Business Plan Preparation

1
Choosing and Registering a Business Name

Module 5 – Choosing and Registering a

Business Name

Course Learning Outcomes:

1. Learn tips on how to choose a good business name.
2. Learn the step by step process on registering a business name.

Your startup needs a name, and it may be the most important decision
you make. The name of your business has a tremendous impact on how
customers and investors view you, and in today’s small world, it’s a world-wide
decision.

1. Unique and unforgettable. In the trade, this is called “stickiness.” But

the issue of stickiness turns out to be kind of, well, sticky. Every
company wants a name that stands out from the crowd, a catchy handle
that will remain fresh and memorable over time.

2. Avoid unusual spellings. When creating a name, stay with words

that can easily be spelled by customers. Some startup founders try
unusual word spellings to make their business stand out, but this can be
trouble when customers ‘Google’ your business to find you, or try to
refer you to others. Stay with traditional word spelling, and avoid those
catchy words that you love to explain at cocktail parties.

3. Easy to pronounce and remember. Forget made-up words and

nonsense phrases. Make your business name one that customers can
pronounce and remember easily. Skip the acronyms, which mean
nothing to most people. When choosing an identity for a company or a
product, simple and straightforward are back in style, and cost less to
brand.

4. Keep it simple. The shorter in length, the better. Limit it to two

syllables. Avoid using hyphens and other special characters. Since
certain algorithms and directory listings work alphabetically, pick a
name closer to A than Z. These days, it even helps if the name can easily
be turned into a verb, like Google me.
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Choosing and Registering a Business Name

5. Make some sense. Occasionally, business owners will choose names

that are nonsense words. Quirky words (Yahoo, Google, Fogdog) or
trademark-proof names concocted from scratch (Novartis, Aventis,
Lycos) are a big risk. Always check the international implications. More
than one company has been embarrassed by a new name that had
negative and even obscene connotations in another language.

6. Give a clue. Try to adopt a business name that provides some

information about what your business does. Calling your landscaping
business “Lawn and Order” is appropriate, but the same name would not
do well for a handyman business. Your business name should match
your business in order to remind customers what services you provide.

7. Make sure the name is available. This may sound obvious, but a
miss here will cost you dearly. Your company name and Internet domain
name should probably be the same, so check out your preferred names
with the right government agency.

8. Favor common suffixes. Everyone will assume that your company

name is your domain name minus the suffix “.com” or the standard suffix
for your country. If these suffixes are not available for the name you
prefer, pick a new name rather than settling for an alternate suffix like
“.net” or “.info.” Get all three suffixes if you can.

9. Don’t box yourself in. Avoid picking names that don’t allow your
business to move around or add to its product line. This means avoiding
geographic locations or product categories to your business name. With
these specifics, customers will be confused if you expand your business
to different locations or add on to your product line.

10. Sample potential customers. Come up with a few different name

choices and try them out on potential customers, investors, and co-
workers. Skip your family and friends who know too much. Ask
questions about the names to see if they give off the impression you
desire.
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Choosing and Registering a Business Name

How To Register Your Business Name With DTI Online

A crucial component of legitimizing your venture is registering your
business name with the Department of Trade and Industry.

Your business name is the identity of your venture. It’s what your clients
and customers will know you as, so choose this carefully. In determining your
business name, take note of these guidelines set by the DTI on acceptable and
prohibited business names.
“In determining whether a proposed business name for registration is
acceptable, the following factors shall be considered:
 The root word or words of the name shall be considered. (e.g. “Island”
instead of “Islander”)
 The business name should describe the nature of the business.
It should be comprised solely of any or all of the following:
 Letters, numerals, and punctuation marks that are part of the English and
Filipino language.
Names which are not acceptable:
– Those which are or whose nature of business is illegal, offensive, scandalous,
or contrary to propriety.
– Those which are identical or nearly resemble business names already
registered with the Department of Trade and Industry, the Securities and Exchange
Commission (SEC), Cooperative Development Agency (CDA), Department of Labor and
Employment (DOLE) or any other government office authorized by law to register
names, because these are likely to cause confusion or mistake in the minds of the
public and prejudice the interest of the owner of the registered business name or firm
name taking into consideration the following:
 nature of the business
 product/service handled
 spelling, sound and meaning
 use of dominant/descriptive words and
 such other factors as maybe determined by the BTRCP Director
 Names composed purely of generic words;
 Name which by law or regulation cannot be appropriated;

 Names, words, terms, or expressions used to designate or distinguish, or

suggestive of quality of any class of goods, articles, merchandise, or
service;

 Names or styles used by the government in its governmental functions;

 The names or abbreviation of names, of any nation, inter-governmental

or international organization unless authorized by the competent
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Choosing and Registering a Business Name

authority of that nation, inter-governmental or international

organizations;

 Names which are deceptive, misleading or which misrepresent the

nature of the business;

 Such other names which in the opinion of the Director are undesirable
or analogous to the above.

Log on to DTI’s Enhanced Business Name Registration System

(bnrs.dti.gov.ph). Before you can proceed with reserving your business name, you
will be required to read the Terms and Conditions, which include the aforementioned
guidelines on name registration that we shared above. Click “I Accept” to proceed.

1. Under the Business Scope segment, choose the appropriate

coverage of your business, which corresponds to the fees that you
will be settling:
Barangay – P200.00
Municipal – P500.00
Regional – P1,000.00
National – P2,000.00
Choose this carefully and be sure to select what’s appropriate for
the nature of your business, and not what’s cheapest. For example, sari-
sari store owners may select Barangay, as it is unlikely that they will be
expanding beyond their barangay. Product resellers may select Regional,
since it is possible that they will be servicing customers in different
provinces, and so on.
Moreover, your coverage will also affect future business names
that are similar to yours. So if a business name is registered in the
barangay, no one else in that barangay can register a similar name — but
this will be fair game in other barangays. The same way that names
registered regionally cannot have the same name within that particular
region, while nationally registered names will prevent other similar-
sounding business names across the entire

2. Enter your business name in the Proposed Business Name field

then click “Check Name Availability”. The system will then scour
through its database for similar or duplicate names. If your proposed
business name has been accepted without any similar existing names, a
prompt will appear with a summary of your details. To try another
name, click on “Try on a Different Name”.
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Choosing and Registering a Business Name

3. Submit other details such as the Name of the Owner, TIN Number,
Address, etc. and click on “Submit”.

4. After all details have been accepted, you will be given your
certification, which you should download. We also recommend
printing out a hard copy, which you can take with you once you visit the
DTI office. Take note of your Transaction Reference Number (TRN)
Acknowledgement found in the last page of the online application form,
which you will need once you settle your payment.

5. Pay your application fees. You may choose to do it online, through G-

Cash, or at the DTI teller.

6. After your online registration has been completed, make sure to

head to the DTI office, along with other specified requirements,
within fifteen (15) working days to apply for your Certificate of
Registration. Otherwise, your application will be forfeited and the
reserved name will be made available.

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Choosing and Registering a Business Name

References and Supplementary Materials

1. https://articles.bplans.com/business-ideas/business-names/choosing-your-
business-name/
2. https://www.business.gov.au/Planning/New-businesses/How-to-choose-a-
business-name
3. https://www.ecomparemo.com/info/how-to-register-a-business-in-the-
philippines-a-guide-to-bir-dti-and-sec-application/
4. https://www.wheninmanila.com/how-to-register-your-business-name-with-
dti-online/