2011-12-28

NPM 037-2011

Requesting Entity: Berlyn Enterprises

Issues Concern: Availment of Track Record under a Newly Registered Business Name

 

Details

Whether a new business can avail of the track record of an existing enterprise, owned by the one and the same person, under Republic Act (RA) 9184 and its Implementing Rules and Regulations.

[T]he track record gained by the owner of a sole proprietorship may be used by another enterprise of the same nature established and registered by the same owner. The rationale for this is that the business experience gained redounds, not to the sole proprietorships that has no juridical personality, but to the owner of the business itself.

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[I]t is our considered view that a newly registered sole proprietorship may use the experience of another sole proprietorship with the same business owned by the same individual. Incidentally, if one of the sole proprietorship is blacklisted, such blacklisting will extend to all sole proprietorships owned by the same individual.