A Sole Proprietorship (also known as a sole trader or simply a proprietorship) is a type of business entity that is usually owned and operated by one person.
This type of business does not enjoy the benefits of limited liability and there is no legal distinction between the owner and the business. In the eyes of the law, the owner and the business are one and the same.
Sole proprietorships are the simplest of all business entities. They are cheap and easy to set up and require little capital.

42% of Kenyan citizens are in the informal sector. This is a record and rapid growth in the last 15 years with an increase of over 25,000 individuals who open up their hustles in a month’s record. Of which 75% fail within 8 months. We all want to be self-employed in order to maximise our input and output respectively. It is very important to optimise our energy and put our potential into our ventures.
Here are a few tips of ensuring optimal income/output from minimum input: BUSINESS REGISTRATION
IMPORTANCE OF BUSINESS REGISTRATION
1. CAPITAL-It’s easier to get bank credit and investment from investors- (Getting Loans). For banks, there are basically two categories of loans; Personal and Business loans. They’re both totally different and one cannot be used to represent the other.
As a result, most banks will gladly lend you money to buy a new car or house but none will give you money to fund a business that isn’t registered. To qualify for a business loan, the Number 1 and non-negotiable requirement is that your business must be registered. Period!
For investors, it’s the same thing. Investors are interested in giving you money for a share of your business, and not to finance your personal lifestyle.
If there’s no registered business, what exactly will you be giving them a share of?
Investors want to know that your business is organized, exists legally and is separate from your personal life and finances.
No investor would take you seriously if you’re asking for investment but you don’t already have your business registered. To them, it’s a sign of unseriousness and a lack of professionalism. You don’t want anybody to have that impression of you.
When you apply for small business loans, you’re going to have to prove that you’re actually a business. Lenders and investors will ask to see your business registration along with other application requirements before approving you for a loan. If you apply for a credit card as a business, creditors may also ask to see your registration paperwork.

2. PROFESSIONALISM AND TRUST- It makes you look serious and attracts more customers. In today’s modern world, most customers, especially corporate customers, expect a serious and responsible business to be registered. In fact, most companies will not do business with an unregistered business.
And who exactly pays for something these days without demanding a receipt? Unless your plan for your business is to become and remain a petty trading business that sells stuff off street corners, you just have to register it to attract more discerning customers.
Nobody says you can’t survive with a business that isn’t registered. The likely outcome is that you may not grow and will probably remain small for a long time.

3. BUSINESS CONTRACTS / SUPPLIER ARRANGEMENTS. A registered business also makes you eligible to receive supplier discounts that you wouldn’t normally receive as an unregistered operation. Suppliers commonly reserve wholesale rates for business owners who can show official paperwork from the state. Also, if you plan to try to get government contracts for your company, a business registration is one of the first requirements.

4. It gives you a unique identity (and protects it too). There is a certain pride that comes with the identity of your own business. It’s no longer that big idea you’ve had in your head all these years. It’s now a real thing that legally exists; with its own name and address. Once you’re ready to register your business, the first thing the Business Registration Office does is to check that no other business already exists with the same name. Under law, no two businesses should have the same name to avoid confusing the public. This search could take a few minutes or several days. Once it is confirmed that the name you’ve chosen for your dream business is available (that is, nobody else is already using it), you will be allowed to go ahead with the rest of the business registration processes.
5. GROWTH MONITORING- Ensures continuity.
Nestlé, Cadbury, Shell and Toyota. Do these names ring a bell?
Of course they do.
These names are big multi-billion dollar businesses that have existed for decades. In fact, most of the people who formed these companies have been dead for a long time.
Nevertheless, these businesses, which were quite small when they started many years ago, remain very big and successful today.
It’s called continuity; human beings live and die but businesses have the ability to last forever as they are transferred from one generation to another.
In Africa, it’s hard to come across businesses that outlast their founders. Just a few have.
A registered business is an asset (like a house, car and other properties) that can be passed down (as an inheritance) or sold by its owners to a new generation of people who can continue to own and run the business.
Registering your business will help you achieve your dreams of continuity!

Now you know the reasons why you should register your business. It’s time to do the right thing!

Contact us on 0711 777 025
Email us- info@havengoldconsultants.co.ke
Visit our website www.havengoldconsultants.co.ke
For Company registration/ Business Name Registration