Home > Business, Development, Zimbabwe > 10 reasons to register your company

10 reasons to register your company

The informal sector has played a great part in the Zimbabwean economy in the last decade. There are more informal businesses than formal businesses. These businesses employ the bulk of the workforce and provide an income to millions. I believe that it is time for some of these businesses to enter the mainstream of business and formalise their operations. By entering the mainstream of business I am simply saying, get in there with the big boys. I can almost hear an outcry that it takes money to do that. I agree, but with forward thinking and careful planning, many businesses can make upward progress. Start with three things only.

Register your business,  Open a bank account, Get your tax clearance. 

It may seem like an unnecessary hassle to do these things since your business has been operating for so long without being registered. The price of staying on the fringes is dear. Opportunities shall come, that you will not be able to take advantage of them because your business is not registered.

Twelve reasons to register your business:

  1. The biggest reason is liability. As a sole trader your assets may be at risk if your business fails.
  2. As a sole trader, profits are taxed at a personal rate and as a company, only the salary you pay yourself is affected.
  3. Creates credibility, legitimizes and formalises your business.
  4. Proves that your business exists.  Don’t  appear like a briefcase company that will take customers money and run.
  5. Create a banking history and relationships with your  bank.  Investors, partners etc will always want to see your banking history.
  6. Some businesses may be eligible for grants, loans and various incentives from the government.
  7. Savings can be made by purchasing goods as companies.
  8. Protect your ideas, your business name and your company.
  9. Get ready for big opportunities. To apply for tenders and deal with big companies, your company needs to be registered.
  10. Own and build something of value.

 This is a good number of reasons and I hope that you find them compelling.  Your business maystand to benefit from formalizing operations. Take your business to a higher level. Think big and grow big. Start to run your business like it is worth millions. As the saying goes, if you want to be a millionaire, think like a millionaire and act like one too. Same goes for your business.

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Categories: Business, Development, Zimbabwe
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