If you are an online seller in the Philippines and your profit exceeds 250k per year, you need to register your business in BIR and pay taxes. Recently the BIR releases a memorandum asking for online sellers to register their businesses.
Meanwhile, if you are planning to start your business, it is important to have some ideas on how the business registration process in the Philippines.
Business registration process in the Philippines
The usual business registration process would be:
- DTI (if Sole proprietor)/ SEC (if a corporation)- You need to register your business name in DTI to get a DTI permit/certificate. You can pay and download your certificate online.
- LGU Mayor’s permit- But based on the newly release RMC 60-2020, BIR omits the Mayor’s permit to help ease the business registration process.
- Bureau of Internal Revenue (BIR) registration
We will be focusing on getting your DTI permit online. Since this is the first and important step in registering your business.
Every business must have some kind of trademark name to differentiate it from the others.
What is a Business Name?
Business Name (BN) shall refer to ANY name that is different from THE TRUE NAME OF AN INDIVIDUAL WHICH IS USED OR SIGNED in connection with her/his business on any written or printed receipts, including receipts for business taxes, duties and fees, and withdrawal or delivery receipts; any written or printed evidence of any agreement or business transaction; and any sign or billboard conspicuously exhibited in plain view in or at the place of her/his business or elsewhere, announcing his /her business.
Important reminders in choosing a Business Name
Ensure that your proposed Business Name is:
- not a term or word or group of words that connote activities or norms that are unlawful, immoral, scandalous or contrary to propriety (e.g. Boobs Massage & Spa);
- not a name, words, terms or expressions used to designate or distinguish, or suggestive of quality, of any class of goods, articles, merchandise, products or services;
- not those that are registered as trade names, trademarks, or business names by any government agency authorized to register names or trademarks;
- not a name that is inimical to the security of the State;
- not composed purely of generic word or words (e.g. The Drugstore, Health Care Clinic);
- not a name which by law or regulation is restricted or cannot be appropriated (e.g. Red Cross, Red Crescent, ISIS);
- not officially used by the government in its non-proprietary functions (e.g. NBI Private Investigation Services, PNP Security Agency);
- not a name or abbreviation of any nation, intergovernmental or international organization unless authorized by a competent authority of that nation, inter-government, and international organization;
- not ordered or declared by administrative agencies/bodies or regular courts not to be registered;
- not a name of other persons; and
- not deceptive, misleading, or misrepresent the nature of my business.
DTI Business Name Registration System (BNRS)
DTI Business Name Registration System (BNRS) is a web-based portal that allows end-to-end registration of business name (BN) for sole proprietors. To make BN registration more convenient, applicants may submit applications, pay fees, and download their Certificate of BN registration through the BNRS.
It also allows new and old entrepreneurs to get their DTI permit online.
How to register your business in DTI online?
Step 1– Visit the DTI BNRS( Business Name Registration System) in this link: https://bnrs.dti.gov.ph/registration
Read the terms and conditions and click the “I agree” button.
Step 2– Input your details accurately. • A confirmation pop-up will appear and if correct, click “Proceed”.
• Note: Applications filed by non-Philippine nationals, recognized refugees and stateless persons shall be processed only upon submission the applicable supporting documentary requirements at any DTI Office and payment of applicable fees.
Step 3-Fill out the required fields pertaining to your Business Scope and Business Name.
Select the Territorial Scope of your business (i.e., Barangay, City/Municipality, Regional, National).
Enter the Dominant Name of your Business (Note, the Dominant Name refers to the main identifying words or numerals attached to your Business Name)
Under Business Name Descriptor, type keywords that describe your business (Note: The Descriptor describes the nature of your business based on the Philippine Standard Industrial Classification)
A proposed Business Name will appear on the bottom field. Click “Check Name Availability”. If the BN submitted is available, the system will flash the following result (Figure A):
(Note: the system will automatically verify if the proposed Business Name is available for use. If not, repeat step 3)
• A confirmation pop-up will appear and if correct, click “Proceed”
Step 4-A Reference code will be assigned to you. Write it down because you will use it on your BNRS transactions.
Fill-out the remaining blank fields pertaining to the following sections:
• Business Address
• Personal Information
• Residence Address
• Other Details
Upon completion of Step 5, a series of accomplished forms will appear, please ensure that all data provided during the registration are correct and valid including the email address. Carefully review the accomplished form and confirm.
Signify conformity to the Undertaking by clicking “Proceed”. You may download the Undertaking for your files.
The payment section will subsequently appear whereupon you should select the payment method prescribed by the system (e.g. DTI Teller, GCash, PayMaya, Landbank Link.Biz, Credit/Debit Card). Effect payment via the payment channel selected.
• Pay the registration fee within seven (7) calendar days from the date of application. Otherwise, the BN application will be deemed abandoned and subsequently nullified.
• Once payment transaction is successful, the Certificate of Business Name Registration will be sent to your email.
Upon confirmation of payment, click “Register New Business”. Congratulations! You have successfully registered your Business Name.
How much is the Payment for DTI permit?
The payment depends on the scope of your business. refer to the table below:
|Fee (in Php)||(2,000.00)||(1,000.00)||(500.00)||(200.00)|
Total fees to include Php 30.00 documentary stamp tax (DST). You can choose to pay it online. BNRS has an online payment facility that accepts GCash, PayMaya e-wallet, and Credit/Debit Card.
How to pay your DTI permit through Gcash?
You can use Gcash as a form of payment in getting your DTI permit. If you don’t have gcash app yet, download it on your phone through this link: https://gcsh.app/r/a5GmzVb.
Make sure to fund your Gcash first. Follow the steps on how to register your business name in DTI above, after filling out your details, choose Gcash as a form of payment.
Enter your Mobile number and 4 digit MPIN, then download your DTI certificate through email.
You can also opt to pay through PayMaya or your Debit/Credit Card.
How to pay your DTI permit through PayMaya?
If you don’t have the PayMaya app yet installed on your phone, you can download it here: https://p85qk.app.goo.gl/4M9Y. You can put my invite code which is 4dpp7ry. Put some funds on your PayMaya.
Follow the steps above on how to register your business name in DTI, fill out your information, and choose Online Payment as a payment method and choose PayMaya. Type in your mobile number that you registered in PayMaya and your password. A one time pin will be sent to your phone, input it and click continue. Then click proceed to pay. That’s how easy using the online payment to pay for your DTI certificate online.
How to print your DTI permit Online?
To print your DTI permit online, go to the website of the DTI BNRS https://bnrs.dti.gov.ph/ and click business name services. Under it, you will find the “Transaction Inquiry”.
Click “I agree on the terms and agreement and input your Reference Code and a verification code will be sent to the email you use in the registration. Use your code to access your transaction summary. Download your certificate.