If you are thinking of starting up your own business here in Australia then you are to be congratulated for that because going out on your own can be a very stressful situation. You are certainly taking a risk and not every business is a complete success and you need to know this before you begin. The great majority of new businesses fail within the first 2 to 3 years of opening and this happens for many different reasons. It might be that the market is not ready for the particular product or service that they are offering or maybe there is too much competition out there. Whatever the reasons, you want to make sure that you hit the ground running and that you put yourself in the strongest position possible going forward.
This is why you really want to consider company business registration because not only does it keep you legal but it also offers up many additional benefits for your enterprise as well. Many people prefer to remain as sole traders or as part of a partnership but they are leaving themselves wide open to financial responsibilities in the event that the business fails. The following are just some of the many different benefits of registering your new business here in Australia.
- You get legal protection – This is essential for any new startup and as was mentioned briefly before, you do not want to be putting your personal assets in any jeopardy. If you fail to register your business and you remain as a sole trader then if your business goes to the wall, you are liable for any debts that are owed and if that means the courts confiscating your home then that’s what can happen.
- It helps to build credibility – You want to build a sound reputation as a business here in Australia with your customers and with your suppliers as well. If it is a registered entity then this can help to build a level of trust because many people want to deal with a business that is properly registered as they know that they will be protected when they purchase goods and services from you.
- You can apply for funding – It is very difficult to get any kind of lending institution to lend you funds in order to be able to expand your business if it is not registered. You also cannot apply for government tenders and so this puts you at a great disadvantage to your competitors who have already registered themselves. Once you get the funding, it is possible to expand your business and to reach out to many more customers which should result in an increase in profits.
By registering your Australian business, you are doing everything that you can to protect not only your business but your brand as well. You do not want someone else stealing your business name and your trademark right from under your nose as you failed to register it in the first place.
