People who set up their own business enterprises constantly complain that there is too much red tape in place and that governments try to use the whole procedure of unnecessary bureaucracy and foot-dragging. They seem to think the governments and local municipalities are going out of their way to stop them from going into business and being successful. The opposite is actually true and rules and regulations for business are put into place for the new business owner’s benefit and not for the government. One perfect example of this is when businesses are encouraged to register their companies when they initially just want to start out as a sole trader or to be part of a partnership. The reason that they are thinking like this is that they want to get a strong foothold in the business community and then build from there.
However, by trading as a sole trader or as part of a partnership, you’re leaving yourself open to any liabilities that your business incurs and if any costs are associated with this, then the courts will come looking for your private things like your home and your car. By registering your business, you are making your life easier and there are excellent service providers that can complete your company registration in Malaysia for you in a timely and professional manner. By using these service providers, you get to enjoy the many benefits that stem from company registration. The following are just a couple of them.
– It is easier to recruit – Once your company goes through the registration procedure, then you can begin to hire a sense of staff that is needed to make your business a complete service. You do not want to be making mistakes when you hire consultants and your staff will be expecting salaries and so in accordance with the law, your company needs to be registered so that you can get an ID number that will allow you to forward employee’s taxes.
– It’s easier to deal with banks – Without company registration banks will not be interested in considering any loan applications that you might have. It’s likely that you will want to borrow money in the foreseeable future to expand your business and to purchase new stock. Once your business is registered, the bank will need to see the relevant registration number before they can even approve any kind of loan for your business.
– You will need a business bank account – again, the same rules apply and you will be unable to set up a business bank account without the relevant company registration number. You do not want to be banking your profits into your personal savings account because these need to be kept separate in the event of any financial issues further down the line. You will find more information about starting up a new business here and getting it registered.
As you can see, company registration is put in place to protect you, to protect your employees, and to protect your family. You also lose out on many other things like being able to deal with wholesalers easily and being able to take advantage of certain sales promotions that they will only offer to registered businesses.