Company registration is not an easy task. In addition to the responsibility of building a solid and productive organization, entrepreneurs must be concerned with a series of legal aspects necessary for the proper functioning of the business. These can get quite cumbersome, which is why some people are reluctant to comply with such procedures. This is a mistake. The formalization of the company is a very important step to take, since it not only ensures its legality but also provides a series of benefits, which experts summarize below:
1) Credibility: It allows you to build a solid image in front of customers, suppliers, the media and the general public.
2) Financing: Formal companies can access loans and credits from different financial institutions.
3) Tax credit: You can make purchases with invoices and access the tax credit.
4) Find business partners: Being formal will allow you to associate with other people and companies in order to improve the positioning of your brand.
5) Tender: You can participate in public tenders and carry out work for the State.
6) Attract investors: You have a better chance of attracting investors’ attention.
7) Better control of the business: If you keep your accounting properly, you will be able to have a successful control over the income and expenses of your business. This will allow you to implement the appropriate improvements and make the right decisions.
8) Avoid sanctions: If you keep all your documents in order and comply with your obligations, you will avoid suffering fines and other sanctions, such as the seizure of your assets or the closure of your business.
9) Benefits: You can access State programs or private institutions that seek to benefit micro, small and medium-sized companies.
10) Social responsibility: If you pay the taxes that correspond to you, you will be contributing significantly to the growth of your country.
Why is it important to formalize your company?
First of all, it is extremely important to keep personal and business finances separate. Although you can do this without having to formalize your company, there are legal implications that you must take into account. When you create a company, you establish that the assets belonging to your business are separated from the personal assets, which, in the event of bankruptcy or any financial problem of your business, will help you, since it will not affect your personal assets but only it will affect your business.
Second, with company registration, you project greater confidence in your customers. Although you probably already have their trust, the formalization of your processes helps to empower them even more. In addition, it allows you to build a solid image in front of your current and potential clients, suppliers, and the general public, which will greatly help the growth of your company.
Is it very expensive to formalize your company?
In simple words, no. Nowadays it is possible to do it at very low costs, many of the procedures being free, also depending on the size of your company. In addition, you must bear in mind that the formalization of your business brings with it many benefits that will make your company grow, so investing in company registration it is a very important investment.