The Legal Name of the Business is the name that you use for all the official document for trade name in GST to create your enterprise. If it's your personal business enterprise, it's the name on the company papers you document, which is included in the memorandum of association. By submitting the papers, you formally designate the legal name of the business (as mentioned in pan) in the GST of your enterprise. This is the name that comes on the tax ID or employee ID and is the legal name of the business in GST used on your tax returns.
If you're forming a private company or an LLP, you're required to register your corporation's legal business name. Registration of the name is simply a part of the legal requirements associated with your company. Whatever name you use in the filings is your legal name of business in GST. A separate registration is not required in that case. Note that before reporting your incorporation papers you may do a name search with the state to decid e whether or not the name you need to apply is available. You might be able to keep hold on to a name (with a fee) until you get the papers filed, however that isn't the official registration of the name. You are not required to have a trade name; you can have a business with just the GST legal name. But in case you select to apply a trade name in GST, you'll want to register the name under and comply to trademark legislative requirements.
The following are two major mismatch scenarios that are commonly faced: The absence of the trade name on the registration certificate. The difference in legal names under different statutes or laws. However, this can be rectified by amending the legal name or trade name as per the certificate of incorporation. For instance: If a company name in the incorporation certificate is Shree XYZ Pvt. Ltd. whereas in the GST registration certificate it is Shri XYZ Pvt. Ltd. So in this case, the name in the GST registration certificate shall be corrected as per the name mentioned in the incorporation certificate.
Through the above statements, we can conclude that the trade name and legal name of the company/enterprise or partnership are two different things. Further, these names shall not be interchangeably used. Lastly, it is important to know the difference between legal name and trade name.
A legal name is the entity's formally registered name. It appears on business papers, tax documents, and other government forms. A trade name is a name that the entity chooses to conduct business under. For example, Urban Company is a trading name known by everyone. Its legal name, however, is UrbanClap Technologies Pvt. Ltd.
Business legal names and trade names are not the same. The former is a registered name, whereas the latter is a chosen name to conduct operations. Companies use this name to create brand awareness and a community.
A business name is used to conduct business on papers. It is used for all kinds of legal paperwork. Trading name, on the other hand, is commonly known to people. It is also the name you use for advertisements, brand campaigns, and brand awareness.
For changing the legal name/trade name in GST, log in to the portal and go to SERVICES. Click on Amendment of Registration Core Fields. Make changes to the desired name. Also, mention the reason for the change and date of the amendment. Once done, click on SAVE. Next, complete your verification by clicking on DECLARATION. Provide the authorized signatory and place of business. Last, click on save to complete the process.