Registration of a business as a Private Limited Company offers a number of benefits that ensure growth, legal protection, and credibility in business. The following are the reasons why registering as a Private Limited Company is important:

Protection from Liability:
As a Private Limited Company, the owners, or shareholders, have limited liability, meaning their personal assets are protected from business debts and legal claims. This is very important in protecting the financial interests of the business owners.

Legal Entity Separate from Owners:
A Private Limited Company is considered a separate legal entity from its owners. It can own property, sign contracts, and conduct operations on its own, independent of its shareholders.

Easier Access to Funding:
Private Limited Companies enjoy easier access to financial institutions, venture capitalists, and angel investors. It becomes easier to raise funds for the business compared to a sole proprietorship or a partnership.

Increased Credibility:
Registration as a Private Limited Company gives a business more credibility with the investor, customer, and supplier. It makes your business look more professional, trustworthy, and reliable.

Tax Advantages:
Private Limited Companies obtain tax advantages and are treated under corporate tax rates which are, most times, rather more advantageous compared to single proprietorship or partnership taxpayers.

Transfer of Ownership: The ownership of a Private Limited Company is easily sold through shares. This would be very attractive for growing businesses looking for mergers or seeking to attract some new investors into the businesses.

Continuing Succession :
A Private Limited Company has perpetual succession, meaning the company continues to exist even if a shareholder or director leaves or passes away. This provides continuity for the business.