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Home / Insights / Why is registering a company really important?
Business Advisory 28 June 2023 2 min read

Why is registering a company really important?

M&J Consultants M&J Consultants
Why is registering a company really important?

Beauty was an aspiring entrepreneur in Lusaka Zambia who wanted to start her own online clothing store. She had a passion for fashion and a knack for finding trendy and affordable outfits. She decided to name her store Beauty’s Closet and set up a website to showcase her products.

However, she soon realized that she could not get bigger deals with companies if she was not registered as they required company papers and tax for them to even pay her. Beauty decided to just stick to the individuals who bought with cash, but 5 years down the line she discovered that her business was still on the same spot.

She was frustrated as when she really looked at it she was never short of customers and she was very reputable. She then decided to really find out why she was not growing much. To her surprise in the 5 years that she has been operating she had encountered 16 big orders that just remained quotations. When she dug deeper that is when she realized that these big orders were companies but they could not take clothes from her because she was not registered. She realized a bit too late that the deals were worth more than 2 million usd, in which this really crushed her such that when she finished reading her sales reports she was reduced to tears.

Beauty vowed there and then that she would register her company once she has some free time. 6 months later, she still had not managed to find the time to register her company due to lack of time. By this time she was always having migraines due to the stress of losing so much money.

One day she googled on How to register a company in Zambia and found out that there was a sales agent that was quick to respond on zambia registrations company and 10 minutes later she had managed to finish the whole process in which she paid very little

Three days down, she was thrilled to see her company name on the official document. She felt like she had taken a big step towards achieving her dream. She updated her website with her new company details and started to market her store to potential customers.

She soon received her first order from a customer in France. She was overjoyed and quickly shipped the product to the customer. She received positive feedback and a five-star rating from the customer. She felt like she had made the right decision by registering her company.

Imagine if Beauty had done the registration process earlier, how many clients do you think she would have closed?

														![](https://mjconsultants.co.zm/wp-content/uploads/2023/06/aBC.jpeg)

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