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New Business Name Registration fees favor micro and small enterprises
Friday, January 28, 2011
Starting 03 January 2011, the Department of Trade and Industry (DTI), through the approval of the National Economic and Development Authority (NEDA), implements the new Business Name (BN) registration fees according to territorial coverage.
DTI Secretary Gregory L. Domingo explains, “With the new schedule of BN registration fees, micro and small entrepreneurs can register their business name under Barangay as territory and pay only ₱200.00. The rate is lower compared to the previous fee of ₱300.00 per branch of business, and is favorable to micro and small entrepreneurs who are just starting up their businesses.”
“Based on our data, 95% 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,” adds Secretary Domingo.
Under the DTI’s Enhanced Business Name Registration System (EBNRS), applicants have the option to register a BN in any of the four (4) territories with its corresponding fees of: 1) Barangay - ₱ 200.00; 2) City/Municipality - ₱ 500.00; 3) Regional - ₱ 1,000.00; or 4) National - ₱ 2,000.00, plus ₱15.00 documentary stamp tax.
With the new territorial scheme of BN registration, registrants are authorized to use the BN anywhere within the territory regardless of the number of branches/outlets of the business. Thus, if a business has 10 branches nationwide, it only has to pay the one-time registration of ₱ 2,000.00 for the said branches compared to paying ₱ 3,000.00 for the 10 branches under the old scheme. Consequently, expanding the business outside the registered territory for instance from barangay to city is considered a change of location, which requires a new business name application.
Moreover, EBNRS has more flexible rules in the approval of BNs. A registered BN in a territorial scope like in a barangay can be similar with another barangay of a different city/municipality or region so long as it is not confusingly identical to a nationally registered BN or to a BN in the city/municipality or region where the barangay belongs.
Secretary Domingo states, “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 www.bnrs.dti.gov.ph, to make business name registration faster and easier.”
Secretary Domingo adds “With the simplified BN 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.”
The BN registration requires applicants to be at least 18 years of age and requires only seven (7) key information namely the business scope (territory), proposed business name (two options), Tax Identification Number (TIN), complete name, date of birth, citizenship and complete address, compared from the previous requirements of at least 21 years of age and 20 required information.
The EBNRS provides applicants with three (3) modes of BN registration for new and renewal application namely: 1) Online (end-to-end) wherein application is done at www.bnrs.dti.gov.ph and payment through G-Cash; 2) 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; and 3) purely over-the-counter application done at any of the DTI Field Office.
DTI Consumer Welfare Undersecretary Zenaida C. Maglaya stresses, “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 www.bnrs.dti.gov.ph to avoid the hassle of waiting in line.”
Undersecretary Zenaida C. Maglaya adds, “The validity period of a BN registration is five (5) years from the date of registration and may be renewed on the day of or within six (6) 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.”
For more clarifications on the Business Name Registration System, call DTI Direct 751.3330 or visit www.bnrs.dti.gov.ph.