Starting a business in Sri Lanka often begins with registering a private limited company (Pvt Ltd). For many entrepreneurs, this feels like a major milestone — and it is. But one common misunderstanding persists: assuming that registering a company name automatically gives full legal protection over that name or brand. In reality, company registration and trademark registration are two different processes, each with its own purpose and scope. Understanding this distinction is critical if you want to properly safeguard your brand in Sri Lanka.
What Does Company Registration Cover?
When you register a private limited company (Pvt Ltd) in Sri Lanka, you’re essentially registering your business as a legal entity with the Registrar of Companies. This gives your business legal recognition, allows you to open bank accounts, sign contracts, hire staff, and conduct operations under the company name.
However, the protection of your company name under this registration is limited. It only prevents another company from registering the exact same name as a business entity in Sri Lanka. It does not stop others from using your name, or something similar, as a brand, product name, logo, or domain name.
What Does a Trademark Protect?
A trademark, on the other hand, is what gives you exclusive legal rights to use your brand name, logo, slogan, or other identifiers in connection with specific goods or services. When you register a trademark with the National Intellectual Property Office (NIPO) of Sri Lanka, you gain the legal authority to prevent others from using a name or mark that is identical or confusingly similar to yours, even if they operate under a different company name.
This is especially important in industries where branding matters — such as mobile phones, fashion, food, cosmetics, or technology. If your business name is also your brand, trademark registration is the only reliable way to protect it in the marketplace.
Why Company Registration Alone Isn’t Enough
Let’s say you’ve registered your business as “AD ENTERPRISES (PVT) LTD”, and you distribute mobile phones and accessories. That company name will be protected as a registered business name, but someone else could legally start selling products under the brand name “AD Mobiles” or even use a logo similar to yours unless you have a registered trademark.
In other words, company registration helps you set up and operate legally, while trademark registration helps you protect your identity in the market.
What Happens If You Don’t Trademark Your Brand?
Without trademark protection, you run several risks:
- Brand Imitation: Competitors may copy or slightly modify your brand name to confuse customers.
- Legal Vulnerability: You may not have strong legal grounds to stop someone else from using your name unless it’s trademarked.
- Customer Confusion: Consumers may associate poor-quality products from a copycat brand with your business.
- Loss of Brand Value: As your business grows, your brand becomes more valuable — and harder to protect retroactively.
Conclusion: Register Both — and Early
If you’re serious about building and protecting a brand in Sri Lanka, registering a Pvt Ltd company is only step one. Registering a trademark is equally, if not more, important if your brand name is a key part of your business strategy.
The best approach is to handle both processes early — ideally when you’re starting out — so you can avoid legal complications down the road. It’s also worth consulting a legal or intellectual property professional to ensure your trademark strategy is sound and enforceable.
In the long run, protecting your brand is not just a legal necessity — it’s an investment in your business identity, customer trust, and long-term value.
