If you are planning to start a business in India, one of the
first steps you need to take is to register your business name. A business name
is the identity of your company, and it should be unique, catchy, and relevant
to your products or services. A registered business name also gives you legal
protection and credibility in the market.
In this blog post, we will explain the process of
registering a business name in India and the benefits of doing so.
What is Business Name Registration?
Business name registration is the process of registering
your company name to your state or country for it to be included on their
business name registry. It is also known as company name registration or
business registration. Business name registration is different from brand name
registration, which is done through trademark registration and protects your
branding from being misused by others. Business name registration is important
for legal and tax purposes, as well as for creating a professional and
memorable identity for your business. Business name registration may have
different requirements and procedures depending on the type of business entity
you choose such as sole proprietorship, partnership, corporation, or limited
liability company. Therefore, it is advisable to consult with experts or do
some research before registering your business name.
Differentiate between Business Name Registration and Brand
Name Registration
Business name registration and brand name registration are
different processes for registering a business entity and its products or
services. Below are the differences of Business Name Registration and Brand
Name Registration:
Business name registration:
- Registers the legal name of the entity that conducts
business operations, such as tax filing, bank accounts, contracts, etc.
- Is mandatory for all types of business entities, such as
sole proprietorship, partnership, company, LLP, etc.
- Is done through the Ministry of Corporate Affairs (MCA) in
India and requires compliance with certain rules and regulations.
- Only allows text names and does not include any graphical
elements.
- Grants a separate PAN card for the business entity.
Brand name registration:
- Registers the name, logo, slogan, or any other distinctive
feature that identifies the products or services of a business in the market.
- Is optional but highly recommended for all businesses that
want to create a unique identity and reputation in the market.
- Is done through the Intellectual Property Department of
India and requires an application with the relevant details and fees.
- Allows both text and graphical elements and can be
registered in different classes of goods or services.
- Grants a trademark certificate that is valid for 10 years
and can be renewed.
What are the advantages of registering a company name in
India?
Registering a business name in India has several advantages,
such as:
- It helps you establish your brand and reputation in the
market.
- It prevents others from using the same or similar name for
their businesses and causing confusion among customers.
- It enables you to open a bank account, obtain licenses,
permits and tax registrations for your business.
- It allows you to protect your intellectual property rights
such as trademarks, logos, and domain names.
What are the different forms of business entities in India?
Before you register your business name, you need to decide
what type of business entity you want to form. In India, several forms of
business entities exist, such as:
- One Person Company (OPC): This is a new type of entity
introduced in 2013 that allows a single person to start and run a company with
limited liability.
- Limited Liability Partnership (LLP): A hybrid entity that
combines the characteristics of a partnership and a company. It has two or more
partners who share the profits and losses of the business and have limited
liability for the debts of the LLP.
- Private Limited Company (PLC): This is the most popular type
of entity for startups and small businesses. It has two or more shareholders
who own the shares of the company and have limited liability for its debts. It
also has one or more directors who manage the affairs of the company.
- Public Limited Company: This is the type of entity that can
raise funds from the public by issuing shares. It has at least seven
shareholders and three directors who have limited liability for its debts.
- Sole Proprietorship: This is the simplest and oldest form of
business entity that can be set up by a single person who owns and runs the
entire business. The owner is liable for all the profits and losses of the
business and has no separate legal identity from the business.
- Partnership: This is a type of business entity where two or
more people agree to share the ownership and management of a business. The
partners are jointly and severally liable for the debts and obligations of the
partnership and have no separate legal identity from the partnership.
How to register a business name in India?
The process of registering a business name in India varies
depending on the type of entity you choose. However, the following are the
general steps:
- Choose a suitable and unique name that indicates the main
objects of your company.
- Check that no other business is using the same or similar
name on the web portal of Ministry of Corporate Affairs (MCA) (Check Company
Name) and Intellectual Property Department’s website (IPIndia public search).
- File an application to reserve your chosen name with the
Registrar of Companies (ROC) through SPICe+ program and pay the government
fees.
- Once your name is approved by the ROC, file an application
for incorporation of your company along with the required documents and fees
through SPICe+ program.
- After your company is incorporated, you will receive a
certificate of incorporation along with a unique company identification number
(CIN).
Conclusion
Registering a business name in India is an important step
for starting a successful venture. It helps you create a distinct identity for
your company and protect it from potential legal issues. You should choose a
suitable type of entity for your business and follow the steps mentioned above
to register your business name in India.
