Many governments are encouraging their citizens and foreign entities alike to start up their new business and so contribute to the economy. If you have recently been thinking about this very thing then you will get to enjoy all of the benefits of being self employed like receiving all of the profits after your overheads and salaries have been paid, being able to decide the direction in which your business is going to go in and many others. You will get to decide what time you want to start work and when you want to finish and it is a great feeling to start out by yourself. There are however a number of different requirements that need to be followed in every country in order to conduct business there and so you need to make sure that you follow all of the rules and regulations.
Many governments encourage new business owners to register their business and while it is not a prerequisite, it does make sound business sense. Company registration in Cambodia is quite a straightforward procedure and it is something that can be completed for you by an external service provider. By not registering your business, you are definitely missing out on many opportunities to be gained from the government, your wholesalers and customers alike. If you’re still not sold on the idea of registering your company then maybe the following benefits can help you to make a smarter business decision.
- The hiring of employees – It is highly likely that you will want to hire employees to help you with your business endeavours and so you will be expected to pay salaries and take out the requisite deductions and other things. In order to do this you need to have an identification number that will allow you to pay these and you can only get this number when you register your company.
- Getting a business bank account – This is not easy or straightforward when you don’t have a company registration number and many parents will refuse to do business with you from the outset because you have not followed the necessary procedures. Your company must register with the Cambodian authorities so that you can open a business bank account that will allow you to separate your personal finances from it.
- Getting a business loan – Maybe you are using your own money to set up this new business but as your business continues to get stronger and becomes more successful then it’s likely that you may want to expand. In order for that to happen, you’re going to need some kind of business loan and so the bank will want you to prove that you are a legal entity. Your company registration number will assist you greatly with this.
- Dealing with wholesalers – Believe it or not but wholesalers and suppliers will be reluctant to do business with you because you are not a registered business. You will also not get to enjoy other additional benefits like promotions and special prices that will be offered by your wholesaler to its customers. There is a trust factor in any business situation and so by registering your business, your wholesaler knows that you are taking steps to comply with the rules and so they don’t have to worry about skipping out on your debt further down the line.
It is important that you get your new business off to a strong start and so making it a legal entity and paying all of the necessary taxes that are required, is a sound business decision. It not only protects you but it will protect your employees as well. Similarly the customers that you hope to sell your product or service to need to have a level of trust in your business as well, and they need to know that you are a legitimate business and will still be trading 12 months from now if they need to take advantage of the warranty or guarantee that is being offered on the goods that they are buying. It just makes sound business sense to register your company so that this is one more thing taken care of on your list of things to do, so you can get on with improving upon your business and making the necessary profits.
