A business can be started by anyone. To make a profit, all you have to do is sell services or products to someone else, right? Unfortunately, it isn’t that straightforward.
For Filipino entrepreneurs, registering their company with the Department of Trade and Industry (DTI) is a wise decision. This may appear to be a difficult task, but it is actually rather simple.
A business name, according to DTI, is any name you employ in connection with your business that is not your own name. It can be used in the following ways
- Forms for the office, business cards, and stationery
- Materials for advertising and marketing
- Documents for forming a company
- Documents for a business loan
- Agreements and contracts
- Website’s domain name
This article will teach you all you need to know about registering with the DTI.
Why is it necessary for me to register my business with the DTI?
The most obvious reason for registering with the DTI is to protect your company name. It is your responsibility to protect it, whether you spent months thinking about it or it came to you unexpectedly.
Whatever your business is, you must register a business name in the Philippines. It is prohibited to use any name for your business other than your genuine name without first registering with the DTI1, according to Republic Act 3883, or the Business Name Law. When you register your business with the DTI, the government will keep track of it and recognize it.
After registering your business name, you will have the exclusive and legal right to use it for the next five years, during which time it will be renewed. During this time, no other firm in the country can use your name.
Another reason to register your name with DTI is to ensure that your name can be passed down to future generations. This manner, even after you die away, your business name can be utilized by your successors.
However, not everyone is eligible to register with the DTI. In the following sections, we’ll go through this in further detail.
What are the DTI registration requirements?
Securing all of the prerequisites should be at the top of your priority list before registering your firm. There are no requirements that must be supplied for online applications.
If you want to register at a DTI office in your area, you’ll need:
- A copy of the application form that has been completed
- 1 identification card issued by the government (more on this below)
Foreign nationals must bring the following items:
- Certificate of Registration for Alien
- The DTI office issues a Certificate of Registration for Sole Proprietorship or a Certificate of Authority.
- Stateless or refugee individuals must get a Certificate of Recognition from the DOJ-RSPPU.
What is the cost of registering with DTI?
Your registration fee will be determined by the geographic reach of your company. The following is a breakdown of the fees for each scope:
- Php200 per barangay
- 500 pesos for a city or municipality
- Php1,000 on a regional basis
- Php2,000 on a national level
*includes a Php30 documentation stamp tax
From the date of registration, this cost is valid for the next five years. A 50 percent surcharge will be applied to those who filed their business name registration late.
Who is eligible to register a business name?
All Filipinos who own and operate a sole proprietorship are eligible to register. They must be 18 years old or older.
Foreign nationals seeking to register a business name with the DTI must show or submit a Certificate of Authority to Engage in Business in the Philippines. Businesses that are corporations or partnerships must register with the Securities and Exchange Commission rather than the DTI.
What is the difference between a business name and a trademark?
Many individuals mistakenly believe that a business name and a trade name are the same thing, yet the two are vastly different.
The first thing your customers notice about your company is the name. It is your company’s legal name that appears on government documents and other paperwork.
The trade name, on the other hand, is your company’s “nickname,” as it does not include legal terms like Corp. or LLC.
Consider McDo to put things in perspective. McDonald’s Corporation is the company’s legal name, and Jollibee is its brand name. Robinson is another example. Robinsons Retail Holdings, Inc. is the company’s official name, but most people know it by its trading name, Robinson.
In the Philippines, how do you register your business name?
Once you understand the rules, registering your business name with the DTI is simple. Before you register your business name, make sure you read the following vital information.
Choosing a Business Name: Some Guidelines
When choosing a business name, make sure it’s distinct from others of the same sort and geographic scope. When it comes to descriptions, you just have one option.
Here are some things to avoid if you want your business name to be accepted.
- Offensive, illegal, and scandalous phrases
- Infringes on any service mark, trade name, or trademark used by existing registered businesses, cooperatives, partnerships, corporations, or companies (Mang Inasar Lechon Manok)
- It’s made up of geographical or generic terms (The Shopping Mall)
- Regulation or law cannot be used to appropriate it (United State University)
- Suggests a product’s or service’s quality, which could be called misleading advertising (The Best Carinderia)
- Deceptive and misleading, or misrepresents the nature of the business (Yummy Foods, where the business nature is construction)
- An international, national, or intergovernmental organization’s abbreviation (DOT Travel Agency)
- The government uses it for non-proprietary purposes (DTI Trading)
- Other people’s names (Sharon Cuneta Barber Shop)
- Names that are harmful to the security of the state (Taliban Recruitment)