Long lines of business name egistrants are often observed at the DTI Offices and Negosyo Centers during January when businessmen go to the City or Municipal LGUs for their business licenses. This is because business name is as important as the name of the businessman.
Republic Act 3883 otherwise known as the Business Name Law requires solely owned businesses to register any name other than the owner’s true name with the Department of Trade and Industry. This is entirely different and separate from securing a business permit from the local government unit of which the establishment is located. Business name is the identity of a business which describes its nature and purpose, while a business permit is a license to operate.
A sole proprietor may register his/her business on any working day of the year at any DTI Office near him/her. Tagged as a simple transaction, any Filipino citizen, non-Philippine national who has obtained a certificate of Registration/Certificate of authority to engage in Business pursuant to RA 7042 or the Foreign Investment Act or refugee or stateless person who has been issued a written recognition from the Department of Justice and at least 18 years of age may register. It only takes filling up of the DTI-prescribed application form and the presentation of one government-issued identification card/document such as LTO driver’s license, SSS, BIR TIN, Philhealth, passport, etc. For those who would be transacting through their representatives, an authorization letter with the IDs of both owner and representative must be presented.
To ease up on queuing, lining up, at the time of processing business permits, sole proprietors may opt to register/renew its business name online. Just log on to bnrs.dti.gov.ph and the online system provides a user-friendly process to facilitate registration.
The registrability of the business name is subject to the following: Dominant Portion includes word, group of words or combination of letters and numerals and the Descriptor composed of word/s describing the nature of business based on the Philippine Standard Industrial Classification (PSIC). Examples: Tomas Rice Farm, Chedeng Shoe Manufacturing.
Business Names which are not registrable include the following: those that connote activities that unlawful, immoral, scandalous (Sabungan Betting Place); suggestive of quality/class (Madel’s Best Partry Shop); registered trademarks, business name issued by any authorized government agency (Jollibee); composed of purely generic name (The Bakeshop); abbreviation of any nation, government entity of international organizations (UNESCO Repair Shop), among others.
Corresponding fees are dependent on the territorial scope of the business name: Barangay-P200; City/Munipality-P500; Regional-P1,000; and National-P2,000. A P30 documentary stamp shall be included in the fees. The validity of registration is 5 years. It is subject for renewal every 5 years. Non-renewal of the BN 6 months after its expiration would delist the name from the database thus, is subjected to new registration. May renew as early as 6 months prior to its expiration date.
Remember, a business without a name is a sign of no business. Register now, make your business known.**
