If you have a car, a flat, you always register it to make sure that it is your property. So why don’t we do the same when we have a company?
To inform a public body that you are the owner, and prevent another from using it, what you have to do is register it as a trademark, since the right to ownership of your trademark begins when you register it.
Consequences of not registering the brand of our company
The best way to understand why you should register your company as a trademark is to know the consequences of not doing so:
Competitors may appear who use identical or similar names to your brand to identify their products or services, thus causing consumer confusion, which can even affect your reputation if those of the competition is of inferior quality.
Another employer may register your trademark and prevent you from continuing to use it. What would it mean for your business? Surely economic and reputational losses, since you must start from scratch, even modifying the label of the establishment, the stationery, the announcements that are made.
And surely you think that it is something that never happens, but it does not, it is more
common than you think. Among partners who end their professional relationship occurs on many occasions, there is always the clever partner who, as the trademark has not been registered, decides to do so and continue with the business alone.
Benefits of registering our company as a trademark
Once you know the scares that the fact of not having your business brand registered can give you, we are going to give you even more reasons to register it, because if not registering it has consequences, they also get benefits if you do:
In accordance with the aforementioned, you can make exclusive use of the name, and therefore, prevent third parties from marketing identical or similar products with the same brand or using a brand so similar that it may create confusion.
With the help of company formation consultants in India, you are turning the business into an intangible value since it revalue it. This is because consumers value brands, their reputation, their image, and the set of qualities that they associate with the brand, and they are willing to pay more for a branded product that they recognize.
Internal regulation of the corporate governance of the legal entity.
Avoid the risks that may arise as a result of any disability or even death of the partners, since the company has an existence beyond the situation of the partners.
Greater control over the decisions made in the business. Having a company incorporated avoids the risk that some of the partners make unilateral decisions that affect the business.
Easy transfer of ownership. By consulting company formation consultants and forming a company, you can easily transfer your entire business unit by simply transferring your shares to the company.
A better exit from business strategy. When you want to go out of business, having a legal entity incorporated will make it easier for you to liquidate the company, dissolve it or if you prefer, sell it.
This content is meant for information only and should not be considered as an advice or legal opinion, or otherwise. AKGVG & Associates does not intend to advertise its services through this.
CS Neetu Saini
AKGVG & Associates