Usually every one use the term company as Business and Business as Company but there is a primarydifference in between of them that is the company name is a whole name of legal entity while the registration of Business name is obligatoryregistered if any other individual or partner carries on business other than your name.
What is Company Name?
Company name is a whole name of legal entity. It became a separate legal entity due to company incorporation and that is why it is separate and different from persons who run it. Thecompany requirements of registration are set down by the “CRO” which is stand for Companies Registration Office.For an acceptable name the company name must be distinct from other company’s name and should not be ambiguous or violent otherwise it is supposed to be illegal. Corporate legislation makes sure that a company name includes suitable suffixes, like limited, private limited and public limited. This is to confirm that the entities trade with the company knows its legal status.Under the section 144 of Companies Act, 1963 which states that every company is required to display its name on the outside of every office or place in which its business is carried on. The company name must have to be displayed evidently at the entity’s registered office.
What is Business Name?
Registration of business name is obligatory and must be registered if any other individual or partner carries on business other than your name which distinct them from Company and reveals the business as Public. Whoever holds the business name is accountable for the responsibilities which are taken on under that name. No authorized entity is formed and hence there is no restriction on liability. Business name has no shareholders, directors and many of the legal duties which apply on companies do not applyon business names.Businesses are mandatory to register their business names under the Registration of Business Act, 1963. The requirements of the business name are set down by the CRO for registration.
- Company name is a whole legal entity while the Business name is obligatory.
- In company restriction of liabilities are present while in business due to not authorized entity there is no restriction on liability.
- Company is on broader scale while Business is own enterprise.
- At the end of the Company entity it is written like Pvt Ltd while in Business not such suffixes are present.
- Company faces more Government regulations as compared to Business.