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The following post does not create a lawyer-client relationship between Alburo Alburo and Associates Law Offices (or any of its lawyers) and the reader. It is still best for you to engage the services of a lawyer or you may directly contact and consult Alburo Alburo and Associates Law Offices to address your specific legal concerns, if there is any.
Also, the matters contained in the following were written in accordance with the law, rules, and jurisprudence prevailing at the time of writing and posting, and do not include any future developments on the subject matter under discussion.
AT A GLANCE:
On November 12, 1931, Act. No. 3883 as otherwise known as an Act to Regulate the Use in Business Transactions of Names other than True Names, was issued to regulate the use of names other than true names in business transactions.
The said Act provides that no person shall use or sign, on any written or printed receipt, or on any written or printed contract not verified by a notary public, or on any written or printed evidence of any agreement or business transaction, any name other than his true name, without first registering such other name with the Department and Trade Industry (DTI).
Moreover, in view of recent developments, particularly the Ease of Doing Business and Efficient Delivery of Government Services Act of 2018 or R.A. 11032, a set of revised Implementing Rules and Regulations was issued, consolidating the several DTI issuances relevant to Act. 3883, for the purpose of implementing other related legal mandates.
To date, DTI is currently revising the Department Administrative Order No. 18-07 (DAO 18-07), Series of 2018 of the Rules and Regulations Implementing Act. No. 3883.
What is a Business Name?
A Business Name (BN) refers to any name, other than your true name, that you use in connection with your business.
Can the DTI cancel my Company’s Business Name?
Yes. According to Rule IX of the DAO 18-07 or the Revised Rules and Regulations implementing Act No. 3883 as Amended, the DTI may cause the mandatory cancellation of the Business Name registration in any of the following instances:
1. For violations enumerated in Rule X, Section 1 of the DAO 18-07 after due notice and hearing;
- Upon any false or misleading information in the application for registration or engaging in acts of misrepresentation for the purpose of securing registration or renewal thereof such as submission of materially false or misleading document of false entry in the application form;
- Failure to secure the business permit within six (6) months from registration of the business name;
- Use of the business name for an immoral or illegal purpose or if the business name is found to be involved in an immoral or illegal business activity;
- Contravention or failure to comply with the provision of these rules; and
- Gross violation of any law implemented by the Department.
2. Upon order of the administrative body, court, or tribunal, which has become final and executory;
3. Upon receipt of notice of cancellation of the business name owner’s business permit or license issued by any government regulatory agency for the conduct of business;
4. Cancellation, revocation or cessation of recognized refugee or stateless person status in accordance with the Department of Justice Circular Order No. 58, dated October 1, 2012 including all future amendments, modifications, or revisions thereof.
The DTI also has the authority to automatically cancel a registered business name under any of the following instances:
- Failure to renew the business name registration within the grace period;
- Death of the owner – upon receipt of information about the death of the registered business name owner from a relative (informant). They shall sign and submit Other Business Name Related Application Form together with a clear copy of the death certificate of the registered business name owner and a copy of the relative’s valid ID.
Related Articles:
Business Name and Registration
DTI Business Registration vs. SEC Company Registration
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Alburo Alburo and Associates Law Offices specializes in business law and labor law consulting. For inquiries regarding legal services, you may reach us at info@alburolaw.com, or dial us at (02)7745-4391/ 0917-5772207/ 09778050020.
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