01 August 2011

Naming businesses with tourist spots

The Business Name Law in the Philippines (RA 3883) requires businesses in the country to register with the Department of Trade and Industry (in case of a sole proprietorship) or with the Securities and Exchange Commission (in case of a corporation or partnership) before starting operations. Owners just have to fill out a form, submit their tax identification number, and think of at least three business names before paying the corresponding fee.

Yes, foreigners can establish a business there. The Foreign Investment Act (R.A. 7042 and R.A. 8179) mandates and/or guarantees interested foreigners a 40% ownership in domestic corporations, and 100% in retail trade enterprises and export businesses.

In Dubai, however, its law requires its locals to have a hand on every business undertaking. Locals--a company or an individual--must hold the majority interest of the business and have the option to ‘control’ it even without an initial investment.

That and a knowledge of the region are the two things necessary to establish a business in the said emirate. Owners just have to register and prove to its ministry in commerce that they have about $10,000-$50,000 guarantee.

Given its regulations, there really is no problem if a certain night club name its establishment with the world’s fourth best island (Travel+Leisure Magazine) found in the Philippines. One of the island’s hotels, Discovery Shores, was also listed among the 10 best hotel spas worldwide.

But Boracay is a tourist spot. Whatever happens in the night club that bears its name could reflect to the original home of the Ati tribe, a Negrito ethnic group in Panay. Filipinos must be cautious in using its repute especially since they cannot control things.


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