Business registration refers to a process of registering your new or existing business. A certificate of registration will be received after registering your business, so that in coming future your business get protection under law and your business brand is protected from being copied.

If we register the business on the initial stage only, So we can save our self from Burden full Compliances At the same time, your business also gets proper growth and protection.

Here are few reason why you should get business registered.

1. Build awareness of business brand

A Registered business will receive better recognition from public. By registering business now you are free from the threat of copying of your brand which provides you enough space for execution of brand awareness. By this you creates a brand name or value in mind of public.

RELIANCE, TATA, and many other popular entities have first reserved there brand and then started to invest in its awareness across the world. All these brands are recognized very well and people may have a different level of trust on this brands. This is because

2. Helps to Gain customer trust

A registered business is created as per law thus it clears doubt from the mind of public, in comparison to unregistered business which are not governed by any law. Such unregistered business receives low costumer trust.

Assume you want to purchase electronics from Amazon or Flipkart, And even if there are many options and lower price you will rely on the brand which is registered and has recognized in the market. Thus this signifies that you will also trust the registered & recognized entity, same is the case with major stock of customers.

3. Act as an aid in raising funds

In raising fund a registered business is more capable than an unregistered business. If your entity is registered, then it can easily get loans / advances or overdraft facilities through banks and Can fulfill the requirement of funds or take benefit of the government scheme.

But in case your entity is not registered, then you will neither be able to raise funds from banks Nor will be eligible for government schemes.

4. Helps to Benefits in taxation

In case of taxation an unregistered business generally suffers, Because they pay major part of there earning as tax. However if your business is a registered business then you can claim benefits of deductions on this regular outflow of revenue in the name of tax.

5. Helps to Limit personal liability

The businessman is considered to be the person fully responsible for the business, therefore in case any liability arises all the burden falls on the businessman. This burden could be prevented by registering the business. A registered business has a different procedure to deal with liability. All the liability does not jump into the court of the businessman himself. Therefore it is really important to register your business right from the initial stage.

This example will help to understand the importance more better:

There was a businessman named raj. He was the owner of hotel which was famous in market for quality services. Raj Hotel was unregistered business. but Was famous because of his best quality services. Even customers from different parts of the country came to his hotel. His services were best in that area. One day an entrepreneur shivam came to know about this and he registered the business named Raj Hotels and begin providing services to the customers of original Raj Hotels. food quality and hospitality services were totally different from raj Hotels.

As soon as RAJ came to know about this he filed a complaint for it. But we all know what the result will be, Shivam had won the case as he has already registered the business.

By this example here we understand why business registration is important. Just because no one is copying your brand and you are OK with the liabilities or registration is long process and leads to many compliances and non registration is not hitting much is absolutely not a good reason for not registering the brand.

ITS BETTER TO COMPLY A LITTLE MORE,
THAN TO LOSE ALL YOUR EFFORTS TO THE CORE!!