Sole proprietorships seen to increase in 2015 – DTI

CEBU, Philippines- The Department of Trade and Industry Cebu is expecting more sole proprietors to be registered this 2015 compared last year, noting that economic activity has increased.

In 2014, DTI registered 13,770 business names in Cebu, exceeding its 13,000 target and higher compared to 12,261 listed in 2013. Its 2015 estimate for registrants could likely go up by 10%.               

The trade agency, however, claimed business name registrations were decreasing in recent years from 14,050 registrants in 2011, the highest recorded for the last 14 years. In 2012, it registered 12,445 sole proprietors.

One reason of the decline is the "no corporation, no branch, no franchise" policy in BN registration, said DTI Cebu consumer welfare and business regulation chief Zaide Bation.

In September 2008, the DTI ruled corporations would no longer have to register their business names with the department. It also came out with the same ruling for franchises and branches in 2010.

"Majority of Cebu's businesses are corporations and partnerships," it said. These kind of enterprises are registered with the Securities and Exchange Commission. "Big businessmen at municipalities have BNs already," it added.

Last year, the aggregate capitalization of registered sole proprietors in Cebu totaled P5.4 billion, generating 29,221 jobs. That is higher compared to P1.01 billion in capital and 22,064 jobs generated in 2013.

Every firm has likely two workers and over 300,000 in capital.

The regional DTI has forecast around 21,971 sole proprietors in Central Visayas to register this year, with Cebu having a 60% share of total registrants followed by Negros Oriental, Bohol and Siquijor.

"For Cebu, we hope [we can surpass] the 2014 figures," Bation told The FREEMAN in an interview Monday. "We do enforcement to encourage unregistered businesses to register with us."

She said the local agency has worked with local government units to have unregistered enterprises in cities and municipalities listed with business names. Most of local business registrants come from Cebu City, she said.

DTI Cebu has projected an average 1,000 to 1,500 business registrants in the first quarter this year. The Q1 is normally the season for registration, Bation said.

In January 2014, the department listed 1,546 enterprises, the highest among the 12 months; while December registered 669, the lowest.

The trade department recently advised sole proprietors they could renew their BN registration online through the Business Name Registration System in its website. A business name lasts for five years and have to be renewed if the business will be continued. (FREEMAN)