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Trademark Registration Vs Company Registration
05 Feb, 2025
By Online Legal India
Published On 05 Feb 2025
Category Business
Trademarks are essential when opening a business or a startup. Consumers are exposed to trademarks always, serving as a badge for the goods and services so they can easily identify brands. A trademark gives the owner legal and legitimate rights and prevents others from copying or stealing trademark. Trademarks build brand recognition, customer loyalty, and credibility. They have a long-term value and can be renewed after 10 years from the day of registration.
When you are starting a new business, you must have thought about registering your company. It is one of the best ways to grow your company or business and make it successful. By registering your company under the Goods and Services Tax (GST), you can claim input tax credit on purchases, reducing your GST liability. This written piece will provide a summary of Trademark Registration VS Company Registration.
Company registration and Trademark registration differ in various ways. Company registration is focused on creating a legitimate body that will operate under a unique specific name and can be held liable for its behavior and actions. Trademark registration primarily focuses on protecting a business’s logo, slogan, and brand name, etc. from being stolen and used by other companies.
A trademark registration gives the owner full rights to use it with goods or services. Company registration grants some legal rights to the company, but it doesn’t provide any exclusive rights to act under a distinct name. The owner or individual can pursue legal fixes such as damages and injunctions if it is infringed upon.
Both trademark registration and company registration have different types of requirements in documents and information provided to complete the registration process. A company doesn't need to have trademark registration but it is highly recommended to protect a business’s intellectual property rights. Company registration is compulsory and very important for opening a business to obtain all the necessary permits and licenses to run.
Trademark registration is mostly valid within a geographical location like a region or a country (sometimes internationally). Company registration is only valid within the registered jurisdiction. Trademarks have a 10-year lifeline and need to be renewed after that, and company registration is valid as long as the company runs and its compliances are fulfilled.
Both the trademark registration and company registration costs vary from each other. Trademark registration involves government fees for the intellectual property office and paying attorney’s fees for any assistance needed in the application process. The cost can differ through various factors like logo, wordmark, and the class of goods and services.
Company registration includes paying government fees and filing articles of incorporation to the country’s registered business office. The cost can differ depending on the structure or type of business like LLC, corporation, and the country and state it is registered in.
Trademark Registration can be a hassle. Here’s a detailed step-by-step process for registering your Trademark.
Deep Database Search
You need to create a unique and interesting name for your brand and search the internet for more ideas. After picking a brand name, look for similar names so that you are not choosing a name from another brand. You mix words and invent a new name for your brand.
Go to the trademark portal and fill in your information with all the documents required, such as PAN card, Aadhaar card, Address proof, soft copy of trademark, signature of power of attorney, FORM TM-48, and related documents.
Examining Brand Name Application
After the application is filed, the trademark registrar will examine your form such as your brand name complying with the law. It should not be similar to any existing trademarks or the form will be rejected.
Publishing Brand Name in The Trademark Journal
The trademark registrar will publish the brand name in the trademark journal after the examination process. This is the most crucial part and there should be no opposition in the next 4 months. If there is no opposition, the issuance of a trademark certificate will be proceeded by the registrar.
Within those 4 months, if a third party is opposing the trademark publication in the trademark journal, the registrar will send you a notice copy of the opposition. The applicant has to appear for a hearing in front of the register to dissolve the opposition. If opposition is overruled, the applicant will get a certificate in a stipulated time.
Trademark Opposition Hearing
This step is only required when there is a third-party opposition. If your trademark has a third-party opposition, you will need to submit evidence to support your case. The hearing takes place after that and both the parties get the chance to prove their statements. The registrar will pass on the order of acceptance or rejection of the application.
Issuance of Trademark Registration Certificate
When your application is approved and passed after the hearing, the trademark will be registered. The applicant will receive the certificate with exclusive rights to the mark. You can use the ® symbol next to your brand name.
Different types of documents are needed for various businesses. The business location identifying documents, establishment document, etc. will remain common for all of the segments of businesses. The specific documents are mentioned here:
Individuals and Sole Proprietorships
Company
Partnership
Limited Liability Partnership
Trusts
There are various types of Trademarks, and here are a few of them:
A service mark is used to identify services. It helps build credibility and trust among consumers and is used among industries providing services. This helps differentiate them from other competitors.
A collective mark is used to present a collective and update the public on different features of a service or product. Individuals can use this mark to protect their goods and services.
A product mark is used to identify a product or good from other companies and competition. It helps customers identify the origin of a product and helps maintain the reputation of the company.
A certification mark is used to inform the public that the service or product meets the standards set by the lawful body. It is valuable for companies and businesses to meet high standards and make their products unique in the market.
A shape mark is used to protect a shape that represents a certain product from a brand so the consumer finds and buys the product. The product shape can only be registered once and needs to be something out of the ordinary.
A pattern mark has its own designed patterns that make it distinguishable from other products or brands. If the mark fails to stand out from other patterns, it is usually rejected as it does not serve the purpose.
A sound mark is used to protect certain sounds that are associated with a service or a product and should be directly linked to the source. Businesses and companies can increase their brand identity with unique sounds and create a good impression on consumers.
There are many types of company registration, and here are some of the most used types of registration:
It is one of the most popular types of company registration for business startups. It has a separate legal identity from the owners and can easily raise funds through equity shares and still maintain owner control.
Public Limited Company is for businesses that raise funds and capital from the public through share sales and stock exchange. It offers better access to the market and requires a compliance cost and a small investment.
It has the advantages of a traditional partnership with the benefits of limited liability protection. Limited liability partnership is fitting for small businesses as the owner wants to retain their flexibility in management and limit their liability.
This registration is best suited for a sole proprietor who wants to establish a corporate identity and enjoy limited liability protection. It allows individuals to start and run their businesses and become entrepreneurs.
When registering a company, some requirements need to be fulfilled. Here are the requirements (not limited to):
Discuss with your CA/CS to learn more about the required documents as per the type of the company you want to resister.
Every registration has a procedure to follow. Here’s how to register a company:
Step 1: Visit the MCA website and log in
Step 2: Access the application
Step 3: Fill in your details and upload the documents
Step 4: Pay the fees for the application
Step 5: Receive the certificate
It is essential to follow the guidelines when you are registering your company. It provides credibility, brand protection, access to funds, legal protection, and tax benefits. When you are starting a new business, you should consult with a legal counselor or professional to help you with the setting up of your business. Company registration is not needed for trademark registration. You can even register for a trademark as the sole owner without a registered business or company.
Visit Online Legal India for more information on Trademark Registration Vs Company Registration and consult with our expert CA/CS to get assistance in the registration process.
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