Australia is famed for being the only country in the world that is also a continent. Because of this, the government encourages entrepreneurs to set up businesses to foster a healthy economy. Forever a century, Australia has built numerous brands that its citizens have confidence in.
The Land Down Under is a beacon of stability, making it a safe place to engage in business. In fact, studies show that it is one of the easiest countries to set up and run a business, placing in the top 20 over 190 other economies.
If you are considering to register a business in Australia, with the goal of incorporation, it is beneficial for your company to receive accreditation from the government.
It will require some complex paperwork and a few payments, but you need them if you are looking to set up a legitimate company. In the same token, if you want to grow your operations, you must register your business. Here are the reasons why business registration matters:
Mitigates Personal Liabilities
If you choose to incorporate, you mitigate a lot of risks. In a sole proprietorship, your business has no separate existence from you as the owner. If you are facing any taxes and liabilities, the creditors can run after all your personal assets.
In a corporation, this is eliminated because you separate your business and personal assets. The government or even creditors cannot touch properties under your name to enforce payment.
Proffers Protection as a Separate Entity
Once you register and incorporate your operations, your company is seen as a legal and individual entity with the rights and privileges of a person under the law. The process affords you some level of protection because no other person can steal your unique trade name, designs, and concept.
Since your company is now viewed as another “human” that shall incur liabilities in its own name, it would be easier to take advantage of opportunities and take risks without sacrificing your hard-earned personal assets.
Opens Loans and Financing Opportunities
If you register your business, it will be much easier to raise capital if you want to grow your company. Lenders and investors have more confidence in dealing with registered corporations. The latter has credibility and formal structures in place. If you register a business in Australia, you can easily raise funds through equity financing.
This involves selling a few shares of your company to venture capitalists and other interested investors. Unlike a loan, this process means you don’t pay hefty interest rates. But, you do need to give dividends to these shareholders. The entire process is necessary when it comes to growing your business.
Elevates the Prestige of the Business
When your business is a registered corporation, it shows that you follow the tenets and regulations imposed by the law and other governing bodies. It boosts your credibility, which matters a lot in generating leads and securing conversions. With the proper certifications, you show authority and inspire confidence in your clients, suppliers, and other financial institutions.
Businesses that have registration papers are considered reputable. The Australian government will only consider engaging with companies that have the proper registration credentials. Registering your business certainly opens doors of opportunities that would otherwise have been unavailable.
Guarantees There Will Be Perpetual Succession
Finally, when your business has papers that prove it is a separate legal entity, this guarantees perpetual succession. This means even if you, the one who had the idea to set up the business, passes away, your business can continue to operate and can remain viable. In the same token, even if the company changes ownership, the brand will continue to exist.
When you register as a corporation, this equates to an unlimited lifespan. Only this incorporation allows you to enjoy this benefit. It means you can create a legacy so all the work and effort you put in building your business can outlive you and actually last for many more years, to be enjoyed by other generations.