you are not a scam?” Every Nigerian Business owner has probably heard this statement once and business registration can get you out of this headache. Establishing consumer trust highlights the importance of registering a business. You need to reassure customers and clients that you are a legitimate company, especially if they have never worked with you before.
When a business is registered with the CAC, it could put your clients at ease when making a decision about whether to spend money with your company.
Hiring Employees
Just as people are worried about buying from a fraudulent business, people are worried about working at a place that is fraudulent or shaky. A business registration not only allows you to hire full-time employees and pay them in accordance with the law, but it also gives your workers confidence in your business. It shows that you believe in your business and would even be a means for them to provide better value to your customers.
In Conclusion,
Yes, business registration is not compulsory and the government won’t force you to register your business but it has so many benefits. You may have to invest time, money, and effort, but it's a small price to avoid costly damages and regrets later on. Today's complicated and fast-changing business world makes it smart to register your business. With Kippa, you can register your business for just 15,000 NGN and get it in less than a week.
