You need to formally register your business in the most cost-effective and least time-consuming way possible.
To register your business to allow you to reap the significant benefits which are not available to unregistered businesses. This will give your business a legal identity which empowers you to operate fully within the framework of the law. You need to formally register your business to get access to financial services provided by commercial banks. You want your employees to benefit from the welfare protections registration brings.
2 Registries, explained
A company registry records and updates information on new and existing companies in its jurisdiction. It allows registered companies to comply with their obligations under the current regulatory framework, including those related to company laws.1
The registry incorporates legal entities, providing them with a unique identification, and de-registers insolvent firms.
Other services provided by a registry include:
- Conducting company name searches
- Reserving company names
- Processing applications for business licenses
Registries enable the government to:
- Measure tax compliance or avoidance in the formal sector
- Gain business statistics by sector
- Determine which entities are eligible to participate in public tenders and bids
- Promote consumer protection in “high risk” industries such as pharmaceuticals and food preparation by ensuring they meet the required health, safety, and environmental standards
What makes a business registry efficient
A registry is considered to be efficient if it is either a comprehensive electronic database, a one-stop shop, or an increasingly popular online registration platform.
An electronic database
An effective electronic database maintains up-to-date information and documents on newly registered and existing companies. Electronic databases make information easier to access online or on-site at a registry’s office.
Historically registry records were kept in a paper-based format, but increasingly registries are stored and maintained electronically. This has reduced errors in updating business information and sped up searches. Electronic record keeping also makes it easier to access statistics.
A one-stop shop
A one-stop shop provides a single service point for completing several business registration processes. It might be a series of offices occupied by representatives from different government agencies that start-up owners visit one after the other. Some one-stop shops give a single point of interaction between a business owner and all the government agencies involved in business registration. Here, the business owner gives all the documents necessary for registration to one contact, who will distribute the documents to the appropriate agencies for processing and approval.
One-stop shops are becoming more popular, with over 100 economies launching one-stop shops. Of this figure, 64 are located in low-or middle-income economies.
3 Online registration platforms
Registering your business online is the most efficient way of registering. It lets you file incorporation documents electronically and sometimes even lets you complete the entire business registration process online.
The most common online registration features include:
- Online company name search
- Electronic submission of documents and applications
- Online filing of annual accounts
- Exchange of data between different agencies
For example, in Singapore and New Zealand owners of start-ups can complete the entire business registration process online. Thanks to the connections between different agencies’ systems, they can register their business with tax and social security authorities at the same time that they complete their registration process.
The benefits of using online registration
Using online services to register your business has several advantages. It is faster than going to a one-stop shop. It is less expensive than paper-based registration processes, with minimal costs, if any. Another advantage is that economies which allow start-up businesses to register online are less likely to have bribery or corruption, as the opportunity for interacting with officials is non-existent.