1) What “unregistered business” can mean in Philippine law

In the Philippines, “registration” happens in layers. A business can be “unregistered” in different ways:

Not legally organized/recorded with the correct registering agency
- Sole proprietorship: business name registration is typically with DTI (Business Name registration).
- Partnerships and corporations: registration is with the SEC.
- Cooperatives: registration is with the CDA.
No local authority to operate
- A business generally needs a Mayor’s/Business Permit from the city/municipality (through the BPLO), plus barangay and other clearances depending on the activity.
Not registered with the tax authority
- BIR registration (Tax Code/NIRC) for taxpayers engaged in trade/business/profession, including registration of books and authority to print/use invoices/receipts, and filing/paying the correct taxes.

Because you asked specifically about DTI and BIR, the key point is:

DTI is mainly about business name registration (for sole proprietors) and certain trade/consumer enforcement functions.
BIR is about tax registration, invoicing/receipting, and tax compliance.

2) When DTI is the right place to report (and when it isn’t)

A. Situations where a DTI report makes sense

Reporting to DTI is most relevant when the issue involves DTI’s scope, such as:

A sole proprietor using a business name without DTI Business Name registration
- Example: a shop publicly operating under a distinctive name but the owner has not registered that name as a DTI business name (for sole proprietorship).
Misrepresentation involving DTI registration
- Example: a seller claims “DTI registered” to boost credibility but cannot produce a valid certificate, or is using someone else’s registration.
Consumer-related violations
- Even if the business is unregistered, DTI can still act on many consumer protection concerns (misleading labeling, unfair/deceptive sales acts, warranty issues, price tag requirements, etc.) if your complaint is consumer-facing.

B. Situations where DTI is not the main agency

If the business appears to be a corporation/partnership, DTI is not the primary registrar (SEC is). If the core issue is no Mayor’s permit, the LGU is the lead enforcer. If the core issue is no tax registration, no receipts, or tax evasion, BIR is the lead agency.

DTI can still receive information, but the most effective enforcement often comes from the correct primary agency.

3) When BIR is the right place to report

BIR is appropriate when the business is suspected of:

Operating without BIR registration
- No Certificate of Registration (commonly known as COR), no registered books, no registration of business taxes.
Not issuing official receipts/invoices
- Issuing handwritten “acknowledgment receipts” that are not BIR-registered, or not issuing anything at all.
Using fake/expired/unregistered receipts or invoices
- Or using invoices of a different business entity.
Underdeclaration or non-filing
- Large volume of sales with no apparent filing, especially where there are visible signs of sustained operations.
Online selling/business operations with no tax registration
- Social media shops, live sellers, online service providers operating continuously and accepting payments but showing no compliance indicators.

4) What to prepare before reporting (DTI and BIR)

Well-prepared reports are taken more seriously and are easier to verify.

A. Essential details

Business name used publicly
Exact location (full address and landmarks)
Nature of business (retail, food, services, online selling, etc.)
Owner/operator information if known (names on signage, payment accounts, delivery slips, etc.)
Operating schedule (days/hours; helpful for verification)

B. Evidence checklist (use what you can get legally)

Photos of store signage, menu/price list, business cards, flyers
Screenshots of online pages, listings, livestream schedules, promos, payment instructions
Proof of transactions: order confirmations, delivery slips, chat logs showing sale terms
Proof of payments: bank/e-wallet reference numbers, invoices from couriers
Copies/photos of any receipts/invoices they issued (or evidence they refused to issue one)
Names on GCash/bank accounts or pickup/delivery documents (if visible and relevant)

Tip for online evidence: Save screenshots showing date/time if possible. Keep originals and avoid altering images.

C. Keep your reporting factual

Stick to what you personally observed and what your documents show:

“The store issues only handwritten acknowledgments” (with photo)
“The page accepts payments daily and advertises regular sales” (with screenshots) Avoid public accusations online; put allegations in the proper report to reduce defamation risk.

5) How to report to DTI (practical, Philippine process)

A. Choose the correct DTI office

DTI complaints and enforcement are handled through DTI regional/provincial/city offices (and relevant DTI enforcement units depending on the issue). For most people, the practical route is the DTI office covering the business location.

B. Decide what kind of DTI report you’re making

Business Name / Misrepresentation report
- Focus: “Operating under a business name / claiming DTI-registered without proof.”
Consumer complaint
- Focus: “I bought X, the seller did Y,” plus any unregistered/trade practice details.

C. Prepare a written complaint or report (recommended format)

A clear report typically includes:

Your name and contact details (or note if you request confidentiality)
Details of the business (name used, address, owner/operator if known)
A timeline of facts (dates, what happened, how you found out)
The specific concern (unregistered BN use / DTI misrepresentation / consumer violation)
Attachments list (photos, screenshots, receipts)

If you’re primarily flagging a BN/misrepresentation issue, frame it as:

“This entity is publicly using the name ______ in trade and/or claiming DTI registration, but cannot show valid proof, and the public may be misled.”

D. Filing and what typically happens next

DTI may evaluate whether the matter is within its jurisdiction.
If it’s consumer-related, DTI may call for mediation/conciliation and require the business to respond.
If it’s a BN/misrepresentation/enforcement-type matter, DTI may do verification and may coordinate with other agencies where appropriate.

6) How to report to BIR (practical, Philippine process)

A. Identify the likely BIR jurisdiction (RDO-based)

BIR enforcement and taxpayer registration are organized by Revenue District Offices (RDOs). The most effective reports usually go to the RDO covering the place where the business operates.

If you can’t identify the RDO confidently, you can still submit to the nearest BIR office and clearly state the business address so they can route it.

B. Choose the form of submission

BIR can act on:

A formal complaint (often supported by a sworn statement/affidavit), or
Information/lead for verification (especially useful where you have evidence like non-issuance of receipts).

A sworn complaint is stronger if you are willing to be identified and, if necessary, testify. An informational report may be used for surveillance/verification, but anonymity can limit follow-through in some cases.

C. What to include in a BIR report

Your report should make it easy to verify tax-related violations:

1) Business identifiers

Name used, address, branch details
Online page links/handles (if applicable)

2) Indicators of non-registration / non-compliance

“No official receipts/invoices issued” (attach transaction proof)
“Only handwritten acknowledgment” (attach photo)
“Regular operations and sales” (attach screenshots/ads)

3) Transaction examples

Dates, amounts, method of payment
Names on payment accounts if relevant to identification
Any delivery/proof-of-service records

D. Common BIR enforcement paths after a credible report

Depending on what is found, BIR actions may include:

Verification activities (e.g., field checks or compliance monitoring)
Registration enforcement (requiring the taxpayer to register properly)
Assessment of taxes due with penalties/surcharges/interest
Administrative enforcement for invoicing/receipting violations (including possible closure actions in appropriate cases under the Tax Code framework)
Criminal investigation/prosecution in more serious, willful cases

The specific track depends on scale, evidence, and whether the violations are continuing.

7) Confidentiality, anonymity, and practical risks

A. Can you report confidentially?

Government offices commonly treat complainant information with discretion, but due process may require disclosure if a case becomes adversarial and your testimony is needed. If you request confidentiality, state it explicitly in writing.

B. If you report anonymously

Anonymous tips can still be useful for verification, especially when you provide:

clear address, business identifiers, and strong documentary evidence. But if enforcement requires a complaining witness, anonymity can reduce options.

C. Avoid “self-help enforcement” or public shaming

Publishing accusations can create defamation exposure and may compromise investigations. Put evidence into the official report and keep your statements factual.

8) Special notes for online sellers and home-based businesses

Online and home-based operators often leave a strong evidence trail. Useful items include:

screenshots of storefront pages showing active selling
order forms, checkout confirmations, chat threads establishing price and payment
payment references and delivery confirmations
refusal messages when you request an official receipt/invoice

For services (freelance, clinics, salons, repair services), evidence can include:

quotations, service agreements, appointment logs, before/after photos
proof of payment and any “receipt” they issued

9) A practical template you can adapt (DTI or BIR)

Subject: Report of Unregistered Business / Non-Compliance – [Business Name Used] – [Address]

Business Details
- Name used:
- Address/location:
- Nature of business:
- Online page/handle (if any):
- Owner/operator (if known):
Summary of Facts
- On [date], I observed/engaged in a transaction with the business.
- The business operates regularly (e.g., daily sales/posted schedules).
- The business [did not issue official receipt/invoice / issued only handwritten acknowledgment / claimed DTI registration without proof].
Basis for Report
- For BIR: indicators of non-registration/non-issuance of valid receipts/invoices and ongoing business activity.
- For DTI: public use of business name / misrepresentation regarding DTI registration / consumer-related violations (if applicable).
Evidence Attached
- Photos of signage (Annex A)
- Screenshots of online selling activity (Annex B)
- Proof of transaction/payment (Annex C)
- Copy/photo of receipt or acknowledgment (Annex D)
Confidentiality Request (optional)
- I request that my identity and personal information be treated confidentially to the extent allowed by law.

Name / Signature / Contact details Date

10) Key takeaways

DTI is most useful when the issue involves sole proprietorship business name registration, misrepresentation about DTI registration, or consumer/trade concerns within DTI’s enforcement scope.
BIR is the main agency for tax registration and receipting/invoicing violations.
The strongest reports are location-specific, evidence-backed, and fact-based, with clear transaction examples and attachments.