Do you really need a DTI registration for your small business? This question often comes up for wannabe entrepreneurs in the Philippines, especially those looking to formalize their business operations.
The Department of Trade (DTI) registration, also known as the DTI business name registration, serves as a crucial first step in establishing your business’s legitimacy and market presence. While it provides your enterprise with a legal identity, it is important to note that it does not serve as a permit to operate. Still, there are additional registrations and licenses that must be obtained, such as those with the local government units (LGUs) and BIR.
In this blog, we’ll explore the essential aspects of DTI registration, the benefits it brings, and the steps that you need to take to get started. Read on and feel free to share your thoughts, additional tips, or questions in the comments.
What Is DTI Registration?
DTI registration is the process of officially registering a business name — also known as business name (BN) registration — with the Department of Trade and Industry (DTI). This is especially important for sole proprietorships and self-employed individuals, who wish to operate a business under a specific name. Its primary purpose is to provide legal recognition and ensure that the chosen business name is unique, thus preventing it from being exploited by other entities.
The Department of Trade and Industry (DTI) is the Philippine government’s primary agency for coordinating, promoting, facilitating, and regulating trade, industry, and investment in the Philippines. It acts as a catalyst to boost private sector activities and sustain economic growth through programs and policies aimed at expanding and diversifying both domestic and foreign trade.
Who May Obtain DTI Registration?
Generally, corporations and partnerships require registrations with the Securities and Exchange Commission (SEC), while cooperatives with the Cooperative Development Authority (CDA).
Sole proprietors, including freelancers and self-employment individuals — whether Filipino citizens or foreign nationals — may obtain DTI registration for their business names provided they meet the following conditions:
- Individuals of at least 18 years of age (non-Filipino citizens under 18 years old must submit proof coming from their home country where the legal age is lower than 18)
- Filipino Citizens
- Non-citizens need to obtain a Certificate of Registration of Sole Proprietorship or Certificate of Authority to Engage in Business in the Philippines pursuant to RA 7042 (Foreign Investment Act).
- Refugees or stateless persons must be issued a written recognition by the Refugee and Stateless Person Protection Unit of the Department of Justice (DOJ-RSPPU).
What Is the Importance of DTI Registration?
Securing registration with the Department of Trade and Industry (DTI) in the Philippines is vital for several reasons:
Legal Recognition and Compliance
Sole proprietors and self-employed individuals require registration of their business with the DTI to provide it with a legal identity and rights to use the business name. However, it is important to emphasize that the business name (BN) registration is not a license to operate a business.
Access to Government Support and Incentives
If a business is duly registered with the DTI and other government agencies, then it must have secured all necessary permits and licenses that prove its legitimacy. These documents can be instrumental in accessing various government programs, financial assistance, and incentives primarily designed to support small and medium enterprises (SMEs).
Consumer Trust
DTI registration, along with other business registrations, assures customers that the business adheres to regulations and standards. This fosters trust and confidence, which are both essential for attracting new customers while retaining existing ones.
Business Opportunities
Complete business registration documents can also unlock partnerships, contracts, and collaborations with other businesses, even government agencies, for projects and procurements that necessitate official documentation. Having all the necessary paperwork positions the business as a reliable partner, thus making it convenient to engage in meaningful alliances that can drive growth and sustainability.
Intellectual Property Protection
DTI registration only allows the business owner to operate under their registered name. While it is essential to register the trade name or trademark with the Intellectual Property Office (IPOPHL) for exclusive rights and protection, DTI registration is a crucial first step. Both ensure legal protection of the business name and brand against authorized use.
DTI Registration Requirements
Before processing your DTI registration, make sure to prepare and gather all documentary requirements for a smooth transaction. Here is a checklist to help you get started.
Business Name
As DTI defines, a business name (BN) refers to any name different from the true name of an individual, which is used or signed in connection with his or her business on any written or printed receipts, including receipts for business taxes, duties and fees, and withdrawal or delivery receipts; any written or printed evidence of any agreement or business transaction; and any sign or billboard conspicuously exhibited in plain view in, or at the place of business or elsewhere, announcing the business.
When choosing or deciding on a business name, make sure that it is unique, memorable, and compliant with the DTI’s guidelines. Normally, the DTI requires a business name to consist of two parts – a dominant name and a descriptor.
The dominant name (e.g., A123 Matrix) is the primary part, which may consist of a word, a phrase, or a combination of letters and numbers. This is meant to stand out and create a strong brand identity for the business.
The business name descriptor (e.g., Tutorial Services), on the other hand, provides clarity about the nature or line of business, thus modifying the dominant name.
Business Territorial Scope
DTI registration also requires a declaration of the business’s territorial scope or the geographic area where the registered business is authorized to operate. This can be defined at different levels, from the barangay level, the smallest administrative unit, to broader scopes like a municipality, city, or region, to the national scale.
As DTI further explains, the territorial scope refers to the extent of the geographical area within which the pertinent business may locate its offices, stores, shops, branches, manufacturing or processing plants, or other business structures, where the pertinent business name may be used without prejudice to engaging in business elsewhere.
Valid Identification (ID)
DTI registrants must also present a valid government-issued identification (ID) card for identity verification. Acceptable IDs include a passport, driver’s license, Taxpayer’s Identification Number (TIN), SSS ID, and postal ID, among others.
If the person to register is a foreign national, refugee, or stateless person, who does not hold any of these IDs, the supporting documents must first be submitted to any physical DTI office before processing any registration.
Other Personal and Business Information
These include your complete name, citizenship, birthdate, civil status, gender, and email address. Providing accurate and up-to-date information is important to ensure a smooth registration transaction and that you can be contacted regarding any matters related.
DTI Registration Fee and Documentary Stamp Tax (DST)
The DTI registration fee depends on the territorial scope of the business. This also comes with a PHP 30 charge for the documentary stamp tax (DST):
- Barangay: PHP 200
- City/Municipality: PHP 500
- Regional: PHP 1,000
- National: PHP 2,000
While the DTI registration may already be processed online through the agency’s official website, payment may also be conveniently made online. As per instruction, you must pay within seven (7) calendar days from the date of registration; otherwise, your application will be canceled.
Other Requirements (for Foreign Nationals)
Foreign nationals, who are qualified and want to establish a sole proprietorship business in the Philippines must present a certified copy of Alien Certificate of Registration (ACR) and Certificate of Registration for Sole Proprietorship or Certificate of Authority to engage in business in the Philippines.
How to Process DTI Registration Online
DTI registration can be conveniently processed from the comfort of your home and typically takes less than an hour. However, you might want to consult with business experts before you make the big move. Below is a step-by-step guide to the online DTI registration process:
1. Access the DTI BNRS Portal.
You can easily access the DTI Business Name Registration System (BNRS) portal by searching for it on a search engine or by directly entering https://bnrs.dti.gov.ph/ in your browser’s address bar. Upon visiting the portal, click on the “Register New” button and get directed to the New Registration page. Read the terms and conditions and click “I Agree” to proceed.
2. Provide the Owner’s Information.
As the business owner or sole proprietor registrant, you must provide your personal details (i.e., complete name, citizenship, birthdate, civil status, gender, and email address). Click “Next” to continue with the application. You will receive a verification code via email (check the spam folder if it is not received after a few minutes).
3. Process to Business Name Registration.
Select the business territorial scope (i.e., national, regional, city or municipality, or barangay). Depending on your selection, you may also be asked to provide specific territorial scope (e.g., a specific city or region). Provide your dominant business name and select the appropriate business name descriptor. Your proposed business name will then be displayed. Proceed to confirm if the name is still available. If not, create a new one.
4. Get Your Reference Code.
After completing the stage, a reference code will be generated. Make sure to save it. You will need it for all future transactions on the DTI BNRS Portal. Then, proceed to filling out the rest of the online form with your business details. Make sure to review all information carefully, especially your email address, where the electronic Certificate of Business Name Registration (CBNR) will be sent.
5. Pay the Necessary Fees.
As mentioned, the payment must be made within seven (7) days after registration. Payment channels include DTI Teller, GCash, PayMaya, LandBank, credit card, and debit card. Once your payment is confirmed, remember to click ‘Register New Business’ to initiate the processing of your registration.
6. Wait for the Approval and Receive Your Certificate.
After your application is approved, you will receive your Certificate of Business Name Registration (CBNR) via email. This may take a few business days from the date of your payment. Once you receive your CBNR, print a copy and display it prominently at your business premises.
How to Renew Your DTI Registration
Like other business permits and licenses, a DTI registration comes with an expiration and must be renewed on time. Failure to do so can lead to non-compliance, operational disruptions, and other inconveniences. Here’s how to renew your DTI permit:
1. Know the Important Renewal Periods.
Your DTI registration is valid for five (5) years from the date of issuance. To retain the business name, you must process the renewal on the following periods, subject to certain conditions:
- Early Filing. You may already file for registration renewal one hundred eighty (180) calendar days prior to the expiration date.
- Regular Filing. You may also process it within ninety (90) days following the expiration of registration.
- Late Filing or Grace Period. If filed within ninety (90) days after the regular filing period, the renewal is subject to a payment of a surcharge of fifty percent (50%) of the registration fee.
As DTI warns, all business name registrations not renewed will be automatically removed from the DTI database after six (6) months from the anniversary date and will be made available for registration by other parties, subject to existing rules on registrability.
2. Visit the DTI BNRS Portal.
Revisit the DTI Business Name Registration System (BNRS) portal at https://bnrs.dti.gov.ph. Under Business Name Services, select Renewal and agree with the terms and conditions displayed on the screen. Then, input your Transaction Reference Number (TRN) or Reference Code to initiate the business name search.
3. Manage the Renewal Details.
Proceed to the Transaction Summary page once the business name is searched. Select between Renew Only, and Update Scope and Renew. You may also update your business address, provided that it is within the territorial scope as initially registered. Manage the updates of all other details, as may be necessary.
4. Pay the Necessary Fees.
Once everything is settled, you will then be required to conform to the Undertaking, which you may also download for future reference. Like the initial DTI registration fees, the renewal fees must be paid within seven (7) days via the DTI Teller, LandBank, Link.Biz Portal, Maya, GCash, credit card, and debit card.
5. Receive Your Certificate.
You will then receive your updated Certificate of Business Name Registration (CBNR) via email.
DTI Registration FAQs
For your additional information, check out these frequently asked questions and their answers:
[1] Can I Include the Words, “Company,” “Corporation,” “Incorporated,” or “Cooperative” in My Business Name? No. Only partnerships and corporations duly registered with the Securities and Exchange Commission (SEC) can use the words “company,” “corporation,” or “incorporated” in their business names. Likewise, the word “cooperative” is reserved for cooperatives registered with the Cooperative Development Authority (CDA).
[2] Can a Foreign National Register a Business Name? Just as foreign nationals are permitted to establish and operate businesses in the Philippines, they are also allowed to register a business name with the DTI. However, they must meet specific requirements set forth by the agency in accordance with applicable laws and regulations.
[3] Can a Representative File the DTI Registration on My Behalf? Yes. DTI registrations may be filed by representatives as long as they can provide a valid ID and an authorization letter signed by the business owner together with all other documentary requirements.
[4] Is DTI Registration Sufficient to Operate My Business? No. A business name registration with the DTI simply provides your business with a legal identity. It is not a license to operate a business. In order to legally operate within the LGU jurisdictions, you must also obtain business permits (i.e., barangay business permit and mayor’s permit). To issue receipts and invoices, you must also be BIR-registered. Other additional registrations are required depending on circumstances.
[5] Can I Change or Amend My DTI Registration Details? Yes, you may update your registration information on the DTI BNRS portal, provided that your registration has not expired nor has been previously canceled. However, amendments may only be limited to specific details, such as your business address, line of business, products and services, etc.
[6] Can I Transfer the Ownership of My Business Name (BN) Registration? DTI does not allow any transfer of ownership of business name registration. However, this is still possible by canceling the old registration and applying for a new one under the new ownership.
… and you might just need our assistance.
Ready to register your business in the Philippines and obtain your DTI registration? Set up a consultation with FilePino today! Call us at (02) 8478-5826 (landline) and 0917 892 2337 (mobile) or send an email to info@filepino.com.
