Imagine you’ve come up with the perfect name for your business — something catchy, memorable, and unique. But what if someone else decides to use that very same name, or worse, it’s already taken? Yes, this is where registering your trade name comes in. By officially registering, you protect your brand and — avoid future legal disputes.
A trade name is the name that identifies your business to the public. According to the Intellectual Property Code of the Philippines, a trade name is “the name or designation identifying or distinguishing an enterprise (Section 121).” Thus, one cannot use any name at a whim. It still must be approved and is subject to restrictions.
In this blog, we’ll dive into “Doing Business As” (DBA) or trade names in the Philippines, addressing common questions and offering a simple, step-by-step guide on how to register them.
Understanding DBA and Trade Names: Common Questions Answered
To help you better understand DBA (Doing Business As) names and trade names, we’ve gathered a list of frequently asked questions and their answers:
1. What is a Company Name?
A company name, as the cornerstone of the brand, is a (generic) designation that defines the business and creates the unique identity among other competitors in the light of public perception. In its technical aspect, it may be a corporate (legal) name, a trade (DBA) name, or both.
2. What is the Difference Between a Corporate Name and a Trade Name?
A corporate (legal) name (e.g., Company XYZ) is the name used in the paperwork filed to create the business. If it is a corporation, it is the name on the legal documents including the Articles of Incorporation (AOI).
On the other hand, a trade name (e.g., XYZ Tech) can be the name the business is commonly known as or the name used when advertising or doing business. When registered with the regulatory body (e.g., SEC), it is signified by “doing business as,” “doing business under the name and style of” or any other similar indicators (after the corporate or legal name).
Sole proprietorships may also wish to trade under a different name and not their own personal name (e.g., Dela Cruz, Juan Santos will use the business name JSD General Merchandise). Corporations and other business entities may also register and use additional trade names (e.g., COMPANY ABC will be doing business under the name and style of ABC Technologies).
3. What is a Doing Business As (DBA) Name?
A doing business as (DBA) name is the same as the trade name or the operating name of a company as opposed to its corporate or legal name. It also goes with other terms such as “business style,” “assumed name,” “fictitious business name,” and “legal alias.”
For example, BDO Unibank, Inc. declares in its Articles of Incorporation all the DBA names and styles duly registered with the Securities and Exchange Commission (SEC), which include BDO, BDO Unibank, Banco De Oro, Banco De Oro Unibank, and BDO Banco De Oro.
4. What is a Business Style?
Business style, as opposed to the registered name or corporate name, is also the trade name signified by “doing business as,” “doing business under the name and style of” or any other similar indicators. For sole proprietorships, this is more straightforward as the trade name is indicated in the DTI Certificate of Registration. It is the same as the Doing Business As (DBA) name.
As clarified under BIR Revenue Memorandum Circular (RMC) No. 55-2019, “the phrase “Business Style” refers to the business name registered with the concerned regulatory body used by the taxpayer other than its registered name or company name.” It is different from the nature of business or line of business (e.g., water transport, textile manufacturing, private educational services, etc.), and it must be on the official receipts and invoices (Section 113B 4 of the National Revenue Code).
5. How Do Companies Change Names?
If the company does not have any other registered trade names, then it is understood that the corporate name is also its trade name, but it may also:
- change or amend its corporate name (e.g., from Company ABC to Company XYZ),
- register or add a DBA/trade name/s (e.g., from Company ABC to Company ABC doing business under the name and style of ABC Technologies),
- change or amend the registered DBA/trade name/s (e.g., from Company ABC doing
business under the name and style of ABC Technologies to Company ABC doing business under the name and style of ABC Tech), or
- deregister DBA/trade name/s (e.g., from Company ABC doing business under the name and style of ABC Tech to Company ABC)
6. Why Do Businesses Register DBA Names?
Sole proprietors and general partnerships use industry-relevant and professional-sounding DBAs instead of their names to ensure consumers understand their services (e.g., Enrico Vasquez, an electronics technician, could use “Electronics Xpert”). DBA names are also used for privacy and marketing purposes.
Corporations also use DBA names for branding and marketing, especially when the entity names do not suit their products or services. Sometimes, the legal names are also long, hard to spell or pronounce, difficult to remember, or not search engine friendly. For instance, “Space X” sounds cooler and catchier than Space Exploration Technologies Corporation.
DBA names are also used by companies that enter a new line of business or market new products and services that the current legal business names do not represent. Although there is no legal protection unlike a trademark, registering a DBA name is a form of public notification, especially to other businesses, that the name is in use.
7. What is the Difference Between a DBA and a Trademark?
In terms of legal rights, a DBA creates a buffer between a legal entity as the name used to market and promote the company, whereas a trademark name is inextricably concerned with the distinction between the company and others with names or even missions like it. DBAs offer virtually no legal rights.
In terms of ownership, DBA names do not give the right to claim anything about the business name, and businesses can claim duplicate or multiple DBA names. Trademarks, on the other hand, are all about the ownership of the name and the elements therein. Additionally, registering a DBA name is way cheaper and easier than registering a trademark.
8. Can a DBA Name Be Trademarked?
Registering a trade name or DBA name does not provide the same legal protection as a trademark. However, a DBA for a particular product or service may also be trademarked to give it the same legal protections provided to the usual trademarked companies and brands.
9. What Are the Restrictions When Using DBA Names?
Section 165 of the Intellectual Property Code of the Philippines provides that “a name or designation may not be used as a trade name if by its nature or the use to which such name or designation may be put, it is contrary to public order or morals and if, in particular, it is liable to deceive trade circles or the public as to the nature of the enterprise identified by that name.”
How to Register a DBA Name in the Philippines
For sole proprietorships, the business name must be registered together with the DBA name with the Department of Trade and Industry (DTI) registration, so it is a one-time legal process.
For companies registered with the Securities and Exchange Commission (SEC), the DBA registration may be done together with the initial registration or upon amendment of the Articles of Incorporation (AOI).
If done after the registration with the DTI or SEC, the amendment must also be made to the BIR documents, such as the COR, ATP, and receipts, and LGU-issued business permits. The registration of a DBA name does not necessarily mean registration with the Intellectual Property Office or IPO. A separate trade name or trademark registration, if preferred, shall be necessary before the IPO.
1. Obtain SEC Monitoring Clearance and File the Amended AOI and GIS.
The first step in registering a Doing Business As (DBA) name (or any other related amendments) in the Philippines is to secure a SEC Monitoring Clearance, which verifies the availability of the chosen business name. Afterward, you need to file an amended Articles of Incorporation (AOI) and General Information Sheet (GIS) with the Securities and Exchange Commission (SEC) to reflect the new DBA name. This step ensures that the legal documents of your corporation are updated and compliant with SEC regulations.
2. Update the Amendment with LGUs and Secure New Business Permits.
Once the SEC approval is obtained, the next step is to process the amendment with the Local Government Units (LGUs), where your business is registered. You need to update the business name with both the barangay and city or municipal government to ensure that your business is recognized under the new DBA. This also involves securing the updated business permits, including the mayor’s permit, to legally operate under the new name.
3. Secure BIR Certificate of Registration (COR) and Other Tax Documents.
After completing the amendments with the SEC and LGUs, you must update your tax registration with the Bureau of Internal Revenue (BIR). This requires securing an updated BIR Certificate of Registration (COR) that reflects the new DBA name. Additionally, you will need to obtain the necessary tax documents, such as the Authority to Print receipts (ATP) and books of accounts, to ensure compliance with tax laws.
When amending or updating trade names with the BIR (i.e., through the BIR Form 1905), there are three options to choose from: (a) changing the registered name, (b) changing the trade name, and (c) adding a trade name.
4. Update Employer Registrations with the Statutory Agencies.
The final step is to update employer registrations with the statutory agencies — Social Security System (SSS), Philippine Health Insurance Corporation (PhilHealth), and Pag-IBIG Fund. These agencies require you to report the changes in the business name for proper employee coverage and benefits administration. Updating these records ensures that your company remains compliant with labor and employee welfare regulations.
In conclusion, registering your trade name (DBA) is an essential step in establishing and protecting your business identity. Whether you are a sole proprietor or a corporation, securing a DBA name ensures that your brand is recognized legally and helps you stand out in a competitive market. By following the registration process outlined above, including obtaining clearances from the SEC, BIR, LGUs, and statutory agencies, you can confidently operate your business under your chosen name without the risk of legal conflicts.
While a DBA name does not offer the same level of protection as a trademark, it provides the public with a clear indication of your business identity and what it represents. Remember, a well-registered DBA name not only ensures legal compliance but also serves as a key part of your branding strategy. With the proper steps taken, you can focus on growing your business while maintaining a strong and recognizable presence in the market.
… and you might just need our assistance.
Ready to register a DBA name in the Philippines? Set up a consultation with our business specialists to discuss service packages, scopes of work, service fees, and other matters! Call us at (02) 8478-5826 (landline) and 0917 892 2337 (mobile) or send an email to info@filepino.com.