If it is your hope to take your growing business from where it is now to expanding all over the country and indeed the world, then you need to start thinking about registering your business as a company. Many people are reluctant to do this because they feel that it is a move too far and yet they don’t seem to understand that there are significant advantages that come with doing something like this. If you continue on as a sole trader then you’re leaving yourself open to financial problems because if your business doesn’t go as you expected to, then if you are unable to pay what you owe then the courts can come looking for your personal items like your home and the family car.
This is why it makes far more sense to look into company formations in Vanuatu because by setting this up, you are putting everything in place to protect yourself and everything that you have worked hard for up until this point in time. There is a lot for you to learn about when it comes to operating a company but for now, the following are just some of the reasons why it makes perfect sense to set up and register the business as a company.
- You get limited liability – This is incredibly important because you have to be able to differentiate your company assets from your personal assets. You do not want to be putting your home jeopardy and losing the roof over your head because you didn’t take the time to find out the difference between a sole trader and a company. Everything in business is all about limiting your liability if things don’t go as planned and you never know what lies around the next corner on the business landscape.
- You are taken more seriously – This applies to customers who want to do business with you and with suppliers who you wish to purchase your raw materials from. Both of these parties find it incredibly difficult to trust the business enterprise if it isn’t registered and believe it or not, but you will pay less tax as a registered company as well. Many wholesalers will insist that you register yourself is a company before they will even think about doing business with you. The same applies to lending institutions and other service providers as well.
It is also much easier to find third parties who want to invest in your business if you are a registered company and this will assist you in your expansion plans.