It’s no secret that Singapore’s online-based businesses have been growing tremendously over the past couple of years, to a point of raking in billions of dollars annually. By the end of 2020, for instance, the city-state’s ecommerce revenue is projected to hit US$ 2.4 billion. Then in the subsequent years, it’s set to experience an average annual growth rate of about 12.1%, which will cumulatively push the overall market volume to US$ 3.8 billion by 2024.
Now, in case you’re wondering, the truth is, yes- you can join this ecommerce bandwagon and be part of the digital revolution. But, while starting an online business might seem like a straightforward process at first, it can all get pretty confusing when it comes to the real thing.
You might, for example, be tempted to proceed without incorporating your business with the registrar of companies. After all, aren’t ecommerce ventures supposed to run virtually within the cloud? Can such systems of operation, logically, exempt you from Singapore’s official business registration process?
Ok, we’ll admit it- online businesses have a unique framework. Unlike regular companies, they happen to transact with customers and clients via web-based platforms.
These are all undeniable facts. But, make no mistake about the online ventures. Although they operate differently, the bottom line is, they are still businesses. As such, Singapore requires them to be incorporated officially, just like their offline counterparts.
So, if you happen to find yourself asking the question "Do I need to register my online business in Singapore?" the simple answer is yes -- you do need to register even your online business in Singapore. There are no two ways about it.
Now, for the sake of clarity, you can go ahead and confirm the legal details from Section 5 of Singapore’s Business Names Registration Act (BNRA). The statute, which was passed in 2014, requires pretty much all types of businesses to file for registration with the official registrar of companies in Singapore, the Accounting and Corporate Regulatory Authority (ACRA).
However, with that said, we admit you might find some exemptions in the act. But, don’t let them mislead you. All companies and business owners intending to carry out profit-generating activities are required to register their business in Singapore. This includes even ecommerce-based ventures.
And that’s not all. Turns out that in addition to the standard corporate laws, online businesses are expected to comply with, among other laws, the Internet Code of Practice (ICP). This is a special set of rules that seek to regulate your web publications and activities. Hence, you can bet that Singapore’s Infocomm Media Development Authority (IMDA) will be tracking your website to ensure full compliance.
And speaking of which, you might also want to familiarize yourself with Singapore’s Broadcasting Act. It explicitly outlines what you’re allowed to publicly broadcast through your ecommerce website, as well as the various licenses you should apply for.
It’s worth noting, though, that the licensing and registration specifics depend on the type of online business you intend to set up. Not all commercial websites in Singapore are considered online businesses. What’s more, not all online businesses in Singapore run entirely from the web.
Now, that begs the question, what does it take for your Singapore company to be officially categorized as a Singapore online business?
Whichever group you fall in, ACRA requires you to fully register the business before rolling out your operations. Subsequently, you’ll notice that while business registration helps Singapore’s statutory bodies keep tabs on every single corporate entity, it also benefits businesses in multiple ways.
Here are the details...
In essence, you should consider registering your web-based business with ACRA because it’ll ultimately:
As you’ll come to notice, the business registration process in Singapore is not the same across all online companies. The incorporation requirements, cost, and compliance procedures vary according to, among other parameters, the type of corporate structure you’ve selected for your business.
Singapore Sole Proprietorships have the simplest and cheapest registration process- but eventually, they end up with the fewest corporate benefits. Singapore Limited Liability Companies, on the other hand, attract very technical compliance procedures- but they ultimately make up for that with huge corporate perks.
As for Partnerships in Singapore, you could say they offer a balance of both worlds. The business incorporation process is a little complicated and costlier than registering a Singapore Sole Proprietorship business, but cheaper and simpler than applying for a Singapore LLC business.
Now, when you take everything into consideration, you could say that the basic requirements for registering a conventional web-based Singapore business include;
Click here if you want an in-depth guide on how to start a non-online business in Singapore.
Ecommerce, particularly within Singapore’s favorable business environment, offers immense business potential. You could potentially grow your idea into an incredibly profitable online enterprise. It all depends on how you approach your business strategy -- right from planning and registration, to compliance and execution.
No need to sweat the technical details, though. Our extensively-experienced Singaporean corporate experts are here to help you with all the registration intricacies company incorporation, as well as guide you throughout your online business journey. Get in touch with us today and let’s have a chat about your Singapore business name, Singapore company incorporation laws, corporate taxation, payroll administration, company secretary, or compliance filing.