WHY YOU MUST REGISTER YOUR DOTCOM BUSINESS IF YOU WANT TO STAY SUCCESSFUL

The story was told of a man who started his PopCorn business somewhere in Nigeria but he did not register it. He started the business because he was sacked from his workplace at a very popular bakery. Helpless, with a very large hungry family, armed with knowledge he inherited from his mom, he was forced to start making popcorn for children that passed through his house to school. Gradually, his popcorn business started growing that he had to employ all his family members including his mother. They did quite well that they started supplying to stores and supermarkets.

One of the things that sustains a business is the owner’s creativity. As people watched how fast this former hungry man was making a good living doing popcorn for children, many others started joining the trade. At that time, starting such a business didn’t require much. Before long, the whole place was saturated with popcorn businesses and it looked like they were all doing well.

The man who started the business originally decided to improve so as to claim back the business from new comers. Here is what he did. He started colouring his popcorn and adding sugar and milk. Before long, he got back 75% of the market share. Then something ridiculous happened to him. His business produced the PopCorn as RYL PopCorn and RYL PopCorn became a household name. Then someone with a better business idea came in. When he saw that RYL PopCorn had not been registered with Corporate Affairs Commission, he quickly applied for a registration and was finally granted RYL PopCorn as his business name as well as the logo. At successful registration of the company and trademark for the popcorn, he mailed the original RYL PopCorn to stop using his registered name. Before long, they went to court and the imitation won because he presented evidence that he is the rightful owner of the business and all its logo and trademarks.

Dear friend, if this story does not teach you any lesson about doing a business that you expect to succeed and you don’t register it, you may end up spending all your time doing your online business for someone else. This post will show you some reasons you need to register your online business despite the fact that you are doing it online and it may not have a physical office.

This post will also show you in summary what it will take for you to register your business and how you can go about it.

You will also see several examples of online businesses that are full time companies with people they pay salaries and why these are making it.

You will know why it is important to have a bank account with the business name of your online business. Believe me, this post if one of the best ideas that will make your online business more successful.

Business Registration -the Idea.

Business name registration makes it possible that a business has a unique name that no other business, related or not, can use to operate. Business name is different from the name of the owner of the business. For example, My name is Mendoh Olivers Uchechukwu. Assuming I want to do my business with my name as it is, there is no need for me to register it. Here is why. The law of the land requires that every business should be identified with an individual or group of individuals. This makes it possible to hold someone responsible in case the business engages in illegal activities. So using your personal name automatically connects the business to you.

But this is different if I want to use a name like Mendoh and Children Enterprise. Although the business name is connected to my First name, it is not my name. So anybody can do business with this name. For me to stop someone from using this name and reserve it for only my business, the law requires that I register it. This is called DBA -Doing Business As.

It is interesting and very disturbing to know that most people that do business online are like the original RYL PopCorn man that we identified at the outset of this article. The reason is not far from our believe that online business is not a physical business. This is erroneous thinking.

What Africa Gets wrong About Online Business

The African man still believes so much that business has to engage two people or more who see themselves and who agree at that time to do business. For online business, Africans have not fully embraced the power of the internet to produce enough trust for business. This is one of things we have gotten totally wrong.

If you tell your friend or friends that you are into online business, often, you create a condition in their mind. Some will start thinking that you are into scam. This happens especially when they always behold you indoors on your computer. It is usually hard to explain what you are always doing and how it does translate into physical cash.

The second wrong idea in Africa about online business is that it is not good enough to make a living for someone and his household. You are not taken seriously most times if you announce that you want to take online business as a career. Many believe that you would hardly see anyone who earns a living by only online business. They do not take online business serious in Africa. That is why the rich doesn’t invest in online business of any sort.

This second reason is why we do not register our online businesses in Africa. I know many friends who claim to be bloggers and what they do is only to post a few articles online in a week. These guys do not have goals that centre on making money from such activities. Without such definition of what you want to achieve by doing a particular thing for a particular (defined) period of time, how can one earn a living from that? So even when you try to show how successful you have been doing online business, they would argue that as impossible. As a result, they continue to discourage many more others who could succeed by doing online business of any sort.

The truth is

Online business is not a joke. Like every other kind of venture, it is a business for Christ sake. It is meant to make someone good money. For people like us who saw the power of the crowd and who defied all odds and disappointments, making it online is such a cheap affair. But it is so alarming that even among some of us who believe in online business and who are doing well in it, most people do not register their businesses.

Here is why. 

Some do feel that it is un-necessary to register a business that is not found anywhere in the physical world. For such people, online business doesn’t have a place and it only exists on the internet. Well, this is erroneous too. Online business is a business and for every business, the interest of the owner is what is normally represented. Everyone runs his business the way he/she feels. If you have a reason to register an idea as a business, what stops you from doing that. At the end of this article, you would have gathered enough reason to register your online business.

Another reason people do not register their online business is the fear of tax. Africa has this tax problem. But believe me, you pay more tax when you do not have your business registered. If your online business is registered as DBA -Doing Business As, you would only have to pay N1,000 per year. This is for filing of annual return. You are not expected to pay such heavy tax as you fear.

People also do not want to register their business because they think it will expose them to the government. Honestly, if you fear being exposed by the government or to the government, what you are doing is illegal. I will assume that every good and genuine business would love such exposure because it can earn you a contract with the state.

Some other people do not want to register their business because they are not ready to employ anyone. You know that registering a business might lead to someone being accountable for his business. This might call for employment of some professionals like accountants and business managers. For fear that one would be paying more money to employ such professionals, some people prefer to run their online business all alone and in isolation.

Friend, I can tell that hiring someone to keep your books or to help you do that yourself is not a waste of resource. This helps you know when you are not doing well in your business. this will also help you upgrade your status and be ready for some contracts you would not ordinarily qualify for.

In most cases, people do not register their online business out of ignorance. Some people do not even know that a business can be registered. As such, they continue to run a very sensitive business without a registered name. If this is you, I want you to look back at the RYL PopCorn story that I told at the outset of this post.

Copy Ideas from Some Online Companies

Google 

The following report is from Wikipedia:

“Google is an American multinational technology company specializing in Internet-related services and products that include online advertising technologies, search, cloud computing, software, and hardware.

Google was founded in 1996 by Larry Page and Sergey Brin while they were Ph.D. students at Stanford University, California. Together, they own about 14 percent of its shares and control 56 percent of the stockholder voting power through supervoting stock. They incorporated Google as a privately held company on September 4, 1998. An initial public offering (IPO) took place on August 19, 2004, and Google moved to its new headquarters in Mountain View, California, nicknamed the Googleplex.

In August 2015, Google announced plans to reorganize its various interests as a conglomerate called Alphabet. Google, Alphabet’s leading subsidiary, will continue to be the umbrella company for Alphabet’s Internet interests. Upon completion of the restructure, Sundar Pichai became CEO of Google, replacing Larry Page, who became CEO of Alphabet”

How profitable has Google been?

Wikipedia continues: “Alexa, a company that monitors commercial web traffic, lists Google.com as the most visited website in the world. Several other Google services also figure in the top 100 most visited websites, including YouTube and Blogger. Google has been the second most valuable brand in the world for 4 consecutive years, and has a valuation in 2016 at $133 billion.

Did you notice that Google, although an online based company, had its registration very early after they started the business as students? It was in this light that I registered DataSwift Limited during my days in university of Port Harcourt, Nigeria. I started the company so that I can compete with some other web designing outfits in Port Harcourt then like Linkserve. Although DataSwift was a very small company with only 100,000 shares, we competed with Linkserve because we knew the business more.

Facebook

If you really want to know what trademark is, check Facebook trademarks. During the visit of Mark Zuckerberg to Africa and especially to Nigeria, most people were describing Mark as very simple and homely. But I saw something different. The T-shirts Mark wore were all inscribed. They had Facebook logos and trademarks. That was the best way to promote his brand. It was a clear indication of how serious Mark takes his business no matter that it is based online.

Facebook is not just a faceless company that exists only online. Let’s check a little statistics of this great company of our era. What you read next is an information from Wikipedia about Facebook.

“Facebook is an American for-profit corporation and online social media and social networking service based in Menlo Park, California, United States. The Facebook website was launched on February 4, 2004, by Mark Zuckerberg, along with fellow Harvard College students and roommates, Eduardo Saverin, Andrew McCollum, Dustin Moskovitz, and Chris Hughes.

The founders had initially limited the website’s membership to Harvard students; however, later they expanded it to higher education institutions in the Boston area, the Ivy League schools, and Stanford University. Facebook gradually added support for students at various other universities, and eventually to high school students as well. Since 2006, anyone age 13 and older has been allowed to become a registered user of Facebook, though variations exist in the minimum age requirement, depending on applicable local laws. The Facebook name comes from the face book directories often given to United States university students.

 Facebook has come under scrutiny for its privacy policies. Facebook makes most of its revenue from advertisements which appear onscreen.

Facebook, Inc. held its initial public offering (IPO) in February 2012, and began selling stock to the public three months later, reaching an original peak market capitalization of $104 billion. On July 13, 2015, Facebook became the fastest company in the Standard & Poor’s 500 Index to reach a market cap of $250 billion. Facebook has more than 1.65 billion monthly active users as of March 31, 2016. 

As of April 2016, Facebook was the most popular social networking site in the world, based on the number of active user accounts. Facebook deems users from the ages of 13 to 18 as being a minor and therefore, sets their profiles to share its content with friends only”

Once again, did you notice that Facebook, although it was purely an online business, was registered the same way physical businesses are registered? Did you also notice that the business/company went public due to its rapid growth and today is among the best quoted companies? Won’t this raise a question in your mind as to where is your online business in your country or in the country of its operation?

Jumia

Jumia is an e-commerce website based in Nigeria. As a total online marketing business, one would be tempted to believe that Jumia is not a registered company in Nigeria. but what is the truth about Jumia? Look at this brief information from Wikipedia:

“JUMIA is a Nigerian online shopping site for a wide range of electronics, fashion, home appliances and kid’s items. The business was founded in 2012 by a team that included Jeremy Hodara, Sacha Poignonnec, Tunde Kehinde, Raphael Afaedor, and Leonard Stiegeler, with funding from Rocket Internet. As of 2015, Jumia has warehouses in ten other countries, including: Egypt, Morocco, Kenya, Cote d’Ivoire, Uganda, Ghana, Cameroon, United Kingdom, Tanzania and Angola.”

Do you think that Jumia would be able to extend as far as you read if not registered properly. Believe it or not, all logos and name at Jumia are registered and the name as it is written is a trademark. No one can use it outside the business done at Jumia.

Nairaland

This information is from Wikipedia:

“Nairaland is an online community created by Seun Osewa in March 2005. It is targeted at Nigerians.

Nairaland currently has over 1,600,000 registered accounts (August 2016), and is ranked as the 7th most visited site in Nigeria (and the most visited indigenous site) according to Alexa.com. 

Nairaland reportedly has over 55 million Internet users, corresponding to 32.9% of the entire population. With Nairaland having a considerable but unconfirmed number of users based in diaspora, this statistic suggests that a maximum 3% of Nigerian Internet users are registered on Nairaland compared to Facebook’s 11 million Nigerian users which corresponds to approximately 20% of the Internet population. Nairaland, however, does have a considerable number of unregistered users, as registration is only necessary for posting.

Figures published by Nairaland in June 2013 suggest that they had 16,668,654 visits from 6,845,453 unique visitors and 60,031,356 pageviews in the 30 days of that month.”

Are you arguing that Nairaland is not just an online business? That Nairaland has a registration with corporate Affairs Commission? That Nairaland logos and brands are registered too?

The whole essence of doing business is to make profit and sustain it as much and as far as you can. If you have a profitable online business, one of the best ways to keep it moving and  secure is by registering the business with the responsible office of the government. And as NELLIE AKALP will have it, Your name represents everything that your business is about, so you’ll need to get serious about protecting it.”

There are many other online businesses that are run as full time online and completely registered business in Nigeria. For example FasteCash.

From the fastecash website I got this information and I quote is here:

“FasteCash.com, an online payment solution system with the vision to simplify online transaction is owned by MeritChoice Limited. It helps Internet marketers and suppliers to accept payment on Internet and provides a convenient way for customers to shop easily on Internet.

With the system, users can send and receive money instantly online without any charge.

FasteCash.com, though not a bank, builds its services on the existing financial infrastructure of bank accounts and credit cards while working towards the ultimate perfection of real payment solution between online and offline traditional businesses.

FasteCash.com also aims at providing tools and services that will constantly make online transaction convenient and easy for all its users.”

We also have other companies that totally function online but are fully registered in Nigeria. These include:

  • Konga
  • Iroko Partners (Iroko TV)
  • Jovago -hotel and travel directory
  • Jobberman -Job and recruitment services
  • Wakanow -travel and online flight booking services
  • Web4Africa -Web Hosting and domain registration services
  • SimplePay -Payment platform for online businesses
  • e-Store SMS – Cheap Bulk SMS service providers
  • SMSBolt -Cheap SMS service providers
  • Paga -Payment platform for online merchants
  • VoguePay -Payment and merchant services for local online merchants
  • NG Careers – Career Services and online recruitment platform
  • HotelNg – Prompt hotel booking and search services
  • GlooNg – A Nigerian e-Commerce platform
  • Kuluya – A game development company
  • Dealday -Another standard e-Commerce website in Nigeria
  • etc, etc.

I have made this small list to show you that serious online businesses register their business with the Corporate Affairs Commission and they do this to protect their company in future.

If you are doing something contrary to this, you are risking the survival of your idea. If you are running an online business and you have not registered it, it is my humble opinion that you do that.

Company or Business Name, which should I go for?

It all depends on what you wish to achieve.

The truth is that once you register a name, and continue to maintain it by filing your annual return with the Corporate Affairs, this name can never be registered or given to any other person in Nigeria. For example, If you register (As a Business Name) something like DataSwift Resources, somebody cannot register anything again in the family of DataSwift even if this person wants to register it as a Limited Liability Company. So keeping a business name can guarantee to you that you alone has the right to do business with this name in Nigeria.

But registering just a business name has its own restrictions. There is a level of business you cannot pursue if you only Do Business As that name. For example, assuming your business is into online data capture and management, and it has the ability to install applications that can check for ghost worker, you may not succeed giving this service to the government. It is expected that such a huge task which can go far into great value of cash, should be given to a reliable firm. And having a business name alone will not give you such qualification.

So if you think of dealing with high-class organizations or government institutions, you may consider incorporating your business and not just registering a business name.

What does it require to Register either a Business name or a Corporation in Nigeria?

I have this price list lifted from Corporate Affairs Commission’s website. Check out what it can take to set up any of such companies:

Registration of Business Names

  • Search for availability of name
  • Submission of duly completed statutory forms with two passport sized photographs of each applicant attached to the form
  • Payment of filing fees at the Corporate Affairs Commission

   

Application form clearly stating:-

  • The name of the business

   

Note:

  • Individual/Proprietors can register business names without the services of the legal practitioner,chartered Accountant or Chartered Secretary.

Fees:

SUBJECT FEES in Naira (₦)
Reservation of Name 500
Registration of business name 10,000.00
Filing of notice of change of business name 5,000.00
Filing of notice of change in business address 1,000.00
Filing of notice of change in proprietorship 1,000.00
Filing of annual return 1,000.00
Filing of notice of cessation of business 1,000.00
Filing of other documents (miscellaneous) 1,000.00
Search on business name file 1,000.00 per business name file
Certified true copy of business name certificate of registration 5,000.00
Certified true copies of other documents 2,000.00 per document

Corporation

Incorporation of Company (Private or Public)

Requirements

  • Availability and Reservation of Name
  • Payment of appropriate Stamp Duty to Federal Board of Inland Revenue
  • Submission of Memorandum and Articles of Association together with statutory forms for verification and assessment
  • Payment of filing fees at the Corporate Affairs Commission

2. Incorporation of a Company Limited by Guarantee

Requirements

  • Availability and Reservation of Name
  • Memorandum and Articles of Association
  • Completion of Statutory Forms
  • Payment of Stamp Duty to Federal Board of Inland Revenue
  • Payment of filing fees
  • The consent of the Attorney-General of the Federation

3. Conversion and Re-registration of Private Company as Public

Application should be accompanied by the following:-

  • Special resolution signed by at least two directors to convert and register the company
  • Memorandum and Articles of Association as required under CAMA for public companies
  • Written statement by the Directors in respect of share capital
  • Balance sheet as at the date of the resolution or the preceding six months, whichever is later
  • Statement must show that the paid-up capital of the company as at the date of the application is not less than 25 percent of the authorized share capital
  • Copy of any prospectus or statement in lieu of prospectus delivered within the preceding 12 months to Commission
  • Payment of filing fees
  • Annual Returns to be filed up to date
  • Evidence of S.636 (in case of banks etc)

4. Re-registration of company Limited by Shares as unlimited Company

An application in the prescribed form signed by two directors and the Secretary and accompanied by:

  • A prescribed form of assent to the company being registered as unlimited
  • A statutory declaration made by directors of the company
  • Stamped Memorandum and Articles of Association incorporating the alterations set out in the application
  • Payment of filing fees

5. Re-registration of Unlimited Company as Limited by Shares

  • Special resolution stating the proposed share capital and requisite alterations in the Articles
  • Application in the prescribed form signed by at least two directors and secretary
  • Memorandum as altered in pursuance of the resolution
  • Articles so altered
  • Company’s balance sheet as at date of the resolution or the precedent six months, whichever is later
  • Statutory declaration in the prescribed form by two directors and the Company Secretary that the special resolution required by Section 50 of the CAMA has been passed, and that the company ‘s net assets are not less than the aggregate of the paid-up share capital and undistributable reserves
  • Copy of prospectus or statement in lieu of prospectus delivered within the preceding 12 months to the Securities and Exchange Commission
  • Payment of filing fees

6. Registration of Mortgages, Debentures and Charges

  • Completion of statutory form with instrument creating or evidencing mortgage or charge attached
  • Payment of stamp duty to Federal Board of Inland Revenue
  • Payment of filing fees
  • If out of time, a court order extending the time should be attached

7. Increase in Share Capital

  • Notice of increase in share capital in the prescribed form
  • Statement of increase in the prescribed form
  • Payment of Stamp Duty to Federal Board of Inland Revenue
  • Notice of increase to be signed by the company’s two directors or the secretary
  • Payment of filing fees
  • Evidence of compliance with S.636 where applicable

8. Change of Name

  • Availability and Reservation of new Name
  • Application giving reasons for the change of name signed by two directors
  • Special Resolution stating the change desired duly signed by two directors of the company
  • Surrender of the original Certificate of Incorporation for cancellation
  • Payment of filing fees
  • Up to date Annual Returns
  • Stamped memo and articles bearing the new name
  • S.636 in case of Banks, Financial Institutions etc

9. Company Searches

  • Completion of prescribed form
  • Payment of search fees
  • Annual Returns to be filed up to date

10. Obtaining Certified True Copies (CTC) of filed Documents

  • Completion of application form
  • Payment of filing fees
  • Photocopies of documents
  • Up to date Annual Returns

11. CTC OF Certificates

  • Affidavit supporting the application deposed by a company director
  • Application to the Commission to be signed by the chairman or two directors
  • Payment of filing fees
  • Up to date Annual Returns

12. Other Statutory Filings

  1. Annual Returns
  • Each company has to within 42, days of its Annual General Meeting submit to the Commission in the prescribed form a statement of its accounts; or a letter explaining absence of statement of accounts. Non compliance with this provision attracts penalty and the risk of having their companies struck off the companies register
  • Payment of filing fees
  1. Alteration of Memorandum and Articles
  • Special Resolution signed by at least two directors to be filed within 43 days
  • Payment of filing fees
  • Re-stamping of memorandum
  • Altered memorandum should be stamped at the Federal Board of Inland Revenue
  • Up to date Annual Returns
  • S.636 to be complied with where necessary
  1. Change of Directors
  • Special Resolution
  • Filing of new form CO7 to be supported by resolution
  • Payment of filing fees
  1. Appointment/Change of Secretary
  • Special Resolution signed by at least two directors
  • Filing of new form CO7A
  • Payment of filing fees
  • Extracts of meeting where directors were removed or appointed
  1. Allotment of Shares
  • Special resolution signed by at least two directors
  • Payment of filing fees
  • Filing of new form C02
  • Evidence of increase in share capital
  1. Filing of Statement of Affairs by Bank, Insurance Companies and other Financial Institutions
  • Every Banking, Insurance and other financial institution shall before it commences business and on the first Monday in February and first Tuesday in August of every year submit to the Commission a Statement of its Affairs

NOTE:

  • Directors of company can register limited liability company (llc) without the services of a Legal Practitioner, Chartered Accountant and Chartered Secretary but must show evidence of membership of that company.

Fees

SUBJECT FEES in Naira (₦)
Reservation of Name N500.00
Registration of private company with share capital of N1million or less N10,000.00
Registration of private company/Increase in Share Capital above N1million and upto N500million N5,000.00 for every N1million share capital or part thereof
Registration of private company/Increase in share capital above N500million N7,500.00 for every N1million share capital or part thereof
Registration of Public company/Increase in share capital N20,000.00 for the first N1million share capital or part thereof
Registration of Public Company/Increase in share capitalabove N1million and upto N500million N10,000.00 for every N1million share capital or part thereof
Registration of Public Company/increase in share capital above N500million N15,000.00 for every N1million share capital or part thereof
Registration of Company not having a share capital N20,000.00
Filing of notice of exemption of foreign Companies from Registration N30,000.00
Re-instatement/Relisting of company name N25,000.00
Registration of charges for private company N10,000.00 for every N1million or part thereof
Registration of charges for public company N20,000.00 for every 1Million or part thereof
Filing of annual return for a small Company N2,000.00
Filing of annual return for Private company other than a small company N3,000.00
Filing of annual return for public company N5,000.00
Filing of annual return for company Limited by Guarantee N5,000.00
Filing of annual report by foreign companies N5,000.00
Filing of statement in form of schedule 14 under section 553 N10,000.00
Filing of notice of merger/acquisition N50,000.00
Filing of special resolution for merger N20,000.00
Filing of other documents relating to merger N10,000.00
Filing of statutory declaration of solvency N5,000.00
Registration of appointment of liquidator N10,000.00
Registration of resolution for winding up N10,000.00
Filing of return of final meeting and account of liquidation N5,000.00
Filing of notice of change of company name N10,000.00
Filing of notice of alteration of memorandum and articles of association N5,000.00
Filing of notice of changes in particulars of directors N2,000.00
Filing of return of allotment and or notice of change in shareholding N2,000.00
Filing of notice of change in registered address N2,000.00
Filing of notice of appointment of receiver N10,000.00
Filing of notice of discharge of receiver N5,000.00
Filing of notice of change of signature N2,000.00
Filing of notice of reduction in share capital by public company N20,000.00
Filing of notice of reduction in share capital by private company N10,000.00
Filing of deed of release by public company N10,000.00
Fiiling of deed of release by private company N5,000.00
Application for extension of time for holding of annual general meeting by public company N10,000.00
Application for extension of time for holding of annual general meeting by private company N5,000.00
Letter of Good Standing N10,000.00
Other filings (miscellaneous) N2,000.00
Certified true copy of certificate of registration N10,000.00
Certified true copies of memorandum and articles of association N3,000.00
Electronic Search N1,000.00per company
Manual Search by customers N2,000.00 per company file
Manual Search Report prepared by officers of the Commission N5,000.00
Certified true copies of other documents N2,000.00 per document
Consent for Restricted Names N5,000.00

There is something I quite appreciate about this new procedure/requirements for company or business name registration. Anyone can now register his business or company without needing the services of a Legal Practitioner Chartered Accountant or Chartered secretary.

Directors of company can register limited liability company (llc) without the services of a Legal Practitioner, Chartered Accountant and Chartered Secretary but must show evidence of membership of that company.” 

That was one of the problems people had in the past.

Another good side of this registration is that you can do several businesses online with just one business name. For example, I run Most of my businesses online -SMS Business, Web Design Business, Blogging, MyWaterPot Website, etc -under the umbrella of DataSwift Limited. You can do the same.

Why You Need to Register Your DotCom (Online) Business if you want to remain Successful -And Benefits of Registering Your Online Business with the Government.

Professionalism

There is a better way of doing almost everything on the planet earth. We can do our businesses without registering them. Sure! But registration is a professional way of running a business and it sure will land you on trust. People and organizations with have more value for a business that is registered than one that is not.

Trust

When a business is registered, it earns more trust and people can rely on statements found on a website that has a government registration backing it than one that has no registration. At registration, the owner of a business makes himself known and available to answer issues raised by his business. As a result of this, people tend to accept this as genuine more than those not registered.

More Opportunities

If your online business does not have a registration with the responsible authorities, it lacks credibility and is denied some privileges.  For example, an e-Commerce website that is expecting to collect funds from the public is required to have a corporate bank account and not just a personal account. Banks will not accept your application for a corporate account if your business is not dully registered. interestingly, you can open a corporate account with just a business name certificate.

Loans are granted to businesses that have good standing. The first step to such a good standing is having the business registered. It is possible that an online business can have good investors after they have gone through what the company or business stand for.

Seriousness

For you, registering your business makes you more serious. It also paints the same picture to onlookers who may likely become your customers tomorrow. I will personally value someone who took the pain to register his business more than a well run business that does not have a registration.

Protection 

Registering a business protects it against hijackers. Remember the RYL PopCorn story that I told at the outset? It protects the business from being taken over by thieves who watch as the business grows and would want to snatch it away from the owner. To guarantee that no such thing will happen to your business. Unless your business goes bankrupt or is formally dissolved, no other person can use or register the same name ever. This is a guarantee that online business people can enjoy. This is another way to protect your ideas from being taken away by other people.

You also protect your personal finances if your business is incorporated. By Limited Liability, we mean that you do not lose your personal income or value you had created over time; something like person money in the bank. If you company goes bankrupt of liquidates, you only stand to lose the amount of investment you have not recovered back from the company at the time of the incident. If you have 3 businesses and they are each on its own, you will only lose money on the failed business and it doesn’t affect the running of the other ones.

By registration, you also protect your business brands. In most cases, what does all the magic is registering your brands and trademarks.

Accountability

If your company is registered, the likelihood that you will employ some professionals to help in the accounts and management exists. This may not be highly paid professionals and this may not be on monthly salary structure. Such professionals know how to charge small businesses who want to keep their books in order. Doing this will help you see how progressive your business is or how badly it is doing. 70% of African businesses are run blindly. They make and spend money without having proper records that show whether they are doing well or failing.

This aspect is very important because it shows the real health of the business. This is something like a diagnoses that reveals the health status of a business. Taking your business serious and getting it to that level where you can always monitor the progress can be propelled by registering it in the first place.

Hiring Employees

Although there are no jobs worldwide, potential employees can still be selective. Would you accept to work for a company that has a name that is not registered. Such a company may well be illegally operating on another person’s name even without knowing it.

Successful online businesses have employees who work for them. To be sure that you will create the best impression in your potential workers, registering your business is ideal.

 Contracts

When you register your business, chances are that you will be eligible for some contracts. I have had several of such experiences when I had to use my company to obtain contracts from Local governments and Bigger organizations. Although your business is online, you stand a chance to be better recognized to train staff of organizations or to render a service to the government if you run a registered online business.

Own Your Business Alone

By registering your online business, you are now sure that you are the legal owner of the business. Someone somewhere might be operating on that name but would be doing that illegally.

How to Register Your Online Business

Although I have touched this aspect somewhere on this post, I would be writing more extensively on how to register your business and kinds of businesses you can register in order to operate and sustain a more profitable business. I will do this in future posts. Please continue to visit this website for better information about building and sustaining profitable businesses from Thin Air.

Having discussed all the above, it is my appeal to you to register your online business to avoid someone doing this and throwing you away from your business.

Understand that your business name being available on domain registration point and your quickly registering this does not guarantee that you have possessed the name. While you may claimed the name online, a smarter person can claim it legally. While he may not stop you from using the name online, he can stop you from doing a particular kind of business given that he has the legal backup to use the name.

While he may lose the online ownership of the name, he can legally stop all forms of your connection with the name. He can stop you from opening a bank account with the name. he can stop you from having sponsors for your business. He can stop a loan from getting through to you.

So no matter what it will take you, start the process today and build a strong online business that has a name backed by law.

To your success

Mendoh

 

5 Comments on "WHY YOU MUST REGISTER YOUR DOTCOM BUSINESS IF YOU WANT TO STAY SUCCESSFUL"

  1. Great write up! But, why you didn’t you add AlaNaija NEWS, http://www.AlaNaija.com, that was registered in Nigeria? The site is powered by APPLESOFT PUBLISHING HOUSE.

    • Write a brief comment about AlaNaija website and post here, I will approve it. Again, do not fail to share this blog with your fb friends. If you follow me consistently, have a time schedule, then you MUST succeed my friend, Gabby.

  2. Great write up! But, why didn’t you add AlaNaija NEWS, http://www.AlaNaija.com, that was registered in Nigeria? The site is powered by APPLESOFT PUBLISHING HOUSE.

  3. Nice One!

    We’ll DO Exactly This At Our Other Brands Just as We’ve Done At Mynaijainfo.com

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