Business Registration and Licensing

HOW TO REGISTER YOUR

BUSINESS

WHY ...
...DO WE NEED TO REGISTER OUR BUSINESS?
- HAVE LEGAL PERSONALITY
- AVOID INCONVENIENCE - AVAIL INCENTIVES AND PRIVILEGES

THE BUSINESS NAME LAW

ACT 3883 November 14, 1941 (As amended by Act 4147 and R.A. No. 863)

AN ACT TO REGULATE THE USE IN BUSINESS TRANSACTIONS OF NAMES OTHER THAN TRUE NAMES. It shall be unlawful for any person to use or sign, on any written or printed receipt ; contract; or evidence of any business agreement or transactions, any name other than his true name DEFINITION Business name, Firm name or style means any name that is different from; - his/her own true name ( individual ) - primary registered name (juridical person) P/C/Cooperative which is used or signed in connection with his business on: - written or printed receipts; - written or printed evidences of any agreements or business transactions; - signage or billboards exhibited in plain view, in or at the place of his/her business, or elsewhere announcing his business

THE BUSINESS NAME LAW

ACT 3883 November 14, 1941
( As amended by Act 4147 and R.A. No. 863 )

PURPOSE

to protect the public dealing with business establishment thru disclosure of the names and real identity of person/s owning the business as well as other facts of records in the DTI;

to prevent a business establishment from using a name identical or confusingly similar to the business name of another establishment; to preserve the proprietary rights attached to the business name of the owner

TYPES OF BUSINESS OWNERSHIP

SINGLE PROPRIETORSHIP ( ONE PARTY )

- also called sole proprietorship - most basic form of business - easy to set up - defined as a business unit where the owner is also the

manager and employee

PARTNERSHIP ( TWO PARTIES ) - two or more persons associated as principal or contributors of capital in a business or joint venture - dependent on interpersonal relationships

- powers and liabilities are defined in the Articles of Partnership CORPORATION

- association of individuals, registered and recognized by law - powers and liabilities are independent of those of its member - can solicit funds from investors / sell shares

REGISTER YOUR BUSINESS WITH THE DTI

and gain exclusive right to establish and use your BUSINESS NAME. It is
also your protection from those who could take advantage of your BN Single Proprietorship are required ( P150.00 ) REGISTERING A SINGLE PROPRIETORSHIP BASIC REQUIREMENTS You must be... A Filipino Citizen of majority age ( at least 18 years old ) not disqualified by law to engage in business NOTE: BN Applicants should register with DTI-Provincial Office which has jurisdiction over their business address

REGISTER YOUR BUSINESS WITH THE DTI

REGISTERING A SINGLE PROPRIETORSHIP

Other Documentary Requirements ( case to case basis )

Foreign sounding Surnames/Naturalized Filipinos Proof of Citizenship Foreign Investor Alien Certificate of Registration CA to conduct business in the Philippines RA 7042 ( Foreign Investments Act ) RA 8762 ( RTL ) Franchise Holders Copy of Franchise Agreement Exercise of Profession PRC ID Real Estate / Insurance etc. DTI/ Insurance Commission Service and Repair Shops TESDA Certification Drugstore / Pharmacy BFAD License to operate

Registration Policies Validity

-The certificate of business name registration shall be valid for five ( 5 ) years from the original date of registration unless sooner cancelled or revoked - It shall be valid only at the business address indicated thereon.

Non-Transferability
-No certificate shall be transferred conveyed or assigned to other individual or juridical

Cancellation
- Automatic Cancellation - Expired BNs not renewed within three ( 3 ) months from its expiration, shall be cancelled from the registry - Authorized Cancellation may be done by the registrant who ceases to carry on business prior to its expiry date, subject to surrender of the BN certificate

Registration Policies Branch Office

-Every branch or satellite office so established shall carry the same line/s of business and have a separate registration

Display of Signboard and Certificate - Every registered BN shall be on public display outside of the place of business - BNR certificate shall be prominently displayed at all times

Change of Business Information

- Shall only be effected only upon prior approval by the DTI, and shall only be approved upon formal notice of such change and payment of fees

WHAT ARE NOT REGISTRABLE ?

Businesses that are illegal, immoral, scandalous, contrary to propriety, inimical to the security of the state; Names nearly resemble a previously registered BN, firm name or style; names which by laws or regulations can not be appropriated; names composed mostly of generic words names, words or terms which are suggestive of quality; names used by government in its official functions; names or abbreviation of names of any nation, intergovernmental or international organizations, unless authorized; names which are deceptive misleading and which misrepresent the nature of business; such other names or styles which in the opinion of competent authority are undesirable or analogous to the above

www.bnrs.dti.gov.ph

www.bnrs.dti.gov.ph

CLIC K

LOCAL GOVERNMENT
secure the necessary permit and license to OPERATE a business in a certain municipality or city to ensure that the standards are met and that businesses comply with specific requirements of the business locale. Basic Requirements: Barangay Clearance Community Tax Certificate Business Registration (DTI/SEC) Sketch of Location

Note : Registration procedure varies across cities and municipalities. Additional requirements maybe imposed depending on the nature and type of business

LOCAL GOVERNMENT
Where to go ? Business Permits and License Office ( BPLO ) or

Business Promotion and Development Office (BPDO)

Other LGU Permits Sanitary Permits Health Permits Working Permits Locational/Zoning Clearance Fire Safety Inspection, Electrical, Building Permits Certificate of Occupancy Go to; City or Municipality where your business is located

SEC Online Business Registration

For Corporation, Partnership and Cooperative

Filled up application form

Certified photocopy of SEC and CDA registration and Articles of Incorporation, Partnership or Cooperative (by the board of secretary)
Board Resolution for the authorized signatory, if signatory is not one of the incorporators Board Resolution for the registration of an adopted name/branch with specific address (if applicable) Processing fee of P500.00

Registering with the ... COOPERATIVE DEVELOPMENT AUTHORITY ( CDA )

All Cooperatives are required to register with the CDA as per Republic Act 6938/6939 REQUIREMENTS Four (4) copies of the Articles of Incorporation Four (4) copies of the By-Laws Four (4) copies of the Economic Survey (Feasibility Studies) Bond of Accountable Officers (Fidelity/Cash/Surety ) Capitalization (not lower than P2000) depending on the activities registered ) Minimum of 15 members

Where to go ?
Cooperative Development Authority Benlor Building, 1184 Quezon Avenue Quezon City, MM Tel. No. 373-6896

REGISTER YOUR BUSINESS WITH THE

BUREAU OF INTERNAL REVENUE ( BIR ) for taxation purposes issuance of Taxpayer Identification Number (TIN) authority to print/issue receipt and invoices permit to use cash register or POS machines permit to use loose leaf books of account/accounting records or computerized accounting system Submit Registration form together with Sketch of location of the establishment Mayors Permit DTI BN Certificate or SEC Articles P/C Photocopy of BIR Registration of HO ( for Branch Office/s) Where to go? Revenue District Office (RDO) having jurisdiction over your HO/Branch place of production or storage.

REGISTER YOUR BUSINESS WITH THE

SOCIAL SECURITY SYSTEM ( SSS ) to be able to secure employees benefits. It also benefits employers in case of employees disability or death. Submit application form and appropriate supporting documents duly signed by the authorized signatory
Note: Report on newly hired/re-hired/present employee/s should be submitted regularly

Where to go?
Social Security System Branch Office nearest your business address

REGISTER YOUR BUSINESS WITH THE

DEPARTMENT OF LABOR AND EMPLOYMENT ( DOLE )

for the purpose of monitoring your firms compliance with labor

regulations. 5 or more employees are encouraged obligatory for big establishments with 50 or more workers GO TO; Bureau of Local Employment

PHILIPPINE HEALTH INSURANCE CORPORATION ( PhilHealth ) for medical insurance benefits of your employees GO TO; Philhealth Office nearest your business address

Ex: Business Registration Flow Chart (Food Business)

Step 1 Step 2
Seek approval/ clearance from the Barangay

Step 3 Yes
If Sole Proprietor: Register with the Department of Trade and Industry (DTI) for Business Name Certificate
-Accomplished Business Name Registration Form (BTRCP Form 16A) -List of five business names ranked according to preference -Registration fee of P300.00

Step 4
Register with the Municipality where the business is to be located for Business Permits/Licenses such as Sanitation, Fire Protection & Permit to Operate
-Accomplished Business Permit Application Form -DTI - Business Name Certificate -Sketch of the business location -2 pcs. 2x2 colored ID Picture; -Registration fee, the amount of which depends on the type of the business

Get familiar with the requirements from the Bureau of Food and Drugs (BFAD) License to Operate: Manufacturer/Trader / Packer/ Repacker Laboratory services Product registration Legal services Other services

No
Look for other viable location/s

If Partnership/ Corporation: Register with the Securieties and Exchange Commission (SEC) (see requirements at the back)

Finally, register with the

Bureau of Food & Drugs (BFAD)

Step 8

If 5 or more employees, register with the Department of Labor and Employment (DOLE)
-Accomplished Rule 1020 Form -Lay-out of business location -Vicinity map

For employer & employee benefits and incentives, register with the Social Securities System (SSS)
-Accomplished R1 Form -Attach copy of DTI Business Permit -Attach copy of Mayors Permit

Register with the Bureau of Internal Revenue (BIR) District Office where the business is to be located for TIN, Authority to Print Invoice and Book of Journal
-Accomplished Form 1901 -Attached copy of Mayors Permit -Registration fee of P500.00

Start the Busine ss

Step 7

Step 6

Step 5

Ex: Business Registration Flow Chart Travel Agency

Step 1 Get familiar with the requirements from the Department of Tourism (DOT):
Business Name Certificate for Single Proprietorship Mayors Permit / Municipal License Articles of Incorporation / Partnership & By-Laws for Corporation/Partnership Latest Income Tax Return and Audited Financial Statements Contract of Lease of office space / certificate of title Application form duly accomplished and notarized List of officials and employees Valid visa and labor permit for foreign nationals Board Resolution authorization for bonafide employee to file / transact business with DOT Proof of P500,000 working capital Proof of Inbound or local tour operations (official receipts of bookings from DOT accredited hotels/resorts) Tour packages with tariff rates Copy of Surety Bond submitted to Local Government Unit (LGU) General Manager shall have at least 3 years managerial experience in tour operations Bio-Data of two permanent staff who shall have at least 2 years experience in tour operations Office space requirements should be located in a commercial area, must be easily identifiable and shall be used exclusively for the tour operation business. For tour operators with branches - affidavit executed by the general manager of the main office acknowledging the existence of the branch office, assuming full responsibility of its operations and certifying that it is not managed nor operated by persons/ entities other than the duly accredited employees and officers of the main office.

Step 2
Seek approval/ clearance from the Barangay

Step 3 Yes
If Sole Proprietor: Register with the Department of Trade and Industry (DTI) for Business Name Certificate
-Accomplished Business Name Registration Form (BTRCP Form 16A) -List of five business names ranked according to preference -Registration fee of P300.00

Step 4
Register with the Municipality where the business is to be located for Business Permits/Licenses such as Sanitation, Fire Protection & Permit to Operate
-Accomplished Business Permit Application Form -DTI - Business Name Certificate -Sketch of the business location -2 pcs. 2x2 colored ID Picture; -Registration fee, the amount of which depends on the type of the business

No
Look for other viable location/s

If Partnership/ Corporation: Register with the Securieties and Exchange Commission (SEC) (see requirements at the back)

Finally, register with the Department of Tourism (DOT)

Step 8

If 5 or more employees, register with the Department of Labor and Employment (DOLE)
-Accomplished Rule 1020 Form -Lay-out of business location -Vicinity map

For employer & employee benefits and incentives, register with the Social Securities System (SSS)
-Accomplished R1 Form -Attach copy of DTI Business Permit -Attach copy of Mayors Permit

Register with the Bureau of Internal Revenue (BIR) District Office where the business is to be located for TIN, Authority to Print Invoice and Book of Journal
-Accomplished Form 1901 -Attached copy of Mayors Permit -Registration fee of P500.00

Start the Busine ss

Step 7

Step 6

Step 5

Other Registering Agencies for Regulated Businesses

DTI Bureau of Product Standards (DTIBPS) Intellectual Property Office (IPO) DTI Bureau of Trade Regulation and Consumers Protection (DTI-BTRCP) Cooperative Development Authority (CDA) Bureau of Food and Drugs (BFAD) National Food Authority-Regulatory Division (NFA-RD) Fiber Industry Development Authority (FIDA) Bureau of Fisheries and Aquatic Resources (BFAR) Bureau of Animal Industry (BAI) Bureau of Plant Industry (BPI) Forest Management Bureau (FMB) DENR National Tobacco Administration

ano ba yan! ang dami naman!

FOR MORE INFORMATION;

You can visit our website at

www.dti.gov.ph
Or you can call or visit our Regional and Provincial Offices

Business Registration Process

Firm Name Registration Business Permit For employees benefits Other Licenses

and Permits *

NFA SSS HDMF DENR FPA LTFRB END

SEC

START

DTI

LGU BIR

DOT
BFAD DOLE BSP

CDA

PHIC

* Depending on the type of business, initial list only

BOI

Keep in Mind.
A key success factor in a small business is having the resources to wait out the inertia of customers Customers are creatures of habit, therefore unlikely to change their behavior immediately just for a new product or service Some businesses take five years to be an overnight success

Dont go into business to earn Go into business because you want to learn

MARAMING SALAMAT PO!

[email protected] Tel. No. 4688962 or 8319988 www.pttc.gov.ph