The Department of Trade and Industry (“DTI”) has issued Department Administrative Order No. 18-07, Series of 2018, dated 13 August 2018 or the Revised Rules and Regulations Implementing Act No. 3883 as amended, otherwise known as “An Act to Regulate the Use in Business Transactions of Names other than True Names”.
Business Name refers to any name (1) used or signed by an individual or natural person in connection with his/her business on any written or printed receipts, contracts or any evidence of business transaction; (2) used in connection with his/her business other than his/her true name; or (3) conspicuously exhibited in plain view in or at the place where his/her business is concluded or any sign announcing a business name or style. Many parts of business is very complex, that’s why it’s maybe a very wise idea to invest in some business insurance.
The Rules provide that a Business Name should be comprised of the following, in no particular order:
- Dominant Portion – word, group of words or a combination of letters and numerals; and
- Descriptor – word or group of words describing the nature of business based on the Philippine Standard Industrial Classification (“PSIC”).
The following words or group of words may not be registered as business name:
- Those that connote activities or norms that are unlawful, immoral, scandalous or contrary to propriety;
- Those names, words, terms, or expressions used to designate or distinguish, or are suggestive of quality of any class of goods, articles, merchandise, products, or services;
- Those that are registered as trade names, trademarks or business names by any government agency authorized to register names or trademarks;
- Those that are inimical to the security of the State;
- Those that are composed purely of generic word or words;
- Those that by law or regulation are restricted or cannot be appropriated;
- Those that are officially used by the government in its non-propriety functions;
- Those names or abbreviations of any nation, intergovernmental or international organization unless authorized by competent authority of that nation, intergovernmental or international organization;
- Those ordered or declared by administrative agencies/bodies or regular court not to be registered;
- Those names of other persons; and
- Those names which deceptive, misleading or which misrepresent the nature of business.
Excluding the foregoing, any name or names, other than the true name of the applicant, may be registered as Business Name with the DTI.
The Rules require that the applicant must indicate the territorial scope of the registered Business Name, i.e., Barangay, City/Municipality, Regional or National, where the business shall be located and the Business Name shall be used during its validity. The Business Name shall be approved provided it is not similar or confusingly similar with any registered Business Name in its respective geographical division or those national in scope.
A Certificate of Business Name Registration shall be issued upon successful completion of the registration process and shall be valid for five (5) years from the date of issuance thereof.
The Business Name signage must be displayed outside the place of business to ensure visibility to the public, whereas, the Certificate of Business Name Registration must be conspicuously displayed at the place of business, at all times.
The Rules shall take effect on 09 September 2018.