Limited liability: One of the main advantages of registering a company is that it provides limited liability protection to its owners. This means that the owners’ personal assets are separate from the company’s assets, and they are not personally liable for the company’s debts or legal issues.
Increased credibility: Registering a company can increase its credibility in the eyes of suppliers, customers, and other stakeholders. It shows that the company is committed to its business and is willing to follow formal legal requirements.
Access to funding: Registered companies have access to a wider range of funding options, such as bank loans, venture capital, and angel investors, which can help the company grow and expand.
Tax benefits: Registered companies may be eligible for tax benefits, such as lower corporate tax rates, deductions for business expenses, and the ability to carry forward losses.
Perpetual existence: A registered company has perpetual existence, which means that it can continue to exist even if the owners change or leave the company.
Brand protection: Registering a company provides brand protection by allowing the company to register its name, logo, and other intellectual property with the relevant authorities.
Overall, registering a company provides several advantages that can help the company to establish credibility, protect the owners’ personal assets, and access funding and tax benefits.