There are a few important benefits
you should be aware of
- A registered company has more credibility. Having a business that’s not registered is a signal to potential customers and partners that you’re not serious. A registered company is an entry-level commitment and sign that you’re not just a fly by night operation or shadow business as so many in Zimbabwe have become.
- Big opportunities often require registration papers. Big government tenders and dealing with many big companies will often demand that you are able to produce your papers in one form or another. You may be capable of doing the job perfectly and at the best price, but you could lose the opportunity if you’re not registered.
- No registration papers? No corporate bank account. Again, if you’re dealing with larger amounts, most corporates will not pay you in cash. In fact, some investors or securities will not even consider you without looking at your banking history. You cannot get a corporate bank account without being a registered business. If you’ve been keeping your cash under the mattress, isn’t it time for the next level?
- If you’re building a real business, You MUST be registered. There are things you do to make a quick buck here and there, then there are things you do for the long-term – like your dream business or a business you hope to sell for massive profit one day. If your company is not registered, you will be disadvantaged and even hinder your growth.
- Registration proves you exist! This is important for Tax related issues and VAT. It’ll also prove important should you end up in court to defend you rights in some matter.
- Registration helps to protect your brand. You could invest significantly into building a name and reputation, only to watch someone else legally enjoy all the benefits because they’ve started a competing business and they own your name! Not much you can do to stop them!
In
Zimbabwe there are two ways register your Company Name
- Buy a ‘shelf company’
- Register a business from scratch.
A shelf company is a business that for the most part has already been
registered. Supposedly all you have to do is buy it, change the directors’
names and you’re done. It’s supposed to be faster and easier in every way. Truth
is though, it’s NOT. These days it’ll take about the same amount of time and in
some cases much longer to go the shelf company route. It’s also not really any
cheaper (Except in some artificial pricing scenarios by some consultants).
More than all that though it will
almost always hurt you in the long run. The silly sounding, nonsensical names
often used will make your marketing both more difficult and expensive. The
consultants who sell them won’t tell you this, most don’t know and the rest
just don’t care. My recommendation? DO NOT BUY A SHELF COMPANY!
Registering from the start is the second and by far the best option. It allows you the
most flexibility and branding power later. You’ll need to come up with at least
4 or 5 possible names for your name search.
How
to Name Your Business
Don’t try to win any creativity awards. This is more science than art so don’t waste days or
weeks trying to find the perfect name.
Keep it simple. You name should be easy to pronounce and spell. No silent letters or out of the ordinary punctuation marks
Tie your name to your line of business. I should be able to look at your name and without any help, at least have a clue about what you do. Think ‘Chicken Inn’, ‘Securico’, ‘Floorcare’, ‘Agri-Bank’. Sure, you could use a name like Coca-Cola, Kodak or Apple…but be prepared to spend a massive amount of money on branding to help us associate that name with your line of business in the mind of your market.
Make it as unique as possible. I’m talking about unique in your industry or domain, not in the world. Unless you’re using words and sounds or geographic qualifiers like (Zimtech, Zimsun or Zimnat) coming up with a completely original name may be difficult. I’d recommend going for a name that’s unique in your industry. If you understand SEO, then you may also want to see what implications that name could have from that perspective.
Finally, submit your names in order of priority. When you submit your list of names to be registered, you’ll need a CR 21 form, unless you are registering a Private Business Corporation (PBC). Whether you do it with the Business Setup Group or whoever, please remember to write them in order of preference. That way, if you don’t get your most wanted name, the company registrar’s office knows which one on your list you’d next prefer.
Keep it simple. You name should be easy to pronounce and spell. No silent letters or out of the ordinary punctuation marks
Tie your name to your line of business. I should be able to look at your name and without any help, at least have a clue about what you do. Think ‘Chicken Inn’, ‘Securico’, ‘Floorcare’, ‘Agri-Bank’. Sure, you could use a name like Coca-Cola, Kodak or Apple…but be prepared to spend a massive amount of money on branding to help us associate that name with your line of business in the mind of your market.
Make it as unique as possible. I’m talking about unique in your industry or domain, not in the world. Unless you’re using words and sounds or geographic qualifiers like (Zimtech, Zimsun or Zimnat) coming up with a completely original name may be difficult. I’d recommend going for a name that’s unique in your industry. If you understand SEO, then you may also want to see what implications that name could have from that perspective.
Finally, submit your names in order of priority. When you submit your list of names to be registered, you’ll need a CR 21 form, unless you are registering a Private Business Corporation (PBC). Whether you do it with the Business Setup Group or whoever, please remember to write them in order of preference. That way, if you don’t get your most wanted name, the company registrar’s office knows which one on your list you’d next prefer.
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