Understanding who should legally own your brand — and why ownership decisions shape your control, valuation, and investor confidence.
By Prashant Kumar
Introduction
Most founders know how to register a trademark — but very few pause to ask who should own it.
Should it be filed in the founder’s name, the startup’s name, or the company’s name?
The answer isn’t merely procedural. It defines who truly controls the brand, who earns from it, and even who keeps it if investors take over.
I’ve advised hundreds of startups during incorporation and fundraising — and I’ve seen how one simple decision about trademark ownership can either secure a founder’s position or create future legal chaos.
In this article, I’ll break down who can apply for a trademark in India, the pros and cons of each approach, and how strategic ownership planning can protect both your business and your bargaining power.
Who Can Apply for a Trademark in India?
Any individual, startup, company, LLP, partnership, trust, or society can apply for a trademark in India under the Trade Marks Act, 1999. The applicant must be the brand’s owner or intended user and should file in their correct legal capacity, not through a proxy or informal entity.
Legal Foundation
Under Section 18(1) of the Trade Marks Act, 1999, “any person claiming to be the proprietor of a trademark used or proposed to be used by him” can apply for registration.
This covers:
- Individuals
- Registered startups and MSMEs
- Companies (private or public)
- LLPs and partnerships
- Trusts, NGOs, and associations
You can even apply for a “proposed to be used” mark before launch — provided your intention to use it is bona fide.
Individuals
An individual can apply for a trademark in their own name — especially if they are operating as a sole proprietor or creating a personal brand.
When It Makes Sense
If you’re a freelancer, creator, influencer, or professional consultant, filing under your personal name provides flexibility and direct control.
Example:
A graphic designer named Rohan Mehta registers “Rohan LensWorks” in his personal name before launching his studio. Later, he can assign it to his company or license it out.
Mistakes to Avoid
- Filing personally when you intend to transfer the business to a company soon.
- Forgetting to execute a formal assignment later.
- Using your personal PAN for business filings, complicating tax records.
Expert Tip:
If you start with a personal filing, always execute a Trademark Assignment Deed once your company is incorporated — ensuring the mark becomes a corporate asset.
Startups and MSMEs
Recognising the importance of IP for early-stage ventures, the government offers reduced filing fees for registered startups and MSMEs:
₹4,500 per class (instead of ₹9,000 for others).
When It Makes Sense
File in your startup’s name if:
- It’s DPIIT-registered or eligible as an MSME.
- You plan to seek funding or external partnerships.
- The brand is already being used in commercial operations.
Example:
A startup “NutraEdge Pvt. Ltd.” files “NutraEdge” in its company name. When investors perform due diligence, IP ownership is clear — avoiding future disputes.
Mistakes to Avoid
- Filing in the founder’s name just to save a few thousand rupees. It complicates ownership and investor valuation later.
- Selecting the wrong applicant type on TM-A (like “Individual” instead of “Startup”).
Expert Tip:
Always align the applicant’s name with MCA and Startup India records. Consistency across filings demonstrates governance and builds investor confidence.
Companies (Private or Public)
A company should ideally be the applicant once incorporated.
It’s a separate legal person that can own, license, and monetise intellectual property.
Why This Matters
When a trademark is owned by the company:
- It becomes a corporate asset on the balance sheet.
- IP remains protected even if founders or directors change.
- It simplifies valuation, franchising, and M&A transactions.
Example:
A founder filed “TechVerse” personally before incorporation. During funding, investors demanded proof of ownership transfer to the company.
A formal assignment and stamp duty followed — delaying the deal by weeks.
Mistakes to Avoid
- Keeping IP in the founder’s name post-incorporation.
- Ignoring assignment documentation.
- Letting the brand remain under personal ownership while the company uses it.
Expert Tip:
Transfer all IP rights (trademarks, domains, copyrights) to the company upon incorporation. Maintain a written record — investors will review it.
Partnerships and LLPs
Both partnership firms and LLPs can register trademarks, provided all partners are mentioned.
Example:
“EcoCare LLP” applies for “EcoCare Naturals” in its name to protect its sustainable products.
Mistakes to Avoid
- Filing under one partner’s personal name.
- Not updating trademark ownership after partner changes or entity conversion.
Expert Tip:
When converting to a private limited company, record IP ownership changes at the Trademark Registry immediately — or renewal later will be blocked.
Trusts, NGOs, and Associations
Charitable organisations can register their names, logos, and certification marks.
Example:
“CleanCity Foundation” registers its emblem under Class 41 (awareness and education).
Common Pitfall:
Assuming NGO registration automatically protects the name. It doesn’t — trademarks are a separate legal protection.
Founder vs. Company: Which Is Better?
| Scenario | Recommended Owner | Why |
|---|---|---|
| Personal brand (artist, coach) | Individual | Direct reputation control |
| Registered startup | Startup entity | Cheaper, structured IP |
| Funded company | Company | Investor comfort + asset value |
| Pre-incorporation idea | Individual (assign later) | File early, transfer later |
| LLP or partnership | Legal entity | Shared legal clarity |
Founder’s Ownership: The Strategic Angle Few Talk About
While I strongly advise startups to align their trademarks with the operating entity, there’s a less-discussed reality: owning intellectual property in the founder’s personal name can be both a financial and strategic advantage.
Let’s look at this more closely.
Financial Flexibility Through Royalties
When founders hold the trademark personally, they can license it to their company and receive royalty payments in return.
This creates an additional and legitimate income stream beyond salary or dividends.
Under the Companies Act, 2013, directors’ remuneration and dividends are regulated — but royalty under a valid licensing arrangement is not capped the same way.
So, a founder who personally owns the brand IP can monetise it through a Trademark Licensing Agreement with their company, provided it’s done transparently and at arm’s length.
Example:
Suppose the founder of “GrowWise Technologies Pvt. Ltd.” personally owns the “GrowWise” trademark. The company can enter into a licensing agreement to use the brand for ₹1 lakh per month as royalty.
This creates a legitimate, tax-compliant payment flow — rewarding the founder for IP ownership.
Expert Caution:
This must be properly documented and disclosed under related party transaction provisions (Sections 188 and 189 of the Companies Act) to avoid compliance issues.
Retaining Strategic Control
Owning the intellectual property personally can give founders significant leverage and continuity, especially in investor-heavy startups.
When the IP belongs to the company, investors — as shareholders — effectively share control over that brand asset.
But when the IP belongs to the founder and is merely licensed to the company, the founder controls whether and how the company uses the brand.
This arrangement can serve as a protective layer for founders who risk dilution or boardroom removal.
While it must be handled ethically and transparently, it ensures the founder’s continued influence over the brand’s identity and usage.
Real-World Reflection:
Think of the case of Rahul Yadav, co-founder of Housing.com.
He was eventually ousted by investors despite being the face of the brand.
Had he personally owned the ‘Housing.com’ trademark and IP portfolio, the balance of power might have been different — the investors could have owned the business, but not the brand identity itself.
That’s the quiet power of intellectual property ownership.
The Middle Path — Founder-Owned, Company-Licensed
In practice, the most balanced structure is often founder ownership with corporate licensing — at least during early stages.
This ensures:
- Founders retain control and flexibility.
- The company has legal rights to use the mark through a documented license.
- Investors can still proceed confidently if the licensing terms are disclosed and professionally managed.
As the company matures or raises institutional funding, the founder can then assign the trademark to the company at fair value — often as part of an equity conversion or IP transfer.
Example:
A founder of “NutraNest Wellness” initially owns the brand personally and licenses it to the company.
When the company raises its Series A, the founder assigns the trademark in exchange for additional shares — turning IP ownership into equity.es A, the IP is assigned in exchange for shares — converting control into equity value.
Risks and Legal Precautions
Personal ownership can backfire if:
- No license agreement is executed.
- Royalties aren’t disclosed under related party provisions.
- IP isn’t transferred when investors enter.
Professional Advice:
This structure must be transparent, documented, and legally compliant.
If done right, it gives founders three key advantages:
- Additional income (royalties)
- Brand control
- Negotiation leverage in future funding
As I often tell clients:
“Owning your company is power — but owning the brand is leverage.”
Common Misconceptions
1️⃣ “Anyone can file — the filer is the owner.”
Not always. The filer must have genuine ownership or intended use.
2️⃣ “Trademark ownership follows shareholding.”
No. IP ownership depends on whose name is on the application — not equity percentage.
3️⃣ “Founders can register jointly.”
Possible, but joint ownership complicates future assignments. Prefer a single entity.
4️⃣ “Only running businesses can file trademarks.”
False. You can file under “proposed to be used” even before launch.
Related Articles from CSatWork
- How to Register a Trademark in India: Expert Guide
- Understanding Trademark Classes in India (with Everyday Examples)
- Common Mistakes Startups Make in Choosing a Brand Name
FAQs
1. Can I apply for a trademark before launching my startup?
Yes, under “proposed to be used” category.
2. Can a foreign company apply for a trademark in India?
Yes, through an Indian agent or address for service.
3. Can a founder personally own IP and license it to the company?
Yes, with a written license agreement and compliance disclosures.
4. Can two founders jointly own a trademark?
Legally yes, but it complicates control and licensing. Avoid unless absolutely necessary.
Final Word
Filing your trademark in the right name isn’t a clerical detail — it’s a governance decision that defines who controls your brand, revenue, and long-term power.
If you’re a founder, think strategically.
Registering under your company aligns with compliance and funding; holding it personally gives leverage and financial flexibility.
Both can work — the key is structure, transparency, and timing.
“In business, ideas can be shared — but trademarks define who truly owns them.”
About the Author
Prashant Kumar is a Company Secretary, Published Author, and Partner at Pratham Legal, a full-service Indian law firm advising on corporate, regulatory, and intellectual property matters.
He has filed and managed thousands of trademark applications, structured IP ownership for startups, and handled licensing, assignment, and due diligence matters for funded companies.
For expert guidance on trademark filing, ownership structuring, or IP strategy, contact:
📞 +91-9821008011
📧 prashant@prathamlegal.com
