DTI Business Name Registration & Verification in the Philippines: A Comprehensive Legal Guide
1. Introduction
Operating under a business name that is neither your true name nor a corporate name requires registration with the Department of Trade and Industry (DTI). Registration is mandatory under Act No. 3883 (the “Business Name Law,” 1931, as amended by Act No. 4147 and R.A. 863) and implemented by a succession of DTI Department Administrative Orders (most recently DAO 18-07, s. 2018) and Memorandum Circulars. Non-compliance may expose the proprietor to fines, imprisonment, and administrative closure.
2. Key Legal Definitions
| Term | Statutory / Regulatory Definition | Practical Meaning |
|---|---|---|
| Business Name (BN) | Any name other than the owner’s true name under which a sole proprietor “conducts or transacts business” (Act No. 3883, §1). | The trading style printed on receipts, signage, e-commerce pages, etc. |
| Owner/Registrant | Natural person who assumes full civil & tax liabilities. | Sole proprietorship only; corporations & partnerships register with the SEC, not DTI. |
| BNRS Next Gen | The online system mandated by DAO 18-07 for end-to-end BN processing. | Accessible at bnrs.dti.gov.ph; physical walk-in filing was phased out nationwide in 2021. |
3. Who Must Register
- Filipino citizens doing business under a trade style.
- Foreign nationals with a resident visa and a Certificate of Registration for Sole Proprietorship (CRSP) issued by DTI’s Bureau of Trade Regulation & Consumer Protection (BTRCP).
- Refugees/Stateless persons recognized by the DOJ, subject to identical rules.
Exemptions:
- Professionals who issue receipts solely in their personal names (e.g., “Juan dela Cruz, CPA”).
- Corporations, partnerships, or cooperatives—these register a corporate name with the Securities and Exchange Commission (SEC) or CDA instead.
4. Territorial Scope & Corresponding Fees (Rule VII, DAO 18-07)
| Scope | Territorial Coverage | Basic Filing Fee* |
|---|---|---|
| Barangay | One barangay only | ₱ 200 |
| City/Municipality | Entire city or municipality | ₱ 500 |
| Regional | One administrative region | ₱ 1 000 |
| National | Entire Philippines | ₱ 2 000 |
*Add ₱ 30 documentary stamp tax + e-payment service charge (≈ 2 %). Registration is valid for five (5) years regardless of scope.
5. Name Availability & Prohibited Terms
DTI employs an automatic algorithmic screening plus manual review. Key prohibitions:
- Identical or Confusingly Similar to an existing BN, SEC corporate name, cooperative name, or trademark.
- Generic words alone (e.g., “Hardware,” “Sari-Sari Store”).
- Purely geographic terms (“Cebu Traders”) unless modified.
- Government, Bank, Finance, University, Foundation, Inc./Corp./Ltd. unless evidence of authority is presented.
- Offensive or contrary to morals.
- One-letter or one-digit names.
Tip: Conduct a free public BNRS search before filing and optionally cross-check on the IPOPHL trademark database to avoid future conflicts.
6. Documentary Requirements
| Applicant | Required Uploads (PDF/JPEG) |
|---|---|
| Filipino | (1) Valid government-issued ID; (2) Accomplished BN Application Form (online) |
| Foreigner | (1) Passport; (2) AEP or SWP if applicable; (3) CRSP from DTI; (4) Alien Certificate of Registration & I-Card |
| Refugee/Stateless | DOJ recognition documents |
No notarization is required; electronic attestation is deemed an “oath.”
7. Step-by-Step Online Registration Procedure
- Create/Log-in to DTI BNRS account (OTP sent to email/mobile).
- Propose the Business Name → system shows “Available/Not Available.”
- Complete Business Profile (scope, capital, address, TIN).
- Upload IDs and declare undertakings.
- Pay Online (GCash, Maya, Credit/Debit, LandBank Link.Biz, etc.).
- Receive Electronic Certificate of Business Name Registration (CBNR) by email within minutes. It bears a QR code whose scan leads to BNRS verification page.
- Print or save the PDF—this is your official proof for banks, BIR, LGU, and e-commerce platforms.
8. Verification & Authentication
A. Public Name Search Go to bnrs.dti.gov.ph → “Search” → type the BN. The system returns status (Active, Expired, Cancelled). Useful for due diligence or seller-verification on online marketplaces.
B. Certificate Validation Scan the QR code or manually input the Reference Code on the BNRS portal. A tamper-evident hash confirms authenticity; any mismatch flags a fake certificate.
9. Renewal, Amendment & Cancellation
| Action | Window/Effectivity | Requirements | Fees |
|---|---|---|---|
| Renewal | Open 180 days before & closes 90 days after expiry. Late renewal surcharge = 50 % base fee. Beyond that, the BN is permanently expired and re-application is required. | Same as original filing (auto-filled online) | Same as original fee + DST |
| Amendment (change address, capital, owner’s civil status) | Anytime during validity. Name changes not allowed—file a new BN. | Proof docs (marriage cert, lease, etc.) | ₱ 100 + DST |
| Cancellation | Voluntary request or DTI motu proprio (fraud) | Affidavit of cancellation | None |
10. Penalties for Non-Compliance
Under § 6, Act No. 3883 and DTI DAO 18-07:
- Criminal fine: ₱ 2 000 – ₱ 5 000 or
- Imprisonment: 6 months – 2 years, or both, at the court’s discretion.
- Administrative closure by the LGU’s Business Permits & Licensing Office.
- Contracts signed under an unregistered BN remain valid between the parties but may be unenforceable against third parties and may hinder bank account opening and BIR registration.
11. Interaction with Other Registrations
| Purpose | Governing Agency | Note |
|---|---|---|
| Corporate/Partnership name | SEC | Separate SEC reservation & registration. |
| Trademark protection | IPOPHL | BN registration ≠ trademark—does not confer exclusive IP rights. |
| Mayor’s / Business Permit | City/Municipality | CBNR is a pre-requisite. |
| BIR Registration (Form 1901) | BIR | Present CBNR; TIN must match proprietor. |
| Online Platforms | DTI Fair Trade Enforcement Unit often requires CBNR for seller accreditation (esp. Lazada, Shopee, TikTok Shop). |
12. Data Privacy & Record Retention
BNRS stores personal data under RA 10173 (Data Privacy Act). Certificates remain publicly searchable for the life of the BN + five years post-expiration. Proprietors may request redaction of sensitive personal info, but business name and municipality remain public as a matter of commercial transparency.
13. Recent & Upcoming Policy Updates
- MC 22-11 (2022): Disallowed the use of “Online,” “Dot-Com,” or “E-Commerce” unless the enterprise actually sells goods/services digitally.
- Planned DAO on Central Business Registry (CBR) (target implementation late 2025): Will integrate BNRS, SEC, BIR, and LGU permitting into a single one-stop portal, eliminating redundant data entry.
14. Practical Compliance Checklist
- Search BNRS for identical names → refine if “Not Available.”
- Verify you are choosing the correct territorial scope (up-scaling later requires a new BN).
- Prepare clear scanned IDs (≤ 2 MB each).
- Use personal email & mobile that you will retain for five years; all notices are electronic.
- Download & backup the CBNR immediately; lost certificates require ₱ 100 for a certified true copy.
- Register with BIR & LGU within 30 days from issuance to avoid local surcharges.
- Calendar renewal at least six months before expiry.
15. Conclusion
DTI Business Name Registration is the legal gateway to operating a sole proprietorship in the Philippines. It is compulsory, inexpensive, and fully online. Proper registration—and subsequent verification when dealing with others—protects the consuming public, facilitates market entry, and shields the proprietor from statutory penalties. While the certificate itself does not grant intellectual-property exclusivity, it remains a foundational compliance document for taxation, local permits, and banking. Staying vigilant about renewal deadlines, accurate disclosure, and consistent use of the registered name ensures uninterrupted legitimacy and smooth scaling of the business.
This article is based on Act No. 3883 as amended, DAO 18-07, and related DTI memoranda current as of June 18, 2025. It is intended for general guidance and does not substitute for formal legal advice.