Trademark

What is the Difference Between Trademark Registration and Company Registration?

calendar22 Feb, 2023
timeReading Time: 5 Minutes
What is the Difference Between Trademark Registration and Company Registration?

Any business that wishes to function legally and be recognized as a legal entity must first register officially. It entails registering a business with the relevant government body, acquiring the required licenses and permits, and adhering to specific legal criteria. Businesses can benefit much from legal registration, including limited liability protection, intellectual property protection, and access to legal remedies. Moreover, it enables companies to sign contracts, draw in investors, and build credit with financial institutions. Also, formal registration guarantees adherence to all applicable laws, including those governing labour, taxes and environmental laws. Penalties, fines or even business closure can be imposed for breaking these laws. Ensuring a business is legally recognized, protected, and in conformity with numerous laws and regulations is crucial for its long-term success and survival. For this reason, registration, in general, is necessary for businesses. In this blog, we are going to discuss about Trademark Registration and Company Registration.

What is Trademark Registration and Company Registration?

Let’s discuss the meaning features of Trademark Registration and Company Registration:

Company Registration

The legal process of creating a corporate business as a separate and distinct legal entity from its owners is known as company registration. In the majority of countries, operating lawfully is a prerequisite for any corporation or business. A company owner or entrepreneur must submit the proper paperwork and information to the government or the appropriate authorities during the registration procedures. In these documents, the company name, address, shareholders, directors, and type of business are normally listed.

A business receives a special registration number after successfully registering, which is evidence of the entity’s existence and legal standing. The protection of personal assets, the capacity to generate money, and the availability of legal protection are only a few advantages of company registration. A business’s legitimacy and reputation are improved by registering, which can result in more loyal and trusting customers. In general, registering a business is an essential first step in starting a business, and business owners should seek the advice of professionals to guarantee compliance with all legal requirements.

  • Features of Company Registration
    • Legal Recognition: The registration of a company grants the company legal status and establishes it as a separate legal person from its owners. This helps in protecting the owner’s personal assets in the event of any legal responsibility.
    • Perpetual Existence: A registered company has an everlasting existence, which means it can survive the passing of its owners or shareholders as well as their retirement or resignation.
    • Credibility and Brand Image: A registered company gives the business a credible, professional image that can draw in investors, clients and suppliers.
    • Tax Benefits: A registered company is entitled to a number of tax benefits, including tax deductions, exemptions, and refunds, which can assist in reducing the company’s overall tax burden.
    • Better Corporate Governance: A company registration helps in establishing a transparent and open administrative structure for the business, which leads to better corporate governance and accountability. 
    • Transparency: A registered company must keep accurate books of accounts and submit annual reports in order to preserve accountability and transparency in its business practices.
    • Transferable Shares: A registered company’s shares are freely transferable, making it simple to sell or transfer ownership of the business.
    • Access to Funding: A registered company has access to several funding options, including bank loans, venture capital etc., which can support the growth and expansion of the company.
    • Increased Market Share: In order to increase earnings and achieve long-term sustainable growth, a registered company can expand its market share and establish itself as the industry leader.

Trademark Registration

The legal process of obtaining the right to use a specific brand name, logo or symbol in connection with particular products or services is known as trademark registration. By registering your trademark, businesses can legally forbid others from using it in connection with the same products or services. In order to register a trademark, one must generally do a thorough search to make sure the mark is not already being used by another party, submit an application to the relevant government body, and provide proof of actual use or intent to use the mark.

Once registered, a trademark can be used to build brand recognition, prevent competitors from using similar marks, and protect the business’s intellectual property. For companies of all sizes, trademark registration is a crucial first step since it gives their brand legal protection and promotes trust and validity in the marketplace.

  • Features of Trademark Registration
    • Exclusive rights: When a trademark is registered, the owner is given the only right to sue the mark in connection with the products or services covered by the registration.
    • Legal protection: Legal protection against trademark infringement or illegal use by third parties is provided by trademark registration.
    • National protection: The owner has the sole to use the mark throughout the nation, due to which national protection is provided by trademark registration.
    • Brand recognition: Customers and consumers are helped to recognize and be aware of brands via trademark registration.
    • Business expansion: By protecting the mark in new markets and regions, trademark registration aids in business expansion.
    • Competitive Advantage: The Company gains a competitive edge through trademark registration, which aids in differentiating it from rivals in the markets.
    • Legal Remedies: Legal remedies such as injunctions, damages and accounting of profits are made available by registration of the trademark and can be utilized to uphold the rights of the owner and defend the mark against infringement. 
    • Asset Creation: By registering a trademark, a company can establish an intangible asset that can be licensed, franchised, or sold to earn money.
    • Renewal: A registered trademark has a set lifespan, often ten years, and is renewable forever.

Difference between Trademark Registration And Company Registration

Check the difference between Trademark Registration and Company Registrations below:

  • Purpose:

The process of registering a brand name, logo or other sort of distinctive symbol or design that stands for particular products or services is known as trademark registration. While the procedure of registering a corporate entity with the government, on the other hand, allows it to receive legal status and protection.

  • Legal Protection: 

A business’s intellectual property[1] is legally protected by a trademark. This makes sure that no other company or product can use the same or similar name, logo or symbol. On the hand, company registration offers the business entity itself legal protection. It guarantees that the company is legally distinct from its owners and that both the company’s assets and liabilities are distinct from those of the owners.

  • Application process:

An application must be submitted to the appropriate government agency (Trademark registry) in order to register a trademark, and that authority (Registrar) will review the application to ensure it complies with all applicable laws. The trademark is registered, and the owner can use the trademark sign ® if the application is accepted. The process of establishing a company entails registering the corporate entity with the appropriate government agency, which includes submitting the requisite paperwork and paying associated costs.

  • Duration

A trademark registration will be in effect if the owner uses the trademark and pays the required renewal costs. The company registration does not have any specific duration and also does not need any renewal. The company exists till the owner/partners don’t end it.

  • Scope:

A trademark registration gives protection particularly to trademark only; no other thing is protected other than a trademark. When a company is registered, it offers overall legal protection to the business entity, independent of the goods or services provided. 

Conclusion 

In conclusion, while both trademark registration and company registration are critical legal processes for businesses, they have different purposes, provide different types of legal protection, and have different application processes and durations and other different benefits. Firms must be aware of these distinctions to protect their intellectual property and corporate identity and ensure the relevant registration procedure has been followed.

Also Read:
Online Trademark Registration: A Detailed Guide
How To Avail A Company Registration Certificate?
Know The Procedures To Cancel Company Registration Under Companies Act, 2013

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