DTI Business Name Registration & Verification in the Philippines: A Complete Legal Guide
(Updated as of 24 June 2025)
Important note – This material is for informational purposes only and does not constitute legal advice. Consult a Philippine lawyer or the Department of Trade and Industry (DTI) for case-specific guidance.
1. Policy Rationale & Overview
| Why DTI registers business names | Governing authority |
|---|---|
| Consumer & creditor protection – prevents “passing-off” and fraud. | Republic Act No. 3883 (Business Name Law), as amended by RA 863 (1953) and RA 4147 (1964) |
| Formalizes sole-proprietorships – prerequisite for BIR registration, bank accounts, LGU permits. | DTI Department Administrative Order (DAO) 18-07, s. 2018 – Revised IRR |
| Creates a public registry searchable via the Business Name Registration System–Next Generation (BNRS Next Gen). | Civil Code (Art. 37, trade names) and IP Code (RA 8293) – supplemental rules on trade names & trademarks |
Unlike SEC registration (for partnerships/corporations) or IPOPHL trademark protection, a DTI Business Name (BN) certificate only:
- identifies the sole proprietor and territorial scope;
- does not grant exclusive trademark rights or a license to operate; and
- lasts five (5) years, renewable.
2. Eligibility & Name-Formulation Rules
Who may register?
- Filipino citizens aged ≥ 18.
- Foreign nationals only if they hold a Certificate of Authority under special laws (e.g., Foreign Investments Act) and the proposed activity is not partly/wholly reserved for Filipinos.
Territorial scopes & fees (DAO 18-07 Annex “A”):
| Scope | Covers | Basic fee (₱) |
|---|---|---|
| Barangay | Single barangay | 200 |
| City/Municipality | One city or municipality | 500 |
| Regional | One region | 1 000 |
| National | Entire Philippines | 2 000 |
Add ₱30 documentary stamp tax.
Name-style rules (Sec. 5, DAO 18-07)
- Format: Dominant Element + Descriptor (e.g., “Juana’s Kakanin Shop”).
- Prohibited: Names identical/confusingly similar to existing BNs, registered marks, or corporate names; misleading geographic references (“Manila Logistics” if located in Cebu); words restricted by law (“Bank,” “University,” “National,” government agencies); obscene or contrary to public order.
- Optional: A BN may include the owner’s surname, but cannot consist solely of it.
3. Registration Procedure (BNRS Next Gen)
| Step | Key actions | Typical time/cost |
|---|---|---|
| 1. Online name search | Go to bnrs.dti.gov.ph → Register New Business Name → check availability. | Free |
| 2. Application form | Encode applicant details, business address, scope, industry code (PSIC). | ~10 min |
| 3. Payment | Real-time via Debit/Credit, GCash, Maya; or over-the-counter within 7 calendar days. | Based on scope |
| 4. Issuance of Certificate | E-Certificate (PDF) emailed + downloadable within BNRS account; contains QR code & Reference Code. | Immediate upon payment |
| 5. Post-registration | Print certificate; register with BIR (Form 1901) within 30 days; secure local permits (barangay, mayor’s) before operations. | Varies |
Walk-in filing at a DTI Negosyo Center is still allowed but discouraged since 2020.
4. Verification & Due-Diligence Tools
| Purpose | How to verify | What you will see |
|---|---|---|
| Authenticity check (third party) | BNRS Next Gen → Search Business Name → input full BN or Reference Code (e.g., 2023-12345678). | Status (Active/Expired/Cancelled), owner, territorial scope, certificate no., validity dates. |
| Certificate validation | Scan the embedded QR code on the PDF/printed certificate. | Redirects to DTI record with real-time status. |
| Owner self-service | BNRS account → Transactions to reprint certificate, request Certificate of No Opposition, or renewal. | Downloadable copies, official receipts, audit trail. |
| Historical check | Email bnrshelpdesk@dti.gov.ph or file FOI request for archival records beyond BNRS cut-off (~2015). | Certified true copy (CTC) upon payment of ₱100/page. |
Tip: Lawyers and creditors typically cross-match BNRS data with SEC (corporations/partnerships) and IPOPHL’s Trademark Search to spot conflicts.
5. Renewal, Amendment, Cancellation
| Action | Regulatory details |
|---|---|
| Renewal | File online 180 days before up to 90 days after expiry (surcharge after expiration). New 5-year term counts from original expiry date. |
| Change of business address / scope | BN certificate cannot be “amended.” Owner must file a new BN and let the old one lapse. |
| Transfer/assignment | Prohibited. A BN is personal to the registrant; selling the business requires the buyer to get a new BN. |
| Voluntary cancellation | File notarized request via BNRS; no refund of fees; DTI updates public ledger. |
| Administrative cancellation | DTI may motu propio or upon complaint cancel a BN for: (a) misrepresentation, (b) prohibited name, (c) violation of other DTI issuances, or (d) trademark infringement. |
6. Legal Consequences of Non-Compliance
| Violation | Penalty (RA 3883 §7) |
|---|---|
| Using an unregistered or cancelled BN, or falsely holding a registration | Fine ₱5 000 – ₱20 000 and/or imprisonment 6 months – 5 years at court’s discretion. |
| Using a confusingly similar BN (possible unfair competition) | Civil action under Art. 28, Civil Code or RA 8293 (IP Code) – damages, injunction, destruction of signs. |
| Misuse of restricted words (“Bank,” “Finance”) | In addition to DTI penalties, violations of Bangko Sentral or CHED charters, etc. |
| Data-privacy breach (unauthorized publication of BN registrant’s personal info) | Fines & imprisonment under RA 10173 (Data Privacy Act). |
7. Interaction with Other Regulatory Regimes
- BIR – A valid BN certificate is a pre-requisite for the Certificate of Registration (Form 2303).
- Local Government Code – LGUs require the BN for mayor’s permits but can impose additional zoning & sanitary clearances.
- Special industries (e.g., pawnshops, lending companies, food establishments) need secondary licenses from BSP, SEC, FDA, etc. A BN does not unlock these automatically.
- IPOPHL Trademarks – Registering a trademark is separate and provides stronger nationwide exclusivity; advisable even if you hold a National-scope BN.
- Foreign Investments Act (RA 7042) – Foreign sole proprietors must secure a Certificate of Authority and comply with foreign investment negative lists before approaching DTI.
- Anti-Dummy Laws – Prohibit nominal Filipino owners fronting for foreign interests; DTI may require an Affidavit of Filipino Ownership during BN processing when red flags appear.
8. Practical Tips & Common Pitfalls
| 🗹 Do | ✖️ Avoid |
|---|---|
| Run multiple spelling variants in the BNRS search to ensure uniqueness. | Assuming your Personal Name alone (e.g., “Maria Cruz”) will be approved – it must have a descriptor. |
| Secure the National scope at the outset if you will expand online; upgrading later means a new BN & fees. | Advertising on social media before BN approval; penalties apply for operating under an unregistered name. |
| Print at least two hard copies of the certificate (with QR code) – one for display, one for bank/BIR. | Treating the BN certificate as a substitute for a mayor’s or FDA license – it is not. |
| Calendar the expiry date plus 6-month renewal window; DTI sends e-mail notices but technical glitches happen. | Letting the BN lapse, then attempting retroactive renewal beyond 90 days – DTI will force a fresh filing, and someone else could grab the name. |
| If you plan to franchise, register the BN owner’s logo/brand as a trademark – franchisors often require both. | Transferring your BN to a buyer; the law disallows assignment. The buyer must file a new BN. |
9. Step-by-Step Verification Checklist (for lawyers & financiers)
- Obtain the BN Reference Code from the proprietor or the certificate.
- Search BNRS → confirm status “Active”.
- Check expiry date – flag if within 12 months (renewal risk).
- Confirm territorial scope matches actual operations; red-flag if a Barangay-scope BN is used for nationwide e-commerce.
- Cross-reference with SEC, BIR, LGU databases; inconsistency may signal fraud.
- Scan QR code – should land on the same BNRS entry.
- Download & archive the e-Certificate and Official Receipt in due-diligence files.
10. Future-Facing Developments (watch list)
- E-Notarization integration – DTI is piloting one-click notarized affidavits for foreign applicants (2025 roadmap).
- Inter-agency database sync – planned link between BNRS, BIR’s ONETT, and LGU’s business-permitting portals to cut duplicate submissions.
- Blockchain seal – DTI exploring distributed ledger for tamper-proof certificates (MoU signed Q1 2025).
- Tiered renewal fees – proposed DAO would hike National-scope renewals but waive fees for certified Barangay-Micro-Business Enterprises (BMBE).
11. Key Takeaways
- Registering a business name is legally mandatory for every Philippine sole proprietorship using a name other than the owner’s full real name.
- The BNRS Next Gen platform has made both registration and verification entirely digital, enabling real-time due diligence.
- A BN certificate does not equate to a permit, license, or trademark – think of it as an “ID card” for your business persona.
- Verification is simple (public search + QR code) and should be standard practice in contracts, lending, and supplier onboarding.
- Failure to register—or using an expired or misleading BN—carries criminal penalties and exposes the proprietor to civil damages.
Need personalized assistance? Engage a Philippine corporate & tax lawyer or visit the nearest DTI Negosyo Center for walk-through support.