New businesses need to be registered in order to gain a license. In South Africa, the organisation or department, which is entrusted with the business of getting companies registered, is known as the CIPC, or the Companies and Intellectual Property Commission. It ensures that all companies, which have sprung up, newly co-operate with the existing laws and regulations governing the corporate sector in the nation of South Africa. There are several company registration firms available all over the country, which help companies’ fashion themselves according to the existing laws of the country. They give the requisite stamp which helps a company to get registered or get a BBBEE certification. Some of the benefits you can reap by getting your company registered, are as follows:
Establishing Business Bank Accounts
Proof is required to establish that your business is properly registered with the state to open a business bank account. It is essential for a small business to have a business bank account because that way it is possible to separate personal activities from business ones. It is lot more professional to give the clients a business name for payment instead of the full name of the company owner/manager.
After having applied for small business loans, a company is going to have to prove that the business is actually a valid business and has the requisite license to trade. All lenders and investors are going to ask to see your business registration along with all the other set of requirements, before having your company approved for a loan. In case the company has applied for a credit card as a business, the creditors might also ask to see your registration paperwork.
Reputation with Customers
Customers and clients, especially people that the company has never dealt with prior to this, understandably need assurance that the business is a legitimate entity. A potential client might suspect the business entity of being a "fly-by-night" or a fraudulent operation if your company is not properly registered. On the other hand, when a business is registered with the CIPC, it could put its clients at ease when making a decision about whether to invest in that concern.
Being registered makes a business eligible to receive supplier discounts that it wouldn't normally receive in its state as an unregistered operation. Suppliers commonly reserve wholesale rates for business owners who can afford to display official paperwork with the stamp of the State. Also, lest one forgets, having registration is one of the foremost concerns of getting contracts from government agencies.
Having a business registration would allow a firm to hire full-time employees and pay them in accordance to the law of the land. When one registers their business with the state, they would receive a state identification number that would allow them to route state taxes on behalf of the employee.
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