Benefits of Company Incorporation – Startup Indiax

Helps to generate capital

Capital is the money needed to produce goods and services. A company has two forms of obtaining capital: equity, which means raising funds through the public, and debt referring to bank loans or other forms of credit. When a company is incorporated, it is considered more reliable; hence it shall be easy to obtain capital. The SEBI and other allied laws require the incorporation of the company to allow sourcing funds in the form of equity. Moreover, if the funds are raised from the public instead of a private group, the company must satisfy the conditions for a public company and be listed on a recognized stock exchange. Hence, it promotes an easy way for capital formation and pooling.

Separate entity

A company is a separate legal entity to the following stakeholders:

• Promoters: People who initiated the company setup
• Directors: People who control the company and manage its business
• Shareholders: People who own the company

Benefits of Trademark in India–Startup Indiax

• Exclusive Rights: Registered trademark owners enjoy exclusive rights over the trademark. The owner can use the same for all the products falling under the class(es) applied. Further, the owner can enjoy exclusive ownership of the Trademark. A registered trademark gives you an exclusive right to take legal action against a party who attempts to violate your right by making unauthorized use of your trademark

• Builds Trust and Goodwill: Other benefits of having a trademark are that it helps in the establishment of trust and goodwill in a brand. The established quality of your product and services is known by everyone through the trademark. The trust and goodwill in a brand increase when it becomes popular among consumers. It helps in creating permanent customers who are loyal and always opt for the same brand.

• Differentiates Product: The purpose of a trademark is to have a distinguished brand identity. This is also one of the benefits of a trademark. This means, that a unique brand identity creates a brand appeal and attracts relevant consumer markets to buy a product. It gets easier to market or commercialize a product with a unique brand identity that is in line with the market requirements. It creates a unique identity for you among the competitors. The brand identity lets you communicate your vision, quality, and various other features of your product as well as the business enterprise.

• Recognition of Product Quality: It gives recognition to the quality of the product. Customers attach the product’s quality to the brand name and this image is created in the market about the quality of a particular brand which helps in attracting new customers as they can differentiate the quality of a product by the logo/brand name.

• Creation of Asset: Trademark is intellectual property. Having a trademark is an asset. A registered trademark is a right created which can be sold, assigned, franchised, or commercially contracted.

• Use of ® Symbol: Once the trademark is registered you can use the ® symbol on your logo stating that it is a registered trademark and no one can use the same trademark. If a third party violates your registered trademark then you have a right to bring legal action against the infringer.

• Protection For 10 Years at Low Cost: Online Trademark registration is done at a very low maintainability cost. Once you register the trademark you have to just pay the renewal cost and the same is to be paid every ten years of registering the trademark. It is cost-efficient and helps your company create a unique image.

• Power to impose copyrights by filing a lawsuit for copyright infringement 

The certificate of registration serves as prima facie evidence that creative work is original and owned by the registrant of the copyrighted work. This document is very vital and essential if the copyright owner wants to get a preliminary injunction against a copyright infringer.

• Notifying the public about the ownership

Ownership is frequently at stake in copyright disputes. Even if an alleged infringer does not claim to be the creator, the copyright owner must prove that he is, in fact, the legitimate owner of the copyrights in order to prevail on a copyright infringement claim.

• Legal proof of ownership and possession

The most important benefit of copyright registration is the ability to notify the public that the work belongs to an individual. The second most important benefit is the legal legitimacy it thereafter provides from a legal perspective.

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