Now that you have decided on your business’s structure and selected your business’s name, what follows is registering your business with the respective authorities. Business registration is the process of making your business formally part of the business register of a country. Any business in any structure doing business using a name different from its own legal name will need to register the name of the business. Business registration may take the form of registering an assumed name or forming a business entity.
Registering an Assumed Name
An assumed name means a name other than the legal name of an individual. We call assumed business as DBA meaning that “doing business as” name. Using and registering an assumed name is the same as telling the public that you are ding business in the name other than you legal name. Why do we use assumed names?
An assumed name means a name other than the legal name of an individual. Using and registering an assumed name is the same as telling the public that you are doing business in a name other than your legal name. Why do we use assumed names? We use assumed names due to the following reasons:-
- The legal name is difficult to pronounce.
- Want a name that does not restrict growth. You may wish to sell more than one product and the current name does not reflect a catchy meaning to the business.
Registering a Business Entity
Registering a business entity covers the entire process of forming a business entity. To form a business entity one must file some registration documents with appropriate registration authorities in respective countries. Despite the filing of documents, there must be a proper name search to ensure that there is no duplication of business names. To get country-specific requirements on the process of registering your business name, please visit your country’s rules and regulations about business name registration. A good example is business name registration in the United Republic of Tanzania.
Advantages of Registering a Business
Registering a business name has a number of advanteges including the following:-
- Providing legal capacity and recognition of the business.
- To protect the business name.
- To provide formal recognition by the financial institution in operating financial transacvtions.
- To facilitate smooth marketing without confusion to the customers.