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Legal Difference Between a Brand and a Company

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Last Updated on May 24, 2024 by Swetha LLM

In recent years, India has developed a robust industry for entrepreneurs. With its enticing programs, the government is currently supporting both Made in India and Startup India. This encourages young entrepreneurs to launch their own businesses and brands. There are two distinct facets within the realm of business. Starting a company and building a brand are two different commercial activities.

If you wish to create an outstanding brand and a company, you should know the legal differences between a brand and a company.

What does a “brand” mean?

A brand might be an organization’s name, sign, symbol, logo, etc. The brand name needs to be safeguarded. Trademark registration serves as the primary means of protecting brand names. Nobody else is able to use the same name or profit from your brand name after it is protected.

For example, A brand, such as “Kanakkupillai” (Brand Name), refers to the goods and services offered by the company. The business may utilize this brand name for sales and marketing campaigns.

Main benefits of brand names

  • Promotes the company’s expansion in the market
  • Raises the value of your company relative to its rivals in the market
  • Distinguishes your company in the marketplace
  • Aids in attracting clients
  • Boosts company profits and
  • Aids in drawing in profit for the enterprise.

Steps are involved in building a brand

  • Recognizing your target audience.
  • Investigate your rivals.
  • Describe the goals and position of your brand.
  • Create a voice and personality for your brand.
  • Write a brand’s narrative.
  • Select a brand name.
  • Create a tagline and a logo for your business.
  • Put your brand to use in your company.
  • Never be reluctant to rebrand.

Legal Factors

  • For brand identities to remain safe from rivals, trademark protection is crucial.
  • The protection can be offered by a government agency or a registered organization.
  • This gives the business or entity the sole right to utilize the brand name.

What does a “company” mean?

A company is a collection of people who work toward a common goal in order to make a profit. “Trade name” or “company name” is the name given to the company that was established under the Companies Act. Based on the type of current business structure, it needs to be suffixed with a Corp, LLC, Private Limited Company, or other legal suffixes.

For example, A company, such as “Govche India Pvt Ltd” (Company Name), refers to the whole name of the private limited company as an official name under which the sole individual or the group of individuals decides to carry on some business activity.

Benefits of a company name

  • They profit from being an independent legal entity.
  • They are reliable and accessible.
  • They boost the companies’ credibility.
  • Aids in obtaining funds.
  • These entities attract investors.
  • Different forms can be generated by them.

How Can a Company Be Incorporated?

The following actions must be taken in order to incorporate a firm:

  • Pick a memorable name for your company which is not already in use or has not yet been used by someone else.
  • After visiting the Ministry of Corporate Affairs’ official website or web portal, accept the name.
  • Form Spice+ Part A must be submitted in order for the name to be approved.
  • After the company name is approved, submit Spice+ Part B, the second form.
  • Following your submission of the application, the company registrar will verify it.
  • The Certificate of Incorporation will be given to the applicant following the successful verification process.

Legal Factors

  • It is crucial to take legal considerations into account while naming a firm. Since no other company is currently using the name, it should be available.
  • This will keep clients from being confused and avoid any legal problems. Ascertain that no other company is currently using your name.
  • No intellectual property or trademark laws may be broken. An appealing name for a business should appeal to potential customers and convey the company’s core principles.
  • A memorable business name can help a company stand out from the competition and convey its unique personality to the market.

Legal Differences Between a Company and a Brand

People frequently mix up the terms “company name” and “brand name.” They consider the company name and the brand to be identical. But that is untrue.

The following table lists the legal distinctions between a company and a brand:

Company Brand
A company is also an organization or legal entity that conducts business, such as creating or offering goods or services. A brand is a distinguishing mark, logo, name, or symbol that consumers use to identify one product from another.
A single company or entity cannot own more than one brand. Multiple brands can be owned by one company.
A company that manufactures or markets its goods or services is called a company. A brand is built by the expectations and perspectives of its customers.
To distinguish one firm from another, one uses the name of the company. A company’s products or services can be distinguished from those of another company using its brand name.
A company’s assets and operations are under the legal control of its shareholders or owners. A brand is, first and foremost, a company’s intellectual property.
The company is the legal body that establishes the brand. A brand is the company’s visual identity.
A company’s reputation is how people generally see its ethics, values, and business methods. Customers’ opinions about a company’s goods or services are referred to as its brand.
Over time, a company’s identity becomes more consistent. As consumer preferences and market trends shift, a brand may adapt over time.
The market presence depends on how widely recognized and popular it is among customers. Branding may be more or less present in the market than in the corporation.

These are the major key differences between a company and a brand.

Why do some companies have more than one brand?

Among the causes of a company’s various brands are:

1. Increased awareness

For the same reason that it hires a large number of workers, a corporation hosts several brands. Various brands employ various marketing strategies, join various advertising pools, draw different clients, and produce various outcomes. Just as workers possess distinct objectives, brands may also possess varying goals. Having several brands allows a business to reach a wide range of consumers and operate in entirely separate markets.

2. A stronger momentum

A company may be able to attract even more clients by creating a second brand if it is already experiencing great success with its first product and brand. An established company name with an outstanding reputation and well-known brands has a higher chance of success than an unknown company name with less well-known brands for new items, even if they are unusual for the company.

3. More choices for clients

A company’s clients have more options for the brands it carries. A business may link particular items to particular brands. Thus, a company with several well-known brands might offer a variety of goods to suit various customer demands.

For instance, a business that began by manufacturing kitchen appliances may grow to encompass brands and merchandise for several categories of domestic goods. After this expansion, the company’s various brands will be able to satisfy a wide range of customer needs.

Conclusion

In the end, an organization is made up of all its workers, and a trademark serves as a means of identifying a company’s products or services to the general public. For the purpose of managing and developing a company’s identity and branding over the long run, it is crucial to know the difference between a brand and a company before starting a business.

FAQs

  1. How are the Company and Brand connected? 

A business may have several goods, and each one has the ability to establish itself as a brand. It can also function itself in marketing and selling a variety of goods under that name. Products might outsell their brand name when they become overly popular.

  1. Can my company name and brand be different?

Absolutely, there is elasticity in marketing techniques and product lines when the company name and brand name are different.

  1. Which Four Categories Do Brands Fall Into? 

The four most crucial ones are personal, business, and product/service brands.

  1. Give an illustration of how a company differs from its brand.

For instance, the brand iPhone caters to lifestyle and serves as a trusty image regarding the company or various products category under the company name Apple Inc.

Swetha LLM

Swetha, LLM, a lawyer with skills in writing legal content, is passionate about simplifying complex legal concepts and engaging readers with her insights of nuanced legal ideas. She is able to preserve the accuracy of legal material while adjusting the tone and style to fit the audience.