This scenario is unfortunately common in the Philippines: an employer (or former employer) surreptitiously registers a business — usually a sole proprietorship with the DTI or sometimes a corporation with the SEC — using your name, SSS, TIN, or other personal details without your knowledge or valid consent. The business then incurs debts, unpaid SSS contributions, withholding taxes, supplier obligations, bank loans, or BIR deficiencies. Creditors, collection agencies, or the BIR eventually come after you personally because, on paper, you are the “owner.” You start receiving demand letters, lawsuits, text threats, or visits from collectors.

This is a form of identity theft and fraud. You are not liable for the debts, but you must act decisively to stop the harassment, clear your name, and hold the perpetrator accountable. Below is a comprehensive guide to every available remedy under Philippine law as of 2025.

1. Immediate Defensive Actions (Stop the Bleeding)

a. Secure an NBI Clearance and Police Report
Go to the NBI Cybercrime Division or your local police station and execute an affidavit detailing the unauthorized use of your identity. This creates an official record that you are a victim of identity theft. The NBI can issue a “Certificate of Identity Theft” that is extremely useful when dealing with banks, credit bureaus, and courts.

b. Notify the Credit Information Corporation (CIC) and Credit Bureaus
Under Republic Act No. 9510 (Credit Information System Act), you have the right to dispute inaccurate negative information. Submit your police report/NBI certificate plus an affidavit. TransUnion, CIBI, and CRIF will be required to flag or remove the derogatory records caused by the fraudulent business.

c. Send a Formal Demand Letter to Known Creditors
Through a lawyer, send a cease-and-desist letter attaching your police report and affidavit stating that the business was registered without your authority. Creditors who continue harassment after this can be sued for violation of Republic Act No. 10175 (Cybercrime Prevention Act – online libel/harassment) or Republic Act No. 9995 (unjust vexation).

d. File a Complaint with the BIR (if tax assessments arrive)
Submit an Affidavit of Non-Ownership/Unauthorized Use of Identity together with the police report. The BIR Revenue District Office can cancel or transfer the tax liabilities to the real owner once fraud is established. Cite Revenue Memorandum Circular No. 59-2017 and related BIR issuances on dummy taxpayers.

2. Cancellation of the Fraudulent Business Registration

For DTI-Registered Sole Proprietorships (most common case)

File a verified Petition for Cancellation of Business Name Registration with the DTI Regional/Provincial Office where the business was registered or with the DTI Central Office (Fair Trade Enforcement Bureau). Grounds: fraudulent registration, use of forged documents, misrepresentation.
Attach:

Your affidavit of non-consent/forgery
Police/NBI report
Comparison of genuine vs. fraudulent signatures (if applicable)
Proof that you were an employee (payslips, contract, etc.)

DTI can cancel the registration within 30–60 days and issue a Certification of Cancellation, which is crucial evidence in court.

For SEC-Registered Corporations/Partnerships

File a verified complaint with the SEC Company Registration and Monitoring Department (CRMD) for revocation of registration on the ground of fraud in the procurement of the certificate of incorporation (Section 20(i), Revised Corporation Code).
If you were listed as an incorporator or officer without consent, the SEC can revoke the registration and delete your name from the General Information Sheet (GIS).

3. Criminal Complaints Against the Employer/Perpetrator

File these at the Office of the City/Provincial Prosecutor (not directly in court):

a. Estafa through deceit (Article 315(2)(a), Revised Penal Code)
The employer deceived you into surrendering IDs or signing documents under pretense of employment requirements, then used them for a different purpose.

b. Falsification of public documents (Article 172 in relation to Article 171, RPC)
DTI/SEC/LGU permits, BIR Form 2303, SSS forms, etc., are public documents. Forging your signature or submitting false information is falsification.

c. Use of fictitious name or concealing true name (Article 178, RPC)
If the employer used your name to hide their own identity.

d. Violation of Republic Act No. 10173 (Data Privacy Act of 2012)
The employer collected your personal data for employment purposes (legitimate purpose) but processed it for an incompatible purpose (business registration) without consent. File this with the National Privacy Commission (NPC). Penalties can reach ₱5 million and imprisonment up to 7 years. The NPC can also order the destruction of the fraudulent records.

e. Violation of Republic Act No. 10175 (Cybercrime Prevention Act)
If the registration was done online (DTI e-registration or SEC eSPARC), the act constitutes computer-related identity theft (Section 4(b)(3)).

These cases are winnable when supported by a clear employment relationship and proof that you never benefited from the business.

4. Civil Action for Damages and Injunction

File a civil case (independent of criminal cases) for:

a. Injunction + Damages + Declaration of Nullity of Business Registration
Under Rules of Court and Articles 19, 20, 21, 26, and 32 of the Civil Code (abuse of right, acts contrary to law, human relations, violation of personality rights).
Prayer:

Declare the business registration null and void ab initio
Permanent injunction against use of your name
Moral damages (₱200,000–₱1,000,000+ depending on evidence of distress)
Exemplary damages
Attorney’s fees

b. Damages for Violation of Data Privacy Act
Section 16 of RA 10173 expressly grants the data subject the right to file a civil action for damages.

Venue: Regional Trial Court of your residence or where the employer is located.

5. Special Remedies if a Bank Loan Was Obtained Using Your Name

File a complaint with the Bangko Sentral ng Pilipinas (BSP) Consumer Protection Department for identity theft. Banks have been ordered by the BSP to write off loans obtained through fraudulent use of identity when supported by police/NBI reports.

6. Practical Timeline of Actions (Recommended Sequence)

Week 1–2: Police blotter → NBI Cybercrime affidavit → Demand letters to known creditors
Week 3–4: DTI/SEC cancellation petition + NPC complaint
Month 2–3: File criminal complaints at Prosecutor’s Office
Month 3–6: File civil case for damages and injunction
Ongoing: Dispute negative credit records with CIC

7. Preventive Lessons (for Others Reading This)

Never surrender original IDs or sign blank forms
If asked for ID copies, write “FOR EMPLOYMENT PURPOSES ONLY – NOT FOR BUSINESS REGISTRATION” across the photocopy
Regularly check your BIR TIN status (bir.gov.ph), DTI business name search, and SEC company search using your name
Monitor your Credit Information Corporation report annually (free once a year)

You are the victim, not the debtor. Philippine courts and government agencies have consistently ruled in favor of genuine identity-theft victims in these cases when proper documentation is presented. Act quickly, document everything, and engage a competent lawyer — the employer who did this to you almost certainly did it to others, and the evidence trail is usually clear. You will not only clear your name but can also obtain substantial damages.