Businesses are required and recommended to submit and register their legalized name in every city, province, country, or state in which they manage and perform their business or enterprise. A company, enterprise, or organization can have both legalized names and trade names. The legalized name appears and privatized in legal and government documents while trade name may be utilized for advertising as a nickname of the company.
What Is Trade Name
Trade name frequently known as DBA or “Doing Business as.” It is a name that certain business use for broadcasting, advertising, and trade activities with their clients, customers, vendors, and the community. It is often view and encounter on the websites, advertisements, and signs on the streets. Trade Name may not be trademark and can be different from the legalized name of the business that has been register. Sometimes trade name is misuse and confuses as a trademark in the business industry but legally they are both different from each other. A trade name is an official nickname or name of an enterprise, business or company while trademark provides legal protection and recognition for a certain brand by the use of logo, name, symbols or slogans.
Benefits of Trade Name
- Brand recognition and awareness. By applying for a trade name or DBA, the company will be recognize to the public and can be distinguish with what type of goods and services they offer. It is easier to market by using a catchy trade name.
- Intensify and strengthen privacy. Applying for a business trade name will give the business a layer of strong privacy through regulating the use of their distinctive and personal business name in their everyday negotiation and activity matters.
- Versatility and flexibility. Applying for a trade name allows the business to expand into the market with new entity and allowing the business to grow.
- Low cost. Applying for trade name is easy and affordable. A business can set up its alias in a proportionately reasonable price.
Requirements for applying a trade name
- Trade Name Registration form
- 2 valid IDs
- A format for business trade name will be: specialization line for business, define the business nature
- Original copy of at least government-issued ID
Process in applying for a trade name
Registration at Department of Trade and Industry
- The applicant must bring at least two valid IDs and go to the DTI office.
- Request for an application form.
- The applicant will be request to issue three distinct name choice, rank in order of priority and liking. For example 1. BAC Trading, 2. ABC Trading, 3. CCC Trading Enterprise. Once the name is approve, it is reserve to give the applicant the time to complete the next process.
- Search for the website of DTI and look if there is a similar existing name.
- The applicant will complete the trade name registration application form.
- After the applicant submitted the requirements, he or she will proceed to the registration fee. She or he will receive a name request number. The registration fee depends on the business area and scope plus PHP 30 documentary stamp:
- Barangay- PHP 200
- City – PHP 500
- Regional- PHP 1,000
- National- PHP 2,000
- The trade name will be approved and issue a certification of business trade name registration.