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Trademark Registration vs Company Registration


Trademark Registration vs Company Registration

Trademark Registration

Trademark Registration is an intellectual property registration under the Trademark Act of India. Trademark registration provides ownership of intellectual property, rights to exclusive use of the registered trademark and legal protection in case of trademark infringement. Words, slogans, business names, numerals and more can be trademark registered. The trademark registration process typically takes more than 12 months. However, once a trademark registration application is filed with the Trademark Registrar, the TM symbol can be placed next to the logo or business name to put others on notice that a trademark application has already been filed.

ADVANTAGES OF TRADEMARK REGISTRATION

  • Trademark registration primarily helps to build and retain loyal customer base while deterring competitors from using similar names or selling their products or services using your name.
  • It also prevents any confusion clearly identifying from which business house a product or service originates.
  • A trademark registration, in essence, protects the goodwill earned by your business.
  • A registered trademark proprietor of a business has the right to sue against any person or legal entity for any infringement and obtain an injunction to cease from any such infringement and also pay financial compensation in the form of damages or on the account of profits made.
  • A Trademark is the intellectual property of a business needs to be cautiously protected with proper registration as this will be needed in the future if you plan to franchise the brand or enter into any commercial business arrangement based on the strength of your brand.
  • DISADVANTAGES OF NOT REGISTERING A TRADEMARK

    Any business that has not registered its trademark will not be able to avail of the statutory protection under the Trademark Act.

    PERIOD OF VALIDITY OF A REGISTERED TRADEMARK

    A trademark registration is initially valid for ten years and thereafter subsequent renewal will further extend the trademark protection for another period of ten years.

    TRADEMARK REGISTRATION PROCEDURE

  • Trademark search.
  • Discussion on class.
  • Pre-draft on TM-A.
  • Final application.
  • Regular updates.
  • DOCUMENTS REQUIRED FOR TRADEMARK REGISTRATION

  • Applicant’s Name.
  • Type of business.
  • Objective of the business.
  • Brand/Logo/Slogan.
  • Registration Address.
  • Identity Proof of the trademark owner or the person who is authorised by the trademark.
  • ® SYMBOL

    Upon registration of your trademark, you will be allowed to use the R symbol to denote that the trademark has been registered and enjoys protection under the Trademark laws of India.

    TM SYMBOL

    The TM symbol is generally used to indicate that there has been a trademark application filed and pending before the Trademark registry and serves as a warning to infringers.

    Company Registration

    Company registration or LLP Registration is the creation of a separate legal entity or an artificial judicial person. Company registration under the Companies Act 2013 or LLP registration under the LLP Act 2008 creates a business entity that is capable of entering into business transactions and ownership of property. Two people are usually required for company or LLP registration in India and the registration can be completed within 20 working days. Once, a company is registered, a Certificate of Incorporation will be issued and the same can be used for opening bank account or other obtaining other registrations like TIN Registration, Service Tax Registration, etc.,

    1. One Person Company (OPC)

    Recently introduced in the year 2013, an OPC is the best way to start a company if there exists only one promoter or owner. It enables a sole-proprietor to carry on his work and still be part of the corporate framework.

    2. Limited Liability Partnership (LLP)

    A separate legal entity, in an LLP the liabilities of partners are only limited only to their agreed contribution.

    3. Private Limited Company (PLC)

    A company in the eyes of the law is regarded as a separate legal entity from its founders It has shareholders (stakeholders) and directors (company officers). Each individual is regarded as an employee of the company.

    4. Public Limited Company (PLC)

    A PLC is a voluntary association of members which is incorporated under company law. It has a separate legal existence and the liability of its members are limited to shares they hold. You can choose what business structure suits your business needs best and accordingly register your business.

    Here is a comparative list of the popular business structures in India.

    Why is it important to choose the right business structure?

    It is important to choose your business structure carefully as your Income Tax Returns will depend on it. While registering your enterprise, remember that each business structure has different levels of compliances that need to be met with. For example, a sole proprietor has to file only an income tax return. However, a company has to file an income tax return as well as annual returns with the registrar of companies.

    How to choose a business structure while applying for company registration in India?

    Let’s take a look at some important questions every entrepreneur must ask himself before he/she finally decide upon a business structure.

    i. How many owners/partners will your business have?

    If you are a single person who owns the entire initial investment required for the business, a One Person Company would be ideal for you. On the other hand, if your business has two or more owners and is actively seeking investment from other parties a Limited Liability Partnership (LLP) or Private Limited Company would suit you best.

    ii. Should your initial investment determine your choice of business structure?

    The answer to that question is – Yes if you want to spend less initially, it would be wise to go in for a Sole Proprietor, or a HUF or a Partnership. But, if you are sure that you will be able to recover the setup and compliance costs, you can opt for a One Person Company, LLP or a Private Limited Company

    iii. Willingness to bear the entire liability of the business

    Business structures like sole proprietor, HUF, and partnership firm have unlimited liability. This means, in case of any default in loans, the entire money will be recovered from the members or partners in profit sharing ratio. The risk to personal assets is high in these cases.

    Whereas, Companies and LLPs have a limited liability clause. This means that the liability of its members is restricted to the amount of contribution made by them or the value of shares each member holds.

    iv. Income Tax Rates Applicable to businesses

    The income tax rates applicable to a sole proprietorship and a HUF are the normal slab rates. In case of a sole proprietorship, the business income is clubbed with the individual’s other income. But in the case of other entities like partnership and company a tax rate of 30% is applicable.

    v. Plans of getting money from investors

    As mentioned earlier, it is difficult to get investments when your business structure is unregistered. Entities like LLP and Private Limited Company are trusted when it comes to investment. Make sure you choose the right structure, seek the help of an expert so that you register under proper guidance.

    4. How to Register a Company in India?

    Registering a company in India is now a simple 4-step process. Here is what you’ll need to acquire:

  • A Digital Signature Certificate(DSC)
  • A Director Identification Number (DIN)
  • Registration on the MCA Portal or New user registration
  • Certificate of Incorporation
  • With this, we have covered the basics of how to register a company. If you still need help registering your company, don’t stress over it, and let our team of experts guide you.


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