Products

Tools

Resources

Company

Support

Request Callback

GST GST Supply GST Updates

Legal Name vs. Trade Name Under GST

Q: What is the difference between trade name and legal 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.

Q: Is business legal name and trade name the same?

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.

Q: What is the difference between trading name and business name?

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.

Q: How do I change my legal name and trade name in GST for proprietorship?

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 .

Q: How to Add Trade Name in GST?

You can add a trade name to your GST registration in two ways, depending on whether you are a new or existing taxpayer: For New Businesses Registering for GST: Include the trade name during the online GST registration process on the GST portal. There will be a specific field for entering your trade name. For Existing Businesses with a GST Registration: File an amendment application under the core fields on the GST portal. Here's a general breakdown of the steps: Login to the GST portal. Go to Services > Registration > Amendment . You will likely find options for core and non-core field amendments. Choose the option for core field amendment as adding a trade name falls under this category. The process may vary slightly depending on the specific portal interface, but you should be able to find clear instructions and prompts to guide you through the amendment process. You may be required to upload supporting documents for the trade name in some cases.

Q: How do I add a trade name if I'm a new business registering for GST?

Simply include your trade name during the online GST registration process on the GST portal. There will be a designated field for entering this information.

Q: How do I add a trade name if I'm already registered for GST?

Existing businesses can add a trade name by filing an amendment application under the core fields on the GST portal. This process usually involves: Logging into the GST portal. Navigating to Services > Registration > Amendment. Selecting the option for core field amendment (adding a trade name falls under this category). Following the on-screen instructions to complete the amendment process.

CA Kamal Sakle at April 19, 2024

The Legal Name of Business in GST 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.

What is Legal Name of Business in GST for Proprietorship?

The Legal name of Business in GST for proprietorship (as mentioned in PAN) is the formal, legitimate name of your enterprise that can be identified with the Government. An individual or organization's officially registered name is the legal name of business. Generally, business documents, tax returns, and other official paperwork utilize the GST legal name.

What is Trade Name in GST?

A Trade Name in GST is the name your business is normally called and the name which is used for advertising and marketing of your company. A trade name is known as a DBA (doing business as) name. Trade name in GST plays a crucial role among the numerous factors that contribute to the success of a business.

For instance, as we see in the company "Walmart". Walmart's legal enterprise name is Wal-Mart Inc. however its trade name is simply Walmart—it's the name it makes use of on its marketing and website, and what most people refer to it as. However, its legal business name in GST, which seems on all the office work concerning the government (business enterprise filings, taxes, compliance, etc.) is Wal-Mart Inc. Some companies create high-quality trade names for high-quality factors of their corporation.

Legal Name Vs Trade Name

A legal name of business is a name that is registered at the time of incorporation of a company or business. The legal name is generally the name of the company on the PAN. The legal name of a business and trade name is one of the key factors that play a vital role in the success of any business enterprise. Without a doubt, there are tons of factors that determine the success of your company. Your business name is one of the crucial things potential customers notice about your organization. It allows you in connecting your customers and allows in interacting with items or/and services supplied by you. With an appealing legal name of business or trade name, your commercial enterprise is one bit closer to being fruitful. With regards to what you name your organization, you want to know whether or not it’s more valuable to use your legal name of business or trade name. You can use a trading name from our trade name examples which is also legal business name while you no longer need to apply your legal name of the business in GST for proprietorship as generally legal name of business ends with LLP, Pvt. Ltd. Moreover, some other fundamental distinction is that legal name of business is normally utilized in authorities while trade name is utilized in classified ads and signboards. Let us apprehend the trade name vs legal name with an example “Urban Company” is a trade name and is generally recognized by everyone. However, the legal name of the business of this corporation is UrbanClap Technologies Pvt. Ltd.

Points to Remember

To verify the legal name and trade name under GST of the taxpayer Form GST REG-06 issued by the authority shall be checked.
In the case of a company or business that is registered under Companies Act 2013, their trade name and legal named can be checked with the help of an Incorporation certificate issued by the Registrar of company.
If it is a partnership firm then in such case their legal name and trade name can be verified using the certificate issued by the Registrar of Firms.

Registration Requirements

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 decide 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.

Mismatch Scenarios

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.

Conclusion

Understanding the distinction between legal name and trade name in GST is crucial for businesses. 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.

Frequently Asked Questions

What is the difference between trade name and legal name?

Is business legal name and trade name the same?

What is the difference between trading name and business name?

How do I change my legal name and trade name in GST for proprietorship?

How to Add Trade Name in GST?

How do I add a trade name if I'm a new business registering for GST?

How do I add a trade name if I'm already registered for GST?

About the Author

CA Kamal Sakle

Senior Content Writer

I am a Senior Content Writer at Masters India with 4+ years of experience in the writing field. I possess exceptional skills in researching, writing, and publishing compelling content. Throughout Read more...

Rate your experience

★
★
★
★
★
★
★
★
★
★

4.50 / 5. Vote count: 154

Billzo - Billing E-way Bill GST App

With our Billzo - Billing E-way Bill GST App, you can rapidly produce and track sales orders using bill maker, invoice creator, and e-way bill maker. Explore Now!