All businesses in South Africa are required to be registered by CIPC and have a company registration number. There are quite a few benefits to this but some of the main reasons are listed below:
1 – Draw customers and the company looks legitimate
Most people want to do business with companies that are reliable and have their paperwork in order. This will help draw customers by showing them that you are serious about your business. And in the long run, grow your business.
2 – Loans and banking
To get a loan for your business from a bank or any financial institution then it is required to have proper documentation and registration numbers. This would also allow you to acquire a business account.
3 – Separates you from the rest
Your company is something that you built, it is your idea, your skills which set it in motion, so it is different from any business and unique. Registering your company will separate it from others.
4 – Avoiding the risks
Registering your business prevents you from personal loss and seizure as it separates you as the individual from the business. Your personal belongings cannot be seized to pay off any incurred debt.
5 – Application for tenders.
One of the first requirements of applying for tenders in South Africa is to have a company registration number. It is practically impossible to acquire tenders from government institutions or bigger private companies without a company registration number.
Please let us know your thoughts below or even more reasons you may have as to why we should register our business.