ADVANTAGES OF COMPANY REGISTRATION AND IPR FOR STARTUPS
Company registration is a formal and a legal process of registering your business with the appropriate authorities in India. When we register as a company, we are granted formal permission to engage in commercial activity. It is a crucial step for new businesses to take in the modern era. Previously, company registration was a time-consuming and expensive procedure for startup founders, but with the development of the internet, it has become simple and important for business owners. Company registration is required regardless of the size of the company and provides business with legal protection. A company is an entity recognizable by law and is usually an affiliation of persons, joined to undertake business organization, holding a different legal entity, perpetual succession, and a common seal. Legal specifics and registration aspects associated with company registration for start ups or any other entities are all governed by the Companies Act, 2013. Starting a new business venture indeed requires careful planning and consideration. One of the crucial steps for any startup is to register as a company and take care of intellectual property rights, the intangible assets of their business. Intellectual Property Rights such as patents, trademarks, industrial designs, copyright help start ups gain a competitive advantage and build their brand value in the long run. It is crucial to take advise on all these matters and work with legal professionals to avoid and minimize any kind of hindrances or obstacles in expanding and running our business efficiently and smoothly. Knowledgentia Consultants has a team of foremost start up facilitators in India who are experts in handholding and mentoring start ups at all stages in all matters.
ADVANTAGES OF COMPANY REGISTRATION FOR START UPS
Company registration offers a range of advantages and legal protections that can significantly benefit startups in India. Few of them include:-
- Limitation on financial obligations upon directors and shareholders.
- Separate legal entity and protection of personal assets of founders.
- Cost and Risk factors are minimal
- Easy transferability of ownership and management rights
- Enhanced Credibility and Investor Confidence which makes borrowing of funds easy.
- Easy access to funding and banking Facilities
- Availability of tax benefits and Incentives
LATEST GOVERNMENT SCHEMES FOR START-UPS IN TERMS OF INTELLECTUAL PROPERTY RIGHTS
The Government of India provides various exemptions and benefits to qualifying startups under the Startup India scheme of the Department of Industrial Policy and Promotion (DIPP). Startups can avail significant fee reductions in intellectual property (IP) protection.
Under the scheme, trademark fees have been reduced by 50%. This reduction in fees makes IP protection more affordable for startups compared to non-startup companies. For Indian startups, the focus should be on creating and identifying IP while striving for innovation and protection to excel in their respective industries. The government has introduced several startup schemes falling under different ministries and departments to support and nurture entrepreneurial growth:
- Start-up India Initiative and Make in India
- Start-ups Intellectual Property Protection (SIPP)
- Schemes by the Ministry of Micro, Small, and Medium Enterprises (M/o MSMEs)
- Accelerating Growth of New India’s Innovations (AGNII)
Further, a professional body CIPAM(Cell for IPR Promotion and Management) under DPIIT undertakes simplifying and streamlining of IP processes by formulating and implementing a focused strategy for each policy objective of the government. It is engaged in coordination with State level agencies and Ministries/ Departments of the Government of India, industry bodies as well as international agencies for IP cells to be set up. It is involved in conducting IPR awareness campaigns across the country in schools, colleges/universities and the industry. Training and sensitization programmes for enforcement agencies and Judiciary, coordination for effective enforcement of IPR rights and Study and facilitation of implementation of best practices for promotion and commercialization of IP within the country are also undertaken by CIPAM. Such efforts and initiatives by professional bodies with government support gives young innovators more opportunities to launch their start ups with strong fundamentals and basics.
These initiatives aim to provide startups with the necessary support, resources, and protection for their intellectual property, enabling them to thrive in a competitive business environment.Top of Form
In order to safeguard and foster the rights associated with Intellectual Property (IP) of emerging businesses, as well as to foster a culture of ingenuity and originality among them, the Indian Government introduced a program called the Start-Ups Intellectual Property Protection (SIPP) Scheme in 2016. This initiative aimed to support startups in the preparation and handling of their IP applications by providing assistance through designated IP Facilitators. The costs incurred by these facilitators were covered by the Office of the Controller General of Patents, Designs, and Trademarks, a division of the Department for Promotion of Industry and Internal Trade under the Government of India. Given its positive impact, as evidenced by the noteworthy rise in IP filings by startups, the Scheme was extended for a period of three years, until March 31, 2023.
Consequently, there has been a substantial surge in IP activities undertaken by startups over the past six years:
- Trade mark applications filed by startups rose from 4 in 2016-17 to 8,649 in 2021-22.
As of September 30, 2022, a sum of INR 380.81 Lakhs has been disbursed as fees to the facilitators aiding startups in their IP filings. The revised fee structure will further enhance the submission of IP applications by startups through the valuable assistance of IP facilitators, who are committed to delivering effective and high-quality services.
At Knowledgentia Consultants, which is the best law firm in India for Global IPR protection, we provide startups with valuable support for company registration and intellectual property protection. By encouraging a focus on fostering innovation and IP creation, we have been playing instrumental role in empowering startups to excel in their respective industries. Our mentoring not only make IP protection more accessible and affordable for startups but also encourage them to prioritize the development and identification of their intellectual property. With a strong emphasis on nurturing entrepreneurial growth, we are committed to supporting startups in India across the length and breadth of country. We are your one-stop solution for all kinds of legal, compliance and supplemental matters concerning start ups. In case of any query regarding this matter you may email us at email@example.com or visit our website -https://knowledgentia.com/.