Many business owners see company registration as a chore and something that they have to do. This isn’t at all true, but you can’t overlook the importance of registering your business in the current business climate. It is designed to protect both you and your business interests and if you’re just starting out, then there is a lot of red tape you need to be aware of, before you continue on with your business. Many new business owners don’t understand the importance of registering your business and they only get to find out about its relevance much later, when they are in financial difficulties. It is important to separate your personal interests from your business interests, and a company registration allows you to do just that.
If you were to do a company registration in Singapore, then you would be afforded the protection that this provides. It means that if your company runs into financial difficulties further down the line and payments need to be made, then your personal belongings will not be sold off in order to meet the demands of the courts. If you’re still a sole trader however, they can come for everything that is yours and it can be sold from right under your feet. There are also business benefits for getting your company registered and we will explore some of them here today.
- You will pay less tax – Many people wrongfully assume that because they are smaller enterprise like a sole trader or as part of a partnership, they will pay less tax. The opposite is actually true and once you set up your company with a public company registry, you get to enjoy the various tax breaks that are available to you. You can claim tax breaks on work that is done to the business, money that you spent on a digital marketing campaign, training your staff and many other things. When you get around registering your company, you will find that you have a much lower tax rate than that of individuals.
- Limited liability – If you continue to trade as a sole trader or as part of a partnership, then everything that you own a personal capacity is subject to confiscation and sale if you run into difficulties later. We all need to protect personal assets and that includes our home and our car. You wouldn’t want to see your family out on the streets without a roof over their heads, so putting a company registration into place stop that from happening. You are just starting out and you’re going to the working really hard and so it makes sense that you get rewarded for this instead of getting punished. To learn more about setting up a company and getting it registered, please have a look here.
Company registration helps to protect you with regard to your business brand and your business name. It also gives it legitimacy in the eyes of lending institutions, suppliers and customers and people prefer to deal with a legal entity that is registered and above board.
