In a recent call to action, the Registrar of Companies, Jemima Oware, has underscored the critical importance of formalizing entrepreneurial ventures.
With a focus on ensuring legality over patents, trademarks, and copyrights, Madam Oware emphasizes the necessity for entrepreneurs to legitimize their business ideas through proper registration channels.
Madam Oware’s message resonates with aspiring entrepreneurs as well as seasoned business owners, as she highlights that formalization doesn’t always entail the establishment of a registered company, which often involves cumbersome administrative tasks such as filing annual returns and paying taxes. Instead, she encourages entrepreneurs to explore available provisions tailored for smaller entities, enabling them to legitimize their ventures without unnecessary bureaucratic hurdles.
“Company registration comes in two folds – limited and unlimited liability types for profit-making types and the limited by guarantee which is non-profit type. So, entrepreneurs can start small with just business name, subsidiary business name or partnership and later grow into a company.”
Jemima Oware
Madam Oware also disclosed that a rising trend in the number of small businesses operating without proper registration or licensing. “While some business owners may consider these practices as a means to cut costs or avoid bureaucracy, there are various downsides associated with such approaches,” she noted.
Meanwhile, the significance of formalizing business entities cannot be overstated. Madam Oware explained that by doing so, entrepreneurs gain access to a myriad of benefits and opportunities that would otherwise remain out of reach.
Consequences of Unregistered Businesses
Unregistered businesses not only risk legal consequences in case of litigation, but also limit their growth potential and access to important resources.
“Formalising a business entity offers numerous advantages that entrepreneurs cannot afford to overlook. By registering their business, entrepreneurs gain legal protection, credibility and increased access to financial resources. A registered business is more likely to secure favourable partnerships and attract investors, leading to enhanced growth prospects.
“Furthermore, registering a business allows entrepreneurs to operate and engage with clients in a compliant manner, ensuring the trust and confidence of customers. It also allows businesses to access various government programmes, grants and incentives that can contribute to their success.”
Jemima Oware
Madam Oware made these remarks at the launch of the Wealth and Jobs Expo 2024, in Accra. An event aimed at bringing policy-makers, entrepreneurs, unemployed graduates and the business community as well as investors together to deliberate on creating job for the teaming youth.
Madam Oware assured stakeholders that the Office of the Registrar of Companies is committed to assisting entrepreneurs in navigating the complex process of formalising their operations. The office provides comprehensive services, including name registration, licensing, taxation registration and more.
With the registrar’s support, entrepreneurs can rest assured that they are adhering to all legal requirements and positioning their businesses for long-term success. Additionally, she indicated that business registration processes have been digitalised for easy accessibility and convenience.
However, the extensive expertise and experience in business registration possessed by the team members are readily available to ensure a seamless and stress-free process. From the initial documentation to the final approvals, the company is committed to streamlining the registration procedure and offering timely support to entrepreneurs throughout.
The registrar emphatically urged them to recognize the enduring advantages of operating within the bounds of the law by guaranteeing the authenticity of their endeavors.
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