The Department of Trade and Industry (DTI) recorded fewer business registrations and renewals last year, with total registrations down by nearly four percent amid the country’s slower economic performance.

Data from the DTI’s Business Name Registration System (BNRS) showed that business name registrations dipped to 1.02 million in 2025 from the 1.06 million recorded in the prior year.

Of the year’s total, 882,821 were new business names, while 137,629 were renewals.

The wholesale and retail trade, which also covers the repair of motor vehicles and motorcycles, as well as personal and household goods, was the leading sector last year with 544,779 registrations or 53 percent of the total.

Accommodation and food service activities ranked second with 139,388 applications, followed by manufacturing with 57,602 registrations, real estate activities with 53,424, and transportation and storage with 46,615.

In terms of location, business activity was at its highest in Calabarzon, with filings last year reaching 192,017.

Metro Manila logged the second-highest business name registrations with 155,314, followed by Central Luzon with 140,706 registrations, Western Visayas with 65,189, and Central Visayas with 63,151.

January posted the highest number of registrations last year at 236,105 applications, reflecting the start of many businesses during the month.

On the other hand, December recorded the lowest with only 41,373 registrations amid the holiday season.

While both January and December, along with October and November, outperformed the same months in 2024, total registrations were down in the other eight months.

Rizal Commercial Banking Corp. (RCBC) chief economist Michael Ricafort said the decline in registrations last year was consistent with the country’s slower economic growth, with the average gross domestic product (GDP) growth in the first three quarters settling at five percent.

Ricafort also pointed to protectionist policies and other shifts in global trade, which not only reduced GDP growth in terms of exports, but also reduced opportunities for businesses looking to ship their goods.

The massive corruption scandal over flood control projects was also influential as it made entrepreneurs hesitant about opening a business related to public infrastructure.

“Political noise especially related to the flood-control anomalies that reduced or slowed down infrastructure spending, thereby reducing business opportunities [for] businesses in the supply chain of various infrastructure projects,” Ricafort said in a Viber message.

For 2026, Ricafort said an increase in business name registrations would hinge on governance reforms and faster economic growth.

As of Jan. 11, business names registered with the DTI reached 64,385.