A sole proprietor who does business under any name other than their own true name must register that Business Name (BN) with the Department of Trade and Industry through the online Business Name Registration System (BNRS). Registration fees range from ₱200 to ₱2,000 depending on the territorial scope chosen (barangay, city/municipality, regional, or national), plus a ₱30 documentary stamp tax. The certificate is valid for five (5) years. Registering a business name is only one piece of starting a business — it does not replace the separate Mayor's/Business Permit needed to actually operate.
Who Needs to Register, and Who Can Register
Under the DTI's own rules, anyone doing business using a name other than their true name is required to register that business name. Registration is open to any Filipino at least 18 years of age. A foreign national authorized to do business in the Philippines may also register, but must first obtain a Certificate of Registration of Sole Proprietorship / Certificate of Authority to Engage in Business under the Foreign Investments Act; a recognized refugee or stateless person needs a written recognition from the Department of Justice's Refugee and Stateless Person Protection Unit instead.
Choosing a Territorial Scope — and What It Actually Costs
Registration fees are set by the territorial scope the applicant selects, which is the geographic area within which the business may locate its offices, stores, branches, or plants (it is not a limit on where the business may actually transact): Barangay — ₱200; City/Municipality — ₱500; Regional — ₱1,000; National — ₱2,000. Every registration additionally carries a flat ₱30 documentary stamp tax, and late filing of a renewal adds a 50% surcharge on top of the base fee. A small sari-sari store or home-based service business generally needs nothing wider than the barangay or city scope; a business planning to expand its physical presence across regions should register at the corresponding wider scope from the start, since upgrading later means a fresh registration at the higher fee.
What Names Cannot Be Registered
The BNRS rejects a proposed business name that: is unlawful, immoral, scandalous, or contrary to propriety; merely describes or is suggestive of a class of goods or services; duplicates a name already registered as a trade name, trademark, or business name; is inimical to State security; is composed purely of generic words; is restricted by law or regulation; is officially used by government in a non-proprietary function; uses the name of a nation or international organization without authorization; has been ordered by a court or agency not to be registered; uses another person's name; or is deceptive or misleading as to the nature of the business. Notably, only a partnership or corporation registered with the SEC may use the words “company,” “corporation,” or “incorporated” in its name, and only a cooperative registered with the CDA may use the word “cooperative” — a sole proprietor's business name cannot use any of these terms.
How Registration Actually Works, and How Long It Lasts
Registration is done through the BNRS Next Gen online portal, which allows an applicant to submit the application, pay fees online (via GCash, PayMaya, credit/debit card, over-the-counter at 7-Eleven or Bayad Center, or bank deposit through LandBank Link.Biz), and download the Certificate of BN Registration once approved. An interrupted application can be resumed later using the applicant's reference code under Transaction Inquiry. A representative may file on the owner's behalf with a valid ID and a signed authorization letter. Once issued, the certificate is valid for five (5) years from the date of registration, after which it must be renewed.
This Is Not the Same as Your Mayor's Permit
A common point of confusion: registering a business name with DTI gives the business a legal identity for the name it uses, but it does not authorize the business to actually operate. To operate lawfully, the sole proprietor separately needs a Business/Mayor's Permit from the local government unit where the business is located, on top of the DTI registration. The two are sequential, not interchangeable — DTI registration is typically the first document a local government office will ask for when applying for the Mayor's Permit.
Practical Takeaways
- DTI Business Name registration is required for any sole proprietorship operating under a name other than the owner's true name;
- Fees run ₱200 to ₱2,000 depending on territorial scope (barangay to national), plus a flat ₱30 documentary stamp tax;
- The certificate is valid for 5 years — mark the renewal date, since late renewal adds a 50% surcharge;
- DTI registration is not a business permit — a separate Mayor's/Business Permit from the LGU is still required to actually operate.
Frequently Asked Questions
Do I need to register my business name if I'm just using my own name? No. Registration with DTI is only required if you are doing business under a name other than your own true name.
How much does it cost to register a business name with DTI? It depends on the territorial scope you choose: Barangay is ₱200, City/Municipality is ₱500, Regional is ₱1,000, and National is ₱2,000 — each plus a flat ₱30 documentary stamp tax.
How long is a DTI Business Name registration valid? Five (5) years from the date of registration, after which it must be renewed. Late renewal adds a 50% surcharge to the applicable fee.
If I have a DTI Business Name registration, can I already operate my business? Not yet. A Business Name registration only gives your business a legal identity for the name used — you still need a separate Business/Mayor's Permit from your local government unit to actually operate.
This commentary is for general informational purposes only and does not constitute legal advice. For guidance specific to your situation, please consult a licensed attorney.
If you have questions about your rights or options under Philippine law, our firm is available to assist. You may reach us via Viber or WhatsApp, call us at 0995 433 5550, or send an email to vivasnobles@gmail.com. We look forward to hearing from you.