Legal registration is very important for all companies who are planning to set up their business in their country.
Without legal registration, it is not possible for any company to run their business on the right track.
There are companies who have not registered their business legally, mainly because completing all the formalities takes a lot of time and money.
Many companies try the short cut method of starting their business without following all the rules thoroughly.
But, it must be noted that without proper legal documents and legal registration, it is pointless to even think of starting a business.
These legal documents are required for many uses such as Government approvals, loans from banks, insurance etc.
Another important factor is the trademark. If you have an exclusive name for your company and wish to have a patent right over the name so that no other companies can grab your name to start of their business will have to complete all the legal formalities in order to keep the name only for you.
If the legal formalities are not carried out, chances are that any company can copy your company name and in case that company has done all the documentation and legal formalities for the company’s name, then your company will be liable to pay any fee for unauthorized use of the trade name.
Yes, even though you had the trade name before the other company registered, the legal documents when verified will show that the other company is the real owners of the trade name where as your company, since you have not adhered to the law, will have to remove the name and decide a new name altogether but at the same time, ensure that you get your legal registration done before someone else grabs your trade name.
This is very important for any company planning to start a business.