How to register your business name in the Philippines involves several steps, one of the most important being the registration of your business name. This legal requirement ensures that your business is recognized and protected under Philippine law, and it allows you to legally operate your enterprise within the country.
What is a Business Name?
A business name is any name or designation other than the owner’s name that is used in the course of business. It identifies the business for consumers and distinguishes it from competitors.
In the Philippines, the Department of Trade and Industry (DTI) is responsible for registering the names of sole proprietorships, while the Securities and Exchange Commission (SEC) handles corporations and partnerships.
This guide focuses on how to register a business name for a sole proprietorship through the DTI.
Step 1: Check for Name Availability
Before anything else, you need to check whether your chosen business name is available. This ensures that no other businesses are using the same or a similar name.
You can check name availability online through the DTI’s Business Name Registration System (BNRS): https://bnrs.dti.gov.ph.
Tips for Choosing a Business Name:
- Unique and Distinct: Avoid using common terms or names similar to existing businesses.
- Descriptive: Your business name should represent the nature of your business.
- No Special Characters: Stick to letters and numbers; avoid special characters.
Step 2: Prepare Required Information
Once you have a business name that’s available, prepare the following details for registration:
- Owner’s full name and contact information.
- Business location.
- Description of the business activity.
- Type of business (e.g., retail, service, etc.).
You will also need to choose a territorial scope for your business. This defines the area where your business name will be protected:
- Barangay level.
- City/Municipality level.
- Regional level.
- National level.
Step 3: Register Your Business Name Online or In-Person
You can register your business name through one of two methods: online via BNRS or in-person at a DTI office.
Online Registration:
- Visit the DTI BNRS portal at https://bnrs.dti.gov.ph.
- Select “New Registration” and provide the required information.
- Choose your territorial scope.
- Pay the registration fee (more details below).
- After payment, you will receive your Certificate of Business Name Registration via email.
In-Person Registration:
- Go to your nearest DTI office or Negosyo Center.
- Fill out the Business Name Registration Form.
- Submit the form along with a valid ID.
- Pay the registration fee.
- You will receive your certificate immediately after the process is completed.
Step 4: Pay the Registration Fee
The registration fee varies depending on the territorial scope of your business:
- Barangay level: ₱200
- City/Municipality level: ₱500
- Regional level: ₱1,000
- National level: ₱2,000
Additional fees for documentary stamp tax (around ₱30) also apply.
Step 5: Claim Your Certificate of Business Name Registration
After completing the registration and payment process, you will be issued a Certificate of Business Name Registration, either electronically (for online applicants) or as a printed copy (for in-person applicants).
This certificate is valid for five years and needs to be renewed upon expiration.
Step 6: Additional Registrations and Requirements
Once your business name is registered, you still need to comply with other legal requirements before starting operations:
- Barangay Clearance: Secure this from the local barangay where your business is located.
- Mayor’s Permit/Business Permit: Obtain this from the City or Municipality’s Business Permit and Licensing Office.
- Tax Registration (BIR): Register your business with the Bureau of Internal Revenue (BIR) to obtain a Tax Identification Number (TIN) and to comply with tax obligations.
Benefits of Registering Your Business Name
- Legal Protection: Prevents others from using the same name in your chosen territorial scope.
- Access to Loans and Government Programs: Registration is often required to access government assistance programs and business loans.
- Credibility and Trust: A registered business name builds credibility with customers and suppliers.
Conclusion
Registering your business name is a crucial first step in setting up a legally compliant business in the Philippines. Whether you choose to register online or in person, the process is relatively straightforward and ensures that your business is formally recognized by the government. After completing this, you can focus on building and growing your business with confidence.
