QuestionsQuestions (DEPARTMENT ADMINISTRATIVE ORDER NO. 18-07)
DAO No. 18-07 aims to (1) regulate the use of business names in order to protect the public by disclosing the name and real identity of the owner, (2) streamline requirements for processing Business Name (BN) applications and promote ease of doing business, and (3) set guidelines on disclosure of information from DTI records subject to the Data Privacy Act and the Freedom of Information Act.
The Rules apply to natural persons who may be Filipino citizens, authorized non-Philippine nationals, recognized refugees, and recognized stateless persons, as defined in the Rules.
A BN is any name used or signed by a natural person in connection with business transactions (e.g., receipts, contracts, evidence of transactions, signage) and includes any name used in connection with business other than the owner’s true name.
The applicant must be at least 18 years old and fall under one of these: (1) Filipino citizen; (2) non-Philippine national with a Certificate of Registration of Sole Proprietorship under RA 7042 (as amended) and at least 18; or (3) a recognized refugee/stateless person issued a written recognition by DOJ-RSPPU, whose status is not subject to cancellation/revocation/cessation, and at least 18.
The authorized non-Philippine national must submit proof that the legal/contract age lower than 18 is recognized under the laws of the home country.
At minimum: (1) one valid government-issued ID of the applicant, (2) one duly accomplished DTI-prescribed application form signed by the applicant, and (3) an authorization letter plus IDs if filed by a representative.
(a) Non-Philippine nationals: accomplished application form, clear certified copy of Alien Certificate of Registration, and clear certified copies of the required DTI registration/authority under RA 7042 (as amended) (e.g., Certificate of Registration of Sole Proprietorship/Certificate of Authority to engage in business). (b) Refugees/stateless persons: accomplished application form and clear certified copy of DOJ-RSPPU Certificate of Recognition (or present original and submit duplicate).
For online applications, a signed application form is no longer required because the accomplished online application is considered equivalent to a duly accomplished physical application form.
Key undertakings include: providing true and correct information; immediately informing DTI of changes; acknowledging that false/misleading info or documents lead to automatic denial and possible actions; agreeing to voluntarily cancel/change BN upon notice/order or when a confusingly similar prior lawful BN exists; complying with Act 3883 and its rules and other related laws; allowing post-evaluation that may lead to cancellation; consenting to disclosure of certain information; and taking full responsibility to ensure proposed BNs are registrable.
A BN should include: (1) a dominant portion (a word, group of words, or combination of letters and numerals) and (2) a descriptor (word/group of words describing the nature of business based on PSIC as listed in Annex C).
Examples of non-registrable names include those: (1) connote unlawful/immoral/scandalous activities or are contrary to propriety; (2) designate/suggest quality of goods/services; (3) are registered trade names/trademarks/business names by authorized government agencies; (4) inimical to the security of the State; (5) composed purely of generic words; (6) legally restricted; (7) officially used by government in non-proprietary functions; (8) names/abbreviations of nations/international organizations without authorization; (9) ordered/declared not registerable by administrative agencies/courts; (10) names of other persons; (11) deceptive/misleading names.
The applicant may request reconsideration within 10 working days from receipt of denial. For online applications, the request must be filed before any DTI office within the same 10 working days.
The territorial scope may be Barangay, City/Municipality, Regional, or National. Approval depends on whether the proposed BN is not similar/confusingly similar with existing BNs within the same scope, and also those wider scope categories that are national (depending on chosen scope). Territorial scope is where the BN may locate offices/stores/branches/structures and use the BN during validity.
Changing territorial scope is subject to registrability provisions and has the effect of a new application, including issuance of a new Certificate of BN Registration and new validity period replacing the previous registration.
Renewal may be filed early up to 180 days before expiration; it may be filed within 90 days after expiration (regular filing); and after regular filing lapses, renewal is still allowed within the next 90 days (grace period) subject to a 50% surcharge of the registration fee. After the grace period, renewal is no longer accepted and non-renewed registrations are cancelled.
The Certificate of BN Registration is valid for five (5) years from the date of issuance.
Voluntary cancellation may be requested if the owner ceases business prior to expiry, sells/transfers the business, determines a prior identical/confusingly similar lawful BN exists, or transfers the business outside the BN’s territorial scope. Requirements include filing Annex D application, presenting valid ID, submitting a sworn declaration that cancellation is not intended to defraud creditors and that there are no outstanding obligations or that creditors were notified, authorization letter/IDs if filed by a representative, and payment of the prescribed fee. Due diligence is conducted within 7 days.
Revocation grounds include: materially false/misleading info or misrepresentation in securing registration/renewal; failure to secure business permit within six months from BN registration; use of BN for immoral/illegal purpose or business involved in immoral/unlawful activity; contravention/failure to comply with rules; and gross violation of laws implemented by DTI. Revocation requires due notice and hearing and may be motu proprio or upon petition.