MANILA—Now it’s cheaper and easier to register a small business.
The Department of Trade and Industry (DTI) on January began allowing micro and small entrepreneurs to register their business names under Barangay as territorial coverage and pay only ₱200, lower than the previous fee of ₱300 per branch of business.
DTI Secretary Gregory L. Domingo said the Enhanced Business Name Registration System (EBNRS) favors micro and small entrepreneurs who are just starting up their businesses.
“Based on our data, 95 percent of businesses registered with DTI are barangay-based entrepreneurs, thus this new BN registration fees would serve as an incentive to micro and small businesses,” Domingo said.
“In line with the government’s efforts to simplify the country’s business registration procedure, DTI improved its web-based BN registration system, dubbed as EBNRS, which is accessible at http://www.bnrs.dti.gov.ph, to make business name registration faster and easier,” he said.
Under the new registration scheme, applicants have the option to register a business name in any of the four territories with its corresponding fees of:
- Barangay: ₱200
- City/Municipality: ₱500
- Regional: ₱1,000
- National: ₱2,000
(plus ₱15 documentary stamp tax)
Registered business names can now be used anywhere within the territory regardless of the number of branches or outlets of the business. So a business with 10 branches nationwide needs to pay only the one-time registration of ₱2,000, compared to paying ₱3,000 for the 10 branches under the old scheme.
At the same time, the EBNRS has more flexible rules in the approval of business names. A registered business name in one barangay can be similar with another business in another barangay of a different city/municipality or region so long as it is not confusingly identical to a nationally registered business name or to a business name in the city/municipality or region where the barangay belongs.
“With the simplified BN (business name) registration system, DTI intends to hasten the application process in order to push more entrepreneurs to register their business name, which is the first step in acquiring a business permit for single proprietorship. The department believes that the establishment of more businesses equates to creation of more jobs that eventually contributes to economic growth,” Domingo said.
Following are the requirements for business name registration:
- Complete name, date of birth, citizenship and complete address of applicant
- Applicant must be at least 18 years old
- Specify business scope (territory)
- Proposed business name (two options)
- Tax Identification Number (TIN)
With the old registration system, an applicant needed to be 21 years of age and had to comply with 20 requirements.
The EBNRS provides applicants with three modes of BN registration for new and renewal application, namely:
- Online (end-to-end) wherein application is done at http://www.bnrs.dti.gov.ph and payment through G-Cash
- Hybrid mode wherein application can either be submitted online while payment and issuance of certificate is done through the DTI Field Office or at selected SM, Robinsons, and Mail and More outlets, or application and payment can be done online while BN certificate is claimed at any DTI Field Office or at selected SM, Robinsons, and Mail and More outlets
- Purely over-the-counter application done at any of the DTI field office.
“With the influx of business name renewal application at the start of the year, DTI encourages applicants to register or renew their BN online through http://www.bnrs.dti.gov.ph to avoid the hassle of waiting in line,” said DTI Consumer Welfare Undersecretary Zenaida C. Maglaya.
Undersecretary Zenaida C. Maglaya said that the validity of a business name if five years and may be renewed on the day of or within six months from expiration.
“Those businesses that have been registered prior to the implementation of the Territorial Scheme of BN Registration will be considered as nationally registered. They will be required to select the territory upon the renewal of their registration,” she said.
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