Registering a business name is a crucial step in starting and running a business. In fact, finding the suitable business name for your company should come as a priority during the first steps of your business journey.
Whether you want to register your business name so that your clients can quickly identify with your business or for exclusivity purposes, registering a business name comes with its advantages and disadvantages. In this regard, you might want to consider what your venture needs before registering your business name.
Various Company registration options are available depending on the type of the business and specific business needs. In this regard, you could register your business as a sole proprietorship, private limited company, limited company, and incorporation among others.
Depending on your company needs, you will have to decide the right business name for your company and better yet trademark it. Trademarking a business name is an essential step in business registration that is often overlooked by many entrepreneurs. You can opt to trademark your business internationally or locally depending on specific legal requirements. Nevertheless, here are the main benefits and disadvantages of registering a business name trademark.
Of course, the very first advantage of having your business name trademarked is the fact that it prohibits other business owners from copying your business name. Furthermore, it allows you to prosecute and get compensation from imposters trying to dupe the public using your business name. For small businesses, it may not seem like a big deal, but once you start growing, you realize the importance of avoiding such imposters.
Today, it’s nearly impossible to run a business without at least one social media account. Lucky for business owners, social media companies are able to protect your business name if it’s a registered trademark. In short, you can quickly report malicious activities on social media by 3rd parties that you feel might affect your businesses reputation.
In today’s digital world, again, you have to at least own a website for your business in order to reach a broad audience. In this regard, you are protected by the law if your business name is registered from cybersquatting. Cybersquatting is a form of manipulation used by webmasters to trick your potential customers into visiting their website through using a domain name that is similar to your business name.
We cannot forget to mention the branding capabilities of a registered business name. Furthermore, since they are very easy to renew, you keep your customers and prospects up to date with what’s happening in your company. Apart from marketing, registering your business name could help you catch potential lawbreakers who might try to sell counterfeit products using your brand-name.
When it comes to registering a business in South Africa, the main disadvantages or issues arising are only related to the cost, logistics and the time used to register the business entity. However, there are no direct disadvantages associated with registering your business name that will affect your business once it starts running.
Although it might seem insignificant, the costs associated with registering your business can easily skyrocket especially due to ignorance. In this regard, you need to find specialists in the area to take care of registering the company for you. Better yet, seek legal advice so that you do not miss any steps or requirements during the registration process.
If you want to get your business name registered in South Africa, the process is pretty easy especially if you are working with a professional. All you need to do is get all the required documents, submit them to the secretary of state office and wait for the response. Alternatively, you could scan the materials needed and apply online.
As a new business owner, it might be difficult for you to understand the registration process because theoretically it looks simple but might take up a lot of your time and resources if done in the wrong way. In this regard, it is always a good idea to work with company registration professionals as at the end of the day the cost and the time used is totally worth it. In return, your business name will become an exit and branding tool that no one can play around with.