The Department of Trade and Industry (DTI) 11 has urged the public to report companies whose operations do not adhere to their declared types of business.
DTI 11 Regional Director Maria Belenda Q. Ambi explained that they received approximately 12,000 registrations of business names, but some registrants usually operate business not related to those that they applied for.
Ambi said public can report these businesses to the agency so they can check their database if their business names were registered. The agency will then refer to the local government units (LGUs) to verify if these establishments have secured business permits to operate.
“If they have articles of incorporation and other similar documents, we will tap the Securities and Exchange Commission (SEC) for verification, afterwards we will validate it in the city hall if they also secured business permits there,” Ambi said.
She said SEC will inspect their mode of business if it matches their declared business operations as securing only a business name certification in DTI does not give them an absolute right to operate.
According to the Business Name Law (Republic Act 3883), business name registration with the DTI is only for sole proprietors and not a license to run a business. It is also illegal for anyone to use any name for a business other than the owner’s true name without first registering the business name with the DTI.
The call came about after reports of the proliferation of the massive presence of supposed companies that are into promising high returns for investments which, according to the government, is similar to a Ponzi scheme, an illegal investment scheme in the 1920s which was named after the one who created it, Charles Ponzi.