When starting a new business, most entrepreneurs spend a lot of time picking the right name. But many startups wrongly believe that registering a business name with the government automatically gives them legal rights to use and protect that name as a trademark. This confusion often leads to legal trouble, rebranding costs, and losing the name they worked hard to create. In this article, we’ll explain the difference between a business name and a trademark, the laws that apply to each, and the steps every startup should take to protect their brand properly from the beginning.

In this article, CA Manish Mishra talks about Trademark vs Business Name: What Startups Often Get Wrong.

What Is a Business Name?

A business name is the legal identity of an entity registered with the Ministry of Corporate Affairs (MCA). It is the official name used in company incorporation, banking, taxation, and statutory filings.

Under Section 4 of the Companies Act, 2013, an entity whether a Private Limited Company, One Person Company (OPC), or Limited Liability Partnership (LLP) must apply to the Registrar of Companies (RoC) for name approval before incorporation. The Central Registration Centre (CRC) ensures that the proposed name is:

• Not identical or too similar to an existing company or LLP (Section 4(2)(a)),

• Not offensive or prohibited by law (Section 4(2)(b)),

• Not misleading as to the nature or extent of the company’s activities (Rule 8 of Companies (Incorporation) Rules, 2014).

While business name registration under the Companies Act prevents another company from registering with the same or similar name, it does not give exclusive rights for branding, promotion, or commercial use in trade.

What Is a Trademark?

A trademark is an intellectual property right governed by the Trade Marks Act, 1999. As defined under Section 2(1)(zb), a trademark is:

“A mark capable of being represented graphically and capable of distinguishing the goods or services of one person from those of others.”

This includes names, words, logos, slogans, sounds, shapes, colors, or combinations thereof. Registration of a trademark is done with the Office of the Controller General of Patents, Designs and Trademarks (CGPDTM), and once granted, it provides the exclusive right to use that mark in commerce for specific goods/services under specified classes (as per the Nice Classification system).

Core Differences: Business Name vs Trademark

Legal Consequences of Confusing the Two

Lack of Brand Protection

Startups often assume that registering a company like GreenTech Solutions Private Limited gives them exclusive rights to use the name "GreenTech." However, if "GreenTech" is already a registered trademark in Class 42 (Technology services), the startup may face legal opposition under Section 21 of the Trade Marks Act or even infringement proceedings under Section 29.

Loss of Market Reputation

Without trademark registration, competitors can mimic a startup’s branding, causing customer confusion and loss of goodwill. The remedy of passing off, although available under common law, is harder to prove and costly to enforce.

Legal Rebranding & Financial Loss

If the startup is served with a cease and desist notice from a trademark owner, it may be forced to rebrand, change all marketing material, update domain names, and lose digital presence all of which involve significant costs.

Relevant Provisions and Legal Remedies

Under the Trade Marks Act, 1999:

• Section 18: Application for registration must be made in prescribed class(es).

• Section 9: Absolute grounds for refusal (includes descriptive/generic names).

• Section 11: Relative grounds for refusal (conflict with existing trademarks).

• Section 21: Anyone can oppose the registration of a published trademark.

• Section 29: Trademark infringement – using an identical or deceptively similar mark.

• Section 135: Provides reliefs like injunction, damages, and delivery of infringing goods.

Under the Companies Act, 2013:

• Section 4(2): Restricts registration of a company name that is identical or too similar to an existing registered name or trademark.

• Rule 8 of Companies (Incorporation) Rules, 2014: Detailed naming guidelines.

Recent Judicial Precedents

Raymond Limited vs Raymond Pharmaceuticals (2022)

The Bombay High Court held that even if a company is registered under the Companies Act, it does not automatically enjoy trademark rights. If it causes confusion with an already registered brand, it may be restrained from using the name.

Hindustan Unilever Limited v Reckitt Benckiser (India) Pvt. Ltd. (2021)

The Delhi High Court emphasized that consumer confusion is the key test in trademark disputes, and registration under the Companies Act is not a defense against trademark infringement.

Amritdhara Pharmacy v Satyadeo Gupta (AIR 1963 SC 449)

This case laid down the test of deceptive similarity, which remains a guiding principle in determining infringement and passing off.

Trademark Filing Process for Startups

Public Search: Check Availability of Name/Logo

Before filing a trademark application, startups must ensure that their proposed brand name, logo, or tagline is unique and not already registered or pending with someone else.

• This is done by conducting a trademark search on the official IP India website: https://ipindia.gov.in.

• Search can be performed using the Wordmark Search Tool under relevant classes (as per the NICE Classification system – 45 classes total).

• The search will show if any similar or identical trademarks exist, whether registered or objected.

Legal Importance:
Avoids possible rejection under Section 11 (relative grounds for refusal) and future legal conflicts.

TM Application Filing (Form TM-A)

Once a clear name/logo is finalized, the next step is filing the application through Form TM-A on the IP India portal or via an authorized trademark attorney.

• You must select the correct trademark class based on the nature of your goods/services.

• Details required:

  • Applicant's name and address

  • Trademark image (if logo)

  • Description of goods/services

  • Date of first use (if already in use) or “proposed to be used”

Legal Basis:
Filing gives you the right to use the ™ symbol and establishes a priority date for your claim under the Trade Marks Act, 1999.

Examination and Reply to Objection (Section 9 or 11)

After filing, the application is examined by a Trademark Examiner under:

• Section 9 – Absolute grounds for refusal (e.g., generic, descriptive, deceptive)

• Section 11 – Relative grounds for refusal (conflict with an existing mark)

If the Examiner finds any objection, an Examination Report is issued (usually within 1-2 months).

• The applicant must file a reply to the objection (within 30 days) and may be called for a hearing if needed.

• A proper explanation, evidence of use, or legal arguments can help overcome the objection.

Legal Remedy:
Filing an effective reply avoids refusal and pushes the application forward.

Publication in Trademark Journal

If the trademark passes the examination, it is published in the Trademarks Journal, which is publicly available on the IP India website.

• The trademark remains open for opposition for 4 months from the date of publication.

• Any third party who believes your mark infringes their rights can file a notice of opposition under Section 21.

If no opposition is filed, or if the opposition is resolved in your favor, the trademark proceeds to registration.

Note:
A trademark that is opposed cannot proceed to registration until the opposition is decided by the Registry.

Registration and TM Certificate

If no opposition is filed or successfully overcome, the trademark is registered and a Registration Certificate is issued.

• The registered trademark can now use the ® symbol (under Section 23(2)).

• The registration is valid for 10 years from the date of application and can be renewed indefinitely under Section 25.

Legal Rights Granted:

• Exclusive right to use the trademark for specified goods/services

• Right to sue for infringement

• Ability to license, assign, or franchise the mark

Why Startups Must Prioritize Trademark Registration

Secure Exclusive Rights and Strengthen Brand Control

Registering a trademark ensures that your startup owns exclusive legal rights over its brand name, logo, or tagline in connection with the goods or services you offer. This legal protection empowers startups to prevent others from copying or misusing their brand identity, and to take swift action against counterfeiters or lookalike competitors.

Enhance Investor Confidence and Market Trust

A registered trademark reflects a startup's commitment to professionalism, long-term planning, and legal diligence. It builds confidence among investors, clients, and business partners by signaling that your brand is legitimate, unique, and well-protected under intellectual property law key factors that influence funding and collaboration opportunities.

Enable Broad Protection Across Industries and Borders

Through multi-class trademark applications, startups can protect their brand across various goods and service categories. Additionally, international trademark protection can be obtained through the Madrid Protocol, allowing startups to secure their brand in over 120 countries with a single application an essential step for those planning to scale globally.

Checklist: Business Name and Trademark Protection

Conclusion

The distinction between a business name and a trademark is not just academic it has real and significant legal consequences. While the Companies Act ensures that no two companies can operate under identical legal names, only the Trade Marks Act offers exclusive commercial rights over a brand identity. For startups, especially in competitive industries, securing both business name and trademark is not a choice but a necessity.

Avoiding this confusion early on by taking proper legal steps ensures the startup builds a strong, recognizable, and legally secure brand. When in doubt, consult a legal professional to perform thorough due diligence before launching your brand identity in the market.

Frequently Asked Questions (FAQs)

Q1. Is registering a business name the same as registering a trademark?

Ans. No. Registering a business name with the Ministry of Corporate Affairs (MCA) only gives your company legal recognition to operate. It does not grant you exclusive rights to use that name as a brand. For brand protection, you must register it as a trademark under the Trade Marks Act, 1999.

Q2. Can two businesses have the same name if one has a trademark and the other only has company registration?

Ans. Yes, this is possible. If your business name is not trademarked and someone else registers it as a trademark, they may gain exclusive rights to use it in trade, even if your company is legally registered under that name. This is why trademark registration is important.

Q3. What is the difference between a company name and a trademark?

Ans. A company name is your official legal name used for incorporation and statutory purposes. A trademark is your brand name or logo used for promoting your goods or services, and it gives you exclusive commercial rights to prevent others from using similar names in the same field.

Q4. Can I use the ™ symbol without registering my trademark?

Ans. Yes. You can use the ™ symbol once you have applied for trademark registration. However, you can only use the ® (registered) symbol after your trademark is officially registered and the certificate is issued under Section 23 of the Trade Marks Act.

Q5. What happens if someone else has already trademarked a name similar to my company name?

Ans. If a similar or identical trademark already exists, you could face:

• A cease and desist notice

• Opposition proceedings under Section 21

• A possible infringement lawsuit under Section 29

You may even have to rebrand if the trademark owner proves prior use or registration rights.