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Differences between trademark registration and company registration

Published on: February 25, 2021
Reading time: 3 min
Differences between trademark registration and company registration

Trademark Registration vs. Business Registration in Colombia: Key Differences

Did you know there are differences between trademark registration and business registration? While they may seem synonymous, they are distinct actions with different benefits for commercial activity in Colombia. This article will explain the differences and how they can help you start a business.

Understanding the importance of legally establishing a company is fundamental for any entrepreneur.

With this in mind, in this blog we want to tell you about the differences between trademark registration and business registration and how they can help you if you want to start a business.

What is Trademark Registration?

A trademark comprises a set of words, sounds, smells, shapes, and, in general, any sign or symbol that identifies a product or service offered by a company.

Trademark registration, therefore, refers to the protection of this identity in order to obtain and protect the rights of exclusive use and reproduction.

In the commercial field, this guarantees that no one can use your trademark for profit, thus generating protection for your assets.

For your audience, having your trademark registered guarantees: empathy, recognition, trust, and quality.

If you want to know how you can carry out the trademark registration process in Colombia, Complete Guide on How to Register a Trademark in Colombia Step by Step.

What is Business Registration?

Called commercial registration, it allows merchants and their establishments to be registered; in this way, it certifies that they can exercise and accredit their activity as merchants.

While obtaining commercial registration makes you responsible for certain tax rights and duties before the state, it also offers a series of opportunities for credit and growth opportunities.

The foregoing translates to the fact that, as a legally constituted company, you have many more opportunities for growth in the medium and long term, and even the possibility of expanding to other regions.

If you want to know how you can carry out the business registration process under the Simplified Stock Company (SAS) modality in Colombia, Step-by-Step Guide to Creating and Registering a Company in Colombia. You can also learn more about the Simplified Stock Company in Colombia: The best way to start a business.

Differences between Trademark Registration and Business Registration

Having defined both terms, we will now show you the differences between these two activities:

  • As mentioned earlier, trademark registration seeks to protect and grant the exclusive use of a product or service; business registration identifies business owners and their establishments.
  • Business registration is mandatory, that is, it must be done if you want to be legally constituted; while trademark registration is optional, that is, while it is not mandatory, having it adds value to your product or service.
  • Business registration must be processed with the chamber of commerce of the domicile where the merchant is located, while trademark registration must be processed with the Superintendence of Industry and Commerce.
  • You can only have one commercial registration, but you can have several trademark registrations, depending on the business owner's need to identify their products or services.

In conclusion

They may seem synonymous, but both trademark registration and business registration are actions that protect different needs.

Business registration seeks to accredit merchants and their establishments as legitimate businesses before the state and allow them to carry out their activities.

While trademark registration seeks to protect and grant exclusive use of the identity of the products and services offered by the business itself.

It is always recommended to have both registrations when starting a business in Colombia legally. Learn more about the importance of legally establishing a company.

And, if you need advice on trademark and business registration matters, we can help you, at Servicio Legal, we are trained to be your representatives and help you establish your company and register the trademarks you want.

Contact us and schedule your appointment today!

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