DTI DEPARTMENT ADMINISTRATIVE ORDER NO. 12, s. 2006

Law Summary

Introduction

This document amends certain provisions of the Department of Trade Administrative Order No. 80, series of 1982, as amended, which governs the registration and use of business names in the Philippines under Act 3883 (Business Name Law).

Legal Framework

Act 3883 (Business Name Law): Mandates the DTI to regulate business name registrations and outlines the Director of the Bureau of Commerce's duties in enforcement, including penalties for violations.
Executive Order No. 428: Directs simplification of rules and regulations to promote ease of doing business and encourage investment.
Executive Order No. 557: Establishes an Anti-Red Tape Task Force aimed at reducing bureaucratic processes and costs.

Amendments to DTAO No. 80

Section 1: Deletion of Application Requirements

Provision: The requirement for applicants to submit two (2) passport-size pictures has been removed.
Impact: Simplifies the application process for business name registration.

Section 2: Automatic Cancellation of Expired Business Names

Provision: A business name that is not renewed within six months of its expiration will be automatically canceled from the records.
Key Definitions:
- Natural or Juridical Person: Refers to any individual or legal entity applying for a business name.
Important Requirements:
- Businesses must renew their names within six months post-expiration to avoid automatic cancellation.
Consequences: Failure to renew results in the loss of the business name registration.

Implementation Timeline

Effectivity: The Order takes effect fifteen (15) days after publication in two newspapers of general circulation.

Signatories

Signed by:
- Peter B. Favila, Secretary of the Department of Trade and Industry
- Zenaida Cuison Maglaya, Undersecretary, Consumer Welfare and Trade Regulations Group
- Victorio Mario A. Dimagiba, Director, Bureau of Trade Regulations and Consumer Protection

Key Takeaways

The amendment streamlines the business name registration process by eliminating unnecessary documentation and clarifying renewal requirements.
Automatic cancellation of business names that are not renewed timely underscores the importance of compliance with renewal timelines.
The changes align with broader government efforts to enhance business facilitation and reduce red tape.

This summary encapsulates the significant changes introduced by DTI Department Administrative Order No. 12, s. 2006, and highlights the implications for business name registration within the regulatory framework.