Business Registration Benefits
You may escape the claws of the taxman if you keep your business unregistered with statutory bodies, albeit for a while, but you are missing more with your business staying unregistered.
We enumerate a few of the benefits you and your business stand to benefit by registering or incorporating your business:
1. Establishing Business Bank Accounts
No regulated bank anywhere in this world can open a bank account for your unregistered business. To open a bank account, you need to provide proof that your business is a properly registered business in Ghana.
GHStartups.com has a guide for opening a business bank account. A business bank account is an important asset to a small business because you can separate your personal activities from your business activities. It is also more professional to give your clients a business name for payment instead of your own full name.
You cannot get any funding or credit product from GHStartups.com without a registered business.
2. Getting Loans
When you apply for a startup or small business loans, you're going to have to prove that you're actually a business. Lenders and investors will ask to see your business registration along with other application requirements before approving you for a loan. If you apply for a credit card as a business, creditors may also ask to see your registration paperwork.
You can't get a loan from GHStartups.com without a business bank account.
3. Taxes And Liability
Registered businesses must have an Tax Identifying Number (TIN) with the GRA. This ensures the legitimacy of the business entity as a legal and tax-statused operation. Further, it ensures compliance with legal standards for bookkeeping and accounting. This establishes that the business is paying taxes, employees are covered under adequate insurance and the business is reporting income to the government. There are also many tax benefits to registering a business - See the article in our blog on Tax Strategies 101.
4. Reputation With Customers
Establishing consumer trust highlights the importance of registering a business. Customers and clients, especially people you've never worked with before, need assurance that you are a legitimate business. A potential client may suspect your business of being a "fly-by-night" operation if your company isn't properly registered. When a business is on file with the Registrar General's Department, it could put your clients at ease when making a decision about whether to spend money with your business or company.
5. Supplier Arrangements
A registered business also makes you eligible to receive supplier discounts that you wouldn't normally receive as an unregistered operation. Suppliers commonly reserve wholesale rates for business owners who can show official paperwork from the state. Also, if you plan to try to get government contracts for your company, a business registration is one of the first requirements.
6. Hiring Employees
A business registration allows you to hire full-time employees and pay them in accordance to statutory laws. When you register your business in Ghana you'll receive a Tax Identification Number (TIN) that allows you to route taxes on the employee's behalf. So if you plan to hire on employees to your business, it's best to take care of registering your business before you even start the search for workers.
7. Continuity
Another benefit of registration is the business continuing even if you die or become ill. A registered business is an entity in its own right; thus, another can assume ownership or control or your business can be sold. Neither are possible without registration.
8. Business Purpose Travels
You can easily obtain visa and travel to any country for business purposes, even when you may not qualify to embark on such a trip in your personal capacity. Every country always welcomes foreign investors who are interested in doing business in their country because such good investments will add value to their economy.
9. Allows for Stock Incentives
One of the defining elements of a stock corporation is the stock structure, which gives board members and employees a share in the ownership of the company. This can be an attractive benefit for employees and can lead to higher employee retention rates.
We enumerate a few of the benefits you and your business stand to benefit by registering or incorporating your business:
1. Establishing Business Bank Accounts
No regulated bank anywhere in this world can open a bank account for your unregistered business. To open a bank account, you need to provide proof that your business is a properly registered business in Ghana.
GHStartups.com has a guide for opening a business bank account. A business bank account is an important asset to a small business because you can separate your personal activities from your business activities. It is also more professional to give your clients a business name for payment instead of your own full name.
You cannot get any funding or credit product from GHStartups.com without a registered business.
2. Getting Loans
When you apply for a startup or small business loans, you're going to have to prove that you're actually a business. Lenders and investors will ask to see your business registration along with other application requirements before approving you for a loan. If you apply for a credit card as a business, creditors may also ask to see your registration paperwork.
You can't get a loan from GHStartups.com without a business bank account.
3. Taxes And Liability
Registered businesses must have an Tax Identifying Number (TIN) with the GRA. This ensures the legitimacy of the business entity as a legal and tax-statused operation. Further, it ensures compliance with legal standards for bookkeeping and accounting. This establishes that the business is paying taxes, employees are covered under adequate insurance and the business is reporting income to the government. There are also many tax benefits to registering a business - See the article in our blog on Tax Strategies 101.
4. Reputation With Customers
Establishing consumer trust highlights the importance of registering a business. Customers and clients, especially people you've never worked with before, need assurance that you are a legitimate business. A potential client may suspect your business of being a "fly-by-night" operation if your company isn't properly registered. When a business is on file with the Registrar General's Department, it could put your clients at ease when making a decision about whether to spend money with your business or company.
5. Supplier Arrangements
A registered business also makes you eligible to receive supplier discounts that you wouldn't normally receive as an unregistered operation. Suppliers commonly reserve wholesale rates for business owners who can show official paperwork from the state. Also, if you plan to try to get government contracts for your company, a business registration is one of the first requirements.
6. Hiring Employees
A business registration allows you to hire full-time employees and pay them in accordance to statutory laws. When you register your business in Ghana you'll receive a Tax Identification Number (TIN) that allows you to route taxes on the employee's behalf. So if you plan to hire on employees to your business, it's best to take care of registering your business before you even start the search for workers.
7. Continuity
Another benefit of registration is the business continuing even if you die or become ill. A registered business is an entity in its own right; thus, another can assume ownership or control or your business can be sold. Neither are possible without registration.
8. Business Purpose Travels
You can easily obtain visa and travel to any country for business purposes, even when you may not qualify to embark on such a trip in your personal capacity. Every country always welcomes foreign investors who are interested in doing business in their country because such good investments will add value to their economy.
9. Allows for Stock Incentives
One of the defining elements of a stock corporation is the stock structure, which gives board members and employees a share in the ownership of the company. This can be an attractive benefit for employees and can lead to higher employee retention rates.