A business, any running business is a fragile thing. Anyone who knows anything can tell you that the devil truly always is in the details. A business, no matter how sturdy it may seem, can fall like a stack of badly arranged cards if some of the fundamental requirements are not met.
One of the most important requirements for any business is that’s it is certified with the relevant authorities before it begins to operate. This serves several important purposes. Depending on the nature of the venture, the relevant registration processes and documents differ. A simple example is a cyber cafe and a small restaurant. Though they may be run on the same premises and even be similar in size, the city council has different expectations from them. Places dealing with food tend to face longer and more detailed processes because of the sensitive nature of their end product.
One of the important uses of paying dues to the government is in a way to pay for the environment which allows the business to exist. It may not seem that important but the peace and stability that enables businesses to thrive has a certain cost that it takes to maintain. Paying the necessary fees enables continuity of this environment. Another reason why it is important is because the law has certain provisions and standards which businesses must adhere to and requiring certification is the way in which the government ensures that these standards are met.
Sometimes, businesses are set up and continue running without written agreements. I discovered the hard way that not all people are as honorable as they would like you to believe. Very few people actually keep their word and thus it is smart as an entrepreneur to make use of legally binding documents in order to protect your investment and to define the terms under which the business exists. Legal documents protect the business from liabilities and enable discussions in case of disagreements.
Any viable business has a high chance of success. These chances are improved greatly if the necessary building blocks are in place.