Generally, everyone uses the term company as company and company as company, but there is one main difference between them: the company name is the full name of the legal entity, while the registration of the trade name is mandatory if any other person or partner continues. other business other than your name.
What is the company name?
The company name is the full name of the legal entity. It became a separate legal entity due to the incorporation of the company and that is why it is separate and different from the people who run it. The company registration requirements establish the “CRO”, which stands for Companies Registration Office. For an acceptable name, the company name must be distinct from another company name and must not be ambiguous or violent, otherwise it is assumed to be illegal. Corporate law ensures that a company name includes proper suffixes such as limited, private limited and public limited. This is to confirm that entities trading with the company are aware of its legal status. Under section 144 of the Companies Act 1963, which establishes that the entire company must display its name outside each office or place where its commercial activity was carried out. in.
What is the trade name?
Trade name registration is mandatory and must be registered if any other person or partner conducts business other than in their name that distinguishes them from the Company and reveals that the business is public. Whoever owns the trade name is responsible for the responsibilities assumed under that name. An authorized entity is not formed and therefore there is no restriction of liability. The trade name does not have shareholders, directors, and many of the legal obligations that apply to corporations do not apply to trade names. Businesses are required to register their business names under the Business Registration Act of 1963. Business name requirements are set by the CRO for registration.
- The company name is a full legal entity, while the company name is required.
- In the company, the restriction of liabilities is present, while in the business due to an unauthorized entity, there is no restriction of liability.
- The company has a broader scale, while the company is a self-owned company.
- At the end of the Company entity it is written as Pvt Ltd, while in Business no such suffix is present.
- The company faces more government regulations compared to businesses.