Company registration an important step of company formation
Soon after completing and testing the market to see the efficacy of your business idea, the next step is to proceed towards completing the documentation process to become a licensed and authorized entrepreneur to operate a company lawfully. This is an important legal activity, which is necessary to execute in order to become the part of local and foreign trade sector. Applying to obtain legal permits from the local government is not only an official requirement for capitalists; rather it is also necessary to shape up the economy. It has been observed that the private sector has a strong potential to create a wide range of jobs, which helps to reduce the percentage of poverty in the region. After seeing the financial benefits of establishing small-scale setups and companies, state governments across the world implemented rules and regulations, which all the owners have to follow to get themselves registered with the authorities.
Reason to register a company
Company registration in Dubai is one of the most important legitimacy, which has to be fulfilled while establishing a setup. If you ignore and skip this step because of the financial deductions, you will be facing issues like less credibility and lack of reliability in the long run. Stakeholders and customers, you are dealing with might discontinue making transactions and availing services. Ultimately, no one wants to deal with the firm, which is not registered.
To avail more publicity; only an authorized firm can fearlessly run the marketing campaign to spread a word about their products not only to the public but also in the industry. After completing this mandatory requirement, the company clearly revealed its loyalty and standing not only for customers, but also for the state government of the region. Existing clients keep on supporting licensed vendors, whereas prospective client always prefers to avail services from a reliable service provider with the huge customer base of satisfied customers.
To render a more reliable image, the primary aim behind becoming an entrepreneur is to either sell something or to offer some sort of services. You can’t expect people to avail your services, until you promise to offer them some sort of reliability. In case a customer encounters an accident while using the product, lawsuits will call you to display your license to prove your authority to sell a commodity. In case, your firm is not registered, the court can freeze your accounts while suspending your operations.
To get loans, especially, if you are a startup with small capital, you will need financial assistance from investors and venture capitalist. It’s hard and almost impossible to obtain funds from banks and investors. Everyone will ask you to show the documents, before they sanction the loan. Irrespective of the size of your setup, you must not ignore registration at the time of company formation in UAE.
To get a work opportunity with big names, outsourcing services to a third party or subcontractors has become a common activity among huge corporate. They are actively doing it to reduce the significant amount of money after outsourcing a function to a subcontractor at reasonable charges, in contrast to hiring a dedicated resource. If you register yourself as a service provider, it is more likely a prospective customer will consider hiring you as a contractor. Everyone prefers working with vendors who are accredited with the governments.
To protect private property, no matter how efficiently you have planned the whole strategy, you never imagine the circumstances, which will halt your business during an initial phase. In case of failure and financial losses, stakeholders and customers will sue you and as a result law authorities will arrest your commercial property and private assets too. In case, you don’t register your setup as a separate entity. In contrast to that, a registered setup will protect its owner to experience the bad situations.
Summary: Every territory has defined its unique process for company registration. All you need to do is to consult with the reliable company offering registration services for entrepreneurs.