THE DEPARTMENT of Trade and Industry (DTI) said business name registrations rose 6% to 679,118 in the first half, with rapid growth noted in e-commerce enterprises.
Digital PH Group Undersecretary Mary Jean T. Pacheco said momentum is carrying over from a record performance in 2023.
“We had a banner year last year when we got the highest number of registrations of close to 984,330 business names, and the good news is that the momentum continues,” Ms. Pacheco said at a briefing recently.
She added that online businesses accounted for 17,000 of the total registrations during the half, nearly equaling their full-year total of 18,000 in 2023.
The DTI also attributed the growth in registrations to traditional businesses like sari-sari stores, as well as a strong performance by the Calabarzon region.
“This remarkable growth in business name registrations… signals a growing economy, increased job opportunities, and a brighter future for the Philippines. The DTI continues to encourage aspiring entrepreneurs to take advantage of the opportunities available and contribute to the nation’s economic growth,” she added.
Ms. Pacheco said the DTI is encouraging online micro-entrepreneurs to register as barangay business enterprises (BMBEs) to gain exemption from the Bureau of Internal Revenue’s Revenue Regulations No. 16-2023.
The DTI said that the regulations require electronic marketplaces and digital financial service providers to withhold an income tax of 1% on half of the gross remittances to online sellers.
However, BMBEs and those with a gross remittances of less than P500,000 a year are exempt from withholding, it added.
“We want to ensure that online micro-entrepreneurs are aware of the valuable benefits that BMBE registration offers,” Trade Secretary Alfredo E. Pascual said.
“By registering as a BMBE, online merchants can not only enjoy income tax exemption but also gain access to other resources that can help their businesses grow, in line with the intent of the BMBE law,” he added.
BMBEs are also exempt from the Minimum Wage Law and can access special credit windows and capacity-building programs.
Republic Act No. 9178 defines a BMBE as a business entity engaged in the production of agro-processing, trading, and services whose total assets do not exceed P3 million. — Justine Irish D. Tabile