In the Philippine entrepreneurial landscape, the first step toward legitimizing a "solopreneurship" or a micro, small, and medium enterprise (MSME) is the registration of a Business Name (BN) with the Department of Trade and Industry (DTI).
Governed primarily by Act No. 3883, also known as the Business Name Law, this process ensures that an individual has the exclusive right to use a specific name for their business operations within a specific jurisdiction.
1. Legal Nature of DTI Registration
It is crucial to distinguish a DTI registration from a SEC registration.
- DTI Registration: Applies strictly to Sole Proprietorships. It does not create a separate juridical personality; the owner and the business are legally one and the same.
- Purpose: The primary intent of the Business Name Law is to provide public notice of the identity of the person behind a business, protecting consumers and providing a layer of accountability.
2. Eligibility and Territorial Scope
Any Filipino citizen at least 18 years of age may register a business name. Foreign nationals may also register, provided they comply with the Foreign Investments Act of 1991 and other relevant specialized laws.
Territorial Options
When registering, you must choose the scope of your business name’s protection. The registration fees vary depending on this "territoriality":
| Scope | Coverage | Fee (Excluding DST) |
|---|---|---|
| Barangay | Protection within a specific barangay | ₱200 |
| City / Municipality | Protection within the specific city/town | ₱500 |
| Regional | Protection within a specific region | ₱1,000 |
| National | Protection across the entire Philippines | ₱2,000 |
Note: A Documentary Stamp Tax (DST) of ₱30.00 is typically added to these fees.
3. Requirements for Registration
The DTI has significantly streamlined the process, particularly through the Business Name Registration System (BNRS).
For New Applications:
- Proposed Business Name: Must comply with DTI naming guidelines (see Section 4).
- Owner’s Information: Full name, address, and date of birth.
- Government-Issued ID: A valid ID (e.g., Passport, Driver’s License, UMID, PRC ID).
- TIN (Tax Identification Number): While often optional during the initial online application, it is required for full tax compliance.
For Foreign Investors:
- Certificate of Authority from the SEC (if applicable).
- Alien Certificate of Registration (ACR).
4. Naming Guidelines and Restrictions
The DTI is strict regarding what can be used as a business name. A name will be rejected if it is:
- Identical or Confusingly Similar: To an existing registered name.
- Generic: e.g., "The Sari-Sari Store" or "Auto Repair Shop."
- Prohibited by Law: e.g., names using "State," "United Nations," or "ASEAN."
- Offensive: Names that are immoral, scandalous, or contrary to public policy.
- Purely Descriptive of Quality: e.g., "The Best Siomai in Town."
5. Step-by-Step Registration Process
Step 1: Name Verification
Check the BNRS Website to see if your desired name is available. It is best to have at least three backup names.
Step 2: Application Entry
Fill out the online application form. Ensure that your Business Scope matches your actual intended area of operation.
Step 3: Payment
Payments can be made via digital wallets (GCash/Maya), credit/debit cards, or over-the-counter at DTI Regional or Provincial offices. Payment must generally be settled within seven (7) calendar days from the date of application.
Step 4: Certificate Issuance
Once payment is confirmed, the Certificate of Business Name Registration is issued. You can download and print this immediately.
6. Validity and Renewal
A DTI Business Name Registration is valid for five (5) years from the date of registration.
- Early Renewal: Within six (6) months before the expiration date.
- Regular Renewal: Within three (3) months after the expiration date.
- Grace Period: There is a six-month grace period after expiration, but late filings are subject to a ₱100 surcharge. If not renewed within this period, the name is automatically cancelled and becomes available to the public.
7. Important Post-Registration Obligations
Registration with the DTI is only the first step. To legally operate a business in the Philippines, a sole proprietor must also:
- Secure a Barangay Clearance.
- Obtain a Mayor’s / Business Permit from the Local Government Unit (LGU).
- Register with the Bureau of Internal Revenue (BIR) for tax purposes and receipts.
- Register with SSS, PhilHealth, and Pag-IBIG if the business has employees.
Would you like me to draft a checklist of the specific documents you'll need for the next step—the Mayor's Permit application?