Gone are the days when people used to pay more attention to one’s work over the name as they felt it’s the work that would speak louder than words. But, with the change in time, there has been a growing emphasis on the name with a view to creating an identity. As a matter of fact, companies around the world are spending millions towards branding.
A brand is essentially a collective perception that visually connects with the logo, colour, and the appearance of a product. But, in essence, it delves into the mind space of the TG (Target Group). Hence, company name check has become an integral part of the branding exercise to avoid many issues later such as the name duplication and others. Besides, there are legal compulsions as well in this matter.
Key areas of company name check:
- Starting a business: When you are willing to start a new business, you aren’t by default sure about its name and the nature of the business that you intend to conduct. You may have the resources or simply some ideas to start a new business. Whatever you do here, company name check is the very first step before going further. In other words, starting a business requires checking the company name and its planned activities before the commencement of its operation. Else, you may be dragged into unwanted legal battles. The recent dispute between PayPal and Paytm is a vivid example here where PayPal had complained about the similar logo colour codes used by its Indian rival Paytm.
- Registration: Registration of a business is necessary as per the prevalent laws of the country. Having said that, we mean a business based on its scale of operation and the capital investment is required to be registered under the societies act such as the co-operative society or the company act. After all, a business is a legal entity separate from its owner. Therefore, registration of a business is a must. At the same time, registration of a business under several heads like professional tax, ESI, service tax etc. are mandatory. Those are considered a part of a company’s name and individual existence and also serves the purpose of statutory compliance such as income tax filing, sales tax return submission etc.
- Intellectual property protection: Unless your business has a unique name vis-a-vis its activities, you can’t protect your intellectual property rights. At the same time, you may find yourself into legal complications as mentioned earlier in the case of PayPal and Paytm.
- Funding and listing: For the purpose of funding and listing of your business with the bourses around the world, you are to create an individual name and identity for your business that stands out in the crowd.
- Legal documentation: With the increase in business volume, you would need to form a company. There, you have to create legal documents such as the Articles of Association, Memorandum of Association, and the partnership deeds as the case may be. In all such cases, unique company name becomes indispensable.
In short, the company name check before the commencement of a business operation is, therefore, extremely important.