Registration with the Department of Trade and Industry (DTI) applies to a sole proprietorship type of business. If the business is a corporation or partnership, the registration is with the Securities and Exchange Commission (SEC).
DTI registration is more common to micro and small businesses because it is easier and less costly to accomplish. Moreover, in general, it is likewise favorable in terms of taxation.
However, unlike corporations, the liabilities of a sole proprietorship type of business is also considered as the liabilities of the business owner. Meaning, the personal properties of the business owner may be attached for purposes of paying the liabilities of the business. This does not apply to a corporation because of the separation of personalities of the corporate owners (the stockholders) and the business itself (the corporation).
Sometimes, there are business owners who register with DTI because they don't have business partners to meet the required minimum number of incorporators. That has been remedied under the Revised Corporation Code. There is now what is called a "one person corporation".
What are some of the prohibitions in registering a business name with DTI?
1. It should not be a term or word or group of words that connote activities or norms that are unlawful, immoral, scandalous or contrary to propriety;
2. It should not be a name, words, terms or expressions used to designate or distinguish, or suggestive of quality, of any class of goods, articles, merchandise, products or services;
4. It should not be composed of purely generic word or words.
5. It should not be a name of other persons; and
6. It should not be deceptive, misleading or misrepresenting the nature of business.
What are the modes of registration?
1. Through online, using the DTI Business Name Registration System (BNRS); or
2. Via walk-in/over the counter application.
What are the requirements for registration?
1. Duly filled out application form;
2. 1 valid government-issued ID, like SSS, TIN, Passport or Driver's License;
3. Prepare a set of 3 suggested business names;
4. Authorization letter if to be processed by a representative; and
5. Payment of registration fee. The amount depends on whether the permit is only for a particular municipality, city, region, or national.
What are the additional requirements if the applicant is a foreigner?
1. Alien Certificate of Registration; and
2. Certificate of Authority to Engage in Business in the Philippines per RA 7042 (Foreign Investment Act) as amended by RA 8179, RA 8762 (Retail Trade Liberalization Law), and such other applicable laws. This certificate will also have to be applied with DTI.
After DTI registration, application for a business permit and BIR registration must also be done. You may check our articles on: