One of the most important steps a person who plans to put up a business must take is to register the enterprise with the proper government authorities.
Registration enables the business to be officially recognized by the government, and gain in all the privileges and responsibilities associated with the registration.
In addition, registering your enterprise will let people know that they are patronizing or doing business with a reputable organization. In turn your business will be able to claim benefits from government that would be unavailable to you if you did not register your business.
Before actually registering the business, determine the type of business structure appropriate for your business. There are four main types of business structure: sole proprietorships, partnerships, corporations, and cooperatives.
Each type has its own advantages and disadvantages. Most business startups initially register as sole proprietorships or partnerships.
1. Sole proprietorship
Single or sole proprietorships are best for entrepreneurs who intend to run or manage the business alone. Single proprietorships derive its legal personality from the entrepreneur.
Advantages: The entrepreneur has absolute control over the business.
Disadvantages: The entrepreneur has the sole responsibility for all the business\\\' financial obligations. This also means that anyone with a claim on the business can run after your personal assets to settle your debts.
Requirement: Registration with the Department of Trade and Industry by going to one of their branches or visiting their Website.