The best method to obtain freedom is to run a small business or online business. This assertion is debatable, but it makes sense because people opt to start their own business.
It’s a known fact that having a business of your own gives you the feeling of self-efficiency. It allows you to organize your time the way you want it to be and gives you the ability to create the commodities and services you desire. Also, it makes you capable of being responsible and inventive when it comes to making decisions.
As we move forward with this article, we will discuss How to Register your Business Name with DTI and other concerns related to such matters.
Why name a business?
So, what about a name, anyway? Come to think of it; it has a lot of weight in the corporate world. Because your company’s name is also its branding, it should stand out, and people can remember it easily. A company without a name is hardly a company since it lacks a distinct identity that customers can recall. Furthermore, two organizations with the same name may confuse potential clients, wasting all marketing efforts.
As a result, the Department of Trade and Industry (DTI) advises all entrepreneurs to get a Certificate of Registration from the DTI. If you’re a proprietor, you’ll need to register your new business with the DTI, in addition to coming up with a name.
What is the definition of a business name?
A business name would be any term, phrase, or title you use to identify your company. In technical terms, it is the word or words that your target users associate with your goods and services. Perhaps a franchised firm necessitates the creation of an individual registered trademark by the client.
Take, for instance, a typical Filipino would purchase Colgate at a sari-sari store. Then when questioned which Colgate he prefers to buy, he will respond primarily to the competitor’s brand instead. In this case, Colgate became such a mighty brand name that some even substituted the common term “toothpaste.”
How do you come up with a business name?
It would help if you first asked how to develop a business name to register before asking how to get DTI permission. Again, your business name will be your trade’s identification for the rest of your life, so think a hundred times what you will name your business.
A business name must include two parts, according to DTI:
First, words, a phrase, or a combination of letters and digits make up most of the text. And second, a descriptor is a word or a set of terms used to describe the nature of your company.
For instance, in the business name “Glenn’s Ihaw Ihaw,” the primary part is the word Ihaw Ihaw, which is a powerful recall for many. The descriptor is Glenn’s, which merely serves as the modifier of the primary term.
Filipinos’ inventiveness grew beyond only having a dominant and a description over time. Some people just coined a new term by combining two prevalent words. Filipinos came up with the funniest and distinctive names possible, thanks to their incredible sense of humor, from the name of a funeral parlor, Libing Things, to a noodle shop, Mami Pakyaw.
Why Should You Register Your Company Name with the DTI?
In the Philippines, you must register your business name. It is prohibited to use any name for a business other than the owner’s real name without first registering the business name with the DTI, according to the Business Name Law or the Republic Act 3883.
In a nutshell, obtaining your trade name gives you the legal and exclusive right to use it for its renewable validity every five years. This means that no other business can register or use your business name in the barangay, city or municipality, region, or country, depending on your business location coverage.
Nevertheless, business name registration with the DTI is only for sole owners and is not a license to operate a business because of that. You’ll need a business permit and other related documentation.
Who is eligible to apply for a DTI business license?
If you are interested in applying for DTI’s business name registration, you need to meet the succeeding requirements:
Must be 18 years of age and above; foreign nationals under 18 must submit proof that they come from a country with a lower legal age than 18.
Must be a Filipino national or, if not, a Foreign national possessing a Certificate of Sole Proprietorship Registration or Certificate of Authority to Conduct business in the Philippines.
And, for refugees and stateless people, by presenting your authorization letter as a business name applicant, valid ID, and other essential documents, a representative may file your application for DTI business registration.
Requirements for DTI Business Registration
Except for those who apply online, all applicants must download, print, and fill out two copies of the Business Name Registration Form and show one of the following valid IDs:
- Driver’s license
- PRC ID
- NBI Clearance
- Police Clearance (in ID form)
- Postal ID
- Voter’s ID
- OWWA ID
- Seaman’s Book
- IBP ID
- Senior citizen ID
- PWD ID
- Government office ID
- Validated state college/university ID
Depending on the application, additional documents are required:
For foreign nationals, the competent DTI office must issue an Alien Certificate of Registration and a Certificate of Registration for Sole Proprietorship or Certificate of Authority to Engage in Business in the Philippines and a Certificate of Recognition issued by the DOJ-RSPPU or Certificate of Recognition granted by the UNHCR.
Foreigners, refugees, and stateless people who file for DTI business registration online must still bring the documentation as mentioned above to any DTI office.
There’s a charge for registering a business name, which varies depending on the geographic reach of the business:
- Barangay – PHP 200
- City/Municipality – PHP 500
- Regional – PHP 1,000
- National – PHP 2,000
During your DTI registration, you must pay an additional PHP 30 for Documentary Stamp Tax.
How to Register Your Business Name with the DTI?
All DTI business name registration applications must be submitted using the Business Name Registration System (BNRS). A Certificate of Business Name Registration does not require a trip to a DTI office.
Here are the processes for registering your business name with the BNRS online.
- Visit the BNRS site’s New Registration page. Read the Terms and Conditions at bnrs.dti.gov.ph/registration. When done, please scroll down to the bottom of the page and click the I Agree button.
- Supply the needed information on the online registration form. A red asterisk indicates that a field must not be left blank. On the online form, you must additionally submit your tax identification number (TIN).
- Within seven calendar days of the online application date, pay the business name registration charge.
- You will receive the Certificate of Business Name Registration through email following a successful payment transaction.
- After payment confirmation, go to “Register New Business” to finish your DTI business name registration online.
How to Pay the DTI Registration Fee Through the Internet?
You can now pay the registration cost for the DTI online. You won’t have to leave your house to complete your registration payment.
The actions to take are as follows:
- Under Business Name Services, navigate to the “Transaction Inquiry” module (bnrs.dti.gov.ph/inquiry).
- Simply clicking the “I Agree” button makes you agree to the terms and conditions.
- Input the transaction’s Reference Code.
- To find your company name, click the Search button. Click on the blue hyperlink that appears next to your company name.
- Proceed to the Transaction Summary page after that. To change or complete your payment transaction, go to the bottom of the page and select “Resume.”
- Go to the “Payment Details” page, where you can select from various payment choices (GCash, PayMaya, Smart Padala).
- You’ll receive a Certificate of Business Name Registration (CBNR) and an Official Receipt (OR) in the email address you supplied during registration after the payment is received. Once you complete the DTI payment successfully, you will receive the CBNR.
DTI Registration Walk-in / Over-the-Counter Application
- Visit any DTI office or the Negosyo Center for further information.
- Meet all DTI business registration criteria. If your three proposed business names are already taken, make a list of alternatives.
- Pay the registration price for your business name.
- DTI will provide you a Certificate of Business Name Registration once they approve your business name.
- Please keep a copy of your business name paperwork because it’s one of the most important documents needed for registering your company with the municipal government and the Bureau of Internal Revenue (BIR).
How to Change the Name of Your Company
Although your business name should be valid for at least five years, there may be times when you need to change specific details about your company. In this situation, go to the BNRS website (bnrs.dti.gov.ph), select Business Name Services, and then Update information.
Choosing a Business Name: Some Pointers
When picking on your suggested business names, follow these DTI suggestions to make the process go faster and easier:
- Must describe the nature of your firm — Once you’ve determined which category your company falls under, you may narrow down your alternatives. For example, if you’re selling rice, you can use the terms Bigas, Bigasan, Rice, or any other related keyword as the significant component. Knowing the category might assist you in finding the best word for your company.
- In English or Filipino, it consists of any alphabets, numbers, and punctuation marks.
- “Anne Dok’s Lechon,” “Jolibee,” and “Starbax Café” are examples of existing trademarks that are not identical.
- For a café, don’t use a generic name like “The Coffee Shop.”
- There is no abbreviation for a government agency or an international body, such as NBI Private Investigation Services, DTI Trading, UNESCO Marketing, WHO Health Services, etc.
- It will not be utilized for unlawful or offensive businesses, such as Popoy’s Jueteng Betting Place, Boobs Massage & Spa, and so on.
- Not indicative of any product or service’s quality, such as Best Taho Factory, A-1 Auto Repair Shop, and so on.
- It doesn’t mislead or distort the nature of the business, such as “ABC Construction Services,” while the nature of the firm is recruitment, etc.
What Is the Difference Between a Trade Name and a Business Name?
We frequently mistakenly believe that a company’s legal name is the same as its common name. Unfortunately, this is not always the case. Some business owners choose a more formal name as their company name and a funny term as their trade name.
A trading name is also known as a brand name used in advertising and marketing. In all legal documents about the business, you should use the business name.
It is much easier to discover a trading name to employ for marketing if you choose a business name with a strong recall.
How to Use DTI to Renew Your Business Name
After five years, your registered business name will expire. You must renew your business name with DTI if you want to keep the name.
The steps for renewing a business name are as follows.
- Click “Renewal” under Business Name Services to get all of the reminders on how to choose a business name. After you’ve read and comprehended the terms and conditions on this page, click “I Agree.”
- Click search after entering your Transaction Reference Number (TRN) or Reference Code. In the search results, you should be able to find your current business name.
- Once you’ve discovered your company name, click it to be sent to the Transaction Summary page.
- “Next” should be selected.
- Keep an eye out for the confirmation pop-up. You’ll see two options on the pop-up: “Renew Only” and “Update Scope and Renew.” If all of your business data are the same, choose Renew Only, and proceed to Step 5. Select “Update Scope and Renew.”
- Remember that you can amend your residential address and email address while renewing your business name. You can also change your business address as long as it is still within your company’s territorial reach.
- Select the new Territorial Scope option. Changing the territorial scope also necessitates the certification of your company name. Provide your Dominant Name in the validator, then select the proper Business Name Descriptor by entering keywords and characterizing the nature of your business. Click the Check Name Availability button after entering the Dominant Name and Descriptor. The system will check for errors. After you’ve checked your information, you can move on to the next step.
- Examine the registration details on the regular Renewal page. Make sure your email, business, and residence addresses are all up to current. Remember to type the phrases that best define your firm in the Philippine Standard Industrial Classification area. Choose the best descriptor for your industry.
- When done with the updates and reviews, click “Next” and the Regular Renewal Summary page.
- Review the information and then click “Next.” A pop-up window should appear with your new Reference Code. Please take note of the code since it will be a requirement in all of your BNRS transactions.
- If you agree to the Undertaking, click “Proceed.” You may now be able to download and store the Undertaking to your device.
- Under the payment section, you can select your payment option. DTI Teller, Landbank Link.BizPortal, PayMaya, GCash, and credit or debit cards would be among the possibilities. You’ll have up to seven calendar days to finish the transaction. You have completed the renewal of your Business Name Registration after the confirmation of the payment.
What do I need to do if I want to change my business name?
For any of the changes listed below, you must submit the following documentation:
- Line of business expansion
- A sole proprietorship is a business operated by a person.
- Request for an extra line of business in a letter
- a photocopy of the certificate of business name
- Whether to form a corporation or a partnership
- A resolution of the Board of Directors requesting an additional line of business.
- Amendments to the company’s articles of formation certified accurate copy
- The address has changed.
- A sole proprietorship is operated and owned by a person.
- Request for an extra line of business in a letter
- a photocopy of the certificate of business name
- Resolution of the Board of Directors requesting a change of address
- Amendments to the articles of incorporation certified accurate copy (if applicable)
- Copy of the notice letter advising SEC of the change of address (duly received by SEC)
- A photocopy of the BN certificate is required.
Who has the authority to alter business data?
The proprietor can make changes to the details of an established firm. The registered business owner must sign all paperwork required for the change application. A Certificate of Modification will be issued as a supplementary document to the Certificate of Registration if the change request is submitted before the registration expires.
Applicants for change in the judiciary must produce or submit a board resolution or a similar document.
Once the change request is submitted, it will be subject to DTI approval and provided once payment is received.
What Can Business Data Be Modified?
Changes to your business’s details will only be permitted if your registration has not yet expired. Only the following information can be changed online or in-person at any DTI branch:
- Address for a business
Should there be any cases where names and other nouns in the registration were incorrectly submitted as lowercase letters, capitalization will be applied.
- Line of business – Only if the new proposed line of business is consistent with the existing one and relevant to the approved business name may this section be modified. Otherwise, if the line of business does not apply to your chosen business name, you will need to submit a new registration application.
- Services and products
- Name of the registrant – If the registrant’s name is changed due to marriage or any other judicial process, the change must be supported by an original copy of the marriage certificate or any other document that verifies the judicial decree.
When Should You File a Trademark Application?
Your DTI permit does not guarantee free riders and copycats will not take advantage of your business name. The DTI permission generally permits you to conduct business under the name. Still, it does not prevent others from imitating your logo, a letter, a word, or any other identifying marks associated with your business.
DTI registration, in principle, protects the exact business name from being entirely reproduced by others. A trademark from the Intellectual Property Office of the Philippines (IPOPHIL) will, on the other hand, ensure that a product, name, or identity is unique to your registered business.
You can use your DTI registration to protect your logo, name, and product. Before you file for a trademark, IPOPHIL will need all of the details from your original application with DTI.
Remember! The first step for a committed entrepreneur is to learn how to obtain a DTI permit for a small business. Giving your profitable business ideas a name allows you to differentiate them from your competition. After that, you prepare yourself for more significant trials.
Don’t think for a second that this is the first and last time you’ll need to register a business name with the DTI. Remember to renew your registered business name with the DTI before it expires, as it is only valid for five years.