(Pty) Ltd Company Registration provides many advantages. One, it protects your personal life and assets from those of the business. It is necessary to operate in a safe legal structure where business assets and risks are separate from personal ones.
A registration helps limit your personal liability. In the eyes of South African law, a private company is considered a separate legal entity. Unless you act recklessly or unlawfully, you will not be held personally accountable when things go wrong with your business.
You look more professional when you operate under a registered business name. If you want a big contract or tender, you look less professional if you trade in your own name.