E-commerce and online business sector is one of the fastest growing fields and Starting an Online Business in Singapore can be a rewarding business option for many individuals. However, before starting a business there are few things one should consider, such as the pros & cons of online business, resources required and the technical part. Additionally, one must know about the types of online platform, how to select the best types based on business category and finally the legal considerations. The major factor to consider before starting an online business in Singapore is to know the details of sales operations. This includes the payment gateway or how to do sales transactions, how to get online orders and receive payment from customers, how to deliver the order with logistics and supply chain and also the after-sales services.
Security is also an important factor for starting an online business in Singapore and one should take security as a serious issue. There are many types of frauds risks present in online and an online business owner must know the types of frauds and scams, how to reduce or prevent online fraud. There are many tools available that provide protection against online threats. The potential business owner must know how to use them efficiently. Another important factor in online business is the marketing. One should not think of going anywhere without using a proper marketing strategy. For starting an online business in Singapore, there are many online and offline tools are available and potential business holder should know how to use those tools according to their suitability.
Many people consider online business is just to open a website and start selling their product and services. Online business is more than this and it requires a certain amount of capital, precise planning, time and the creativity and innovation. The first step for starting an online business in Singapore is to do market research and plan accordingly. The future online business owner should decide what they should sell and with adequate market information, they may find out the potentiality of their ideas. They should identify the potential market segment, potential customer, demographics, SWOT analysis, competition, business plan, financial forecast etc.
After completing the research, analysis and planning one should learn about the regulatory bodies for the concerned field of business in Singapore. Sometimes complying with local laws may increase the operation cost and companies may receive tax benefits or grant from the government for obeying specific laws. So, potential business holders should learn about these legal matters before starting an online business in Singapore. Much potential business personnel has a question like, do I need to register my online business in Singapore? Or do I need to take online business license in Singapore? The answer to this question is yes; before you continue to execute your plan and activity, you just need to incorporate your business. There are many structures available in Singapore and you have to choose which suits you best. Most online business holders choose to incorporate their business as a private limited company. This is because; PLC in the company has many benefits such as limited liability, tax incentives, image credibility etc.
For starting an online business in Singapore, you must know the regulatory bodies in Singapore and you need to register your online company with proper authority and take online business Singapore license. If you plan to establish a company that broadcast any media then license to be acquired from Singapore Broadcasting Authority (SBA). The owner of the e-commerce sites does not need to take license separately for broadcasting as they consider to receive ‘class license’ automatically in Singapore. In addition with e-commerce site owners and all class license holders must comply with internet code of practice and by this law, they can’t broadcast any material that is harmful to public morality, public order and public security. Other than SBA license there is separate licensing authority for different types of online business in Singapore. For example, if any company willing to have provision for online financial services and products then they must have to govern their company according to the current laws and regulation for a financial service provider in Singapore.
They must follow the company act and also the recommendation provided for the securities made through the internet. If any company wishes to conduct promotional activity then they need to comply with the common gaming house act and also the public entertainment act. For starting an online business in Singapore in web advertising category then the company should comply with the Singapore code of advertising practice and also the guidelines issued by the Singapore code broadcasting authority. The merchants should proceed with caution for any online promises or making a contract, as these types of contacts may bound with Singapore contract law and also bound by the Electronics transaction act (ETA). Additionally, they may need to follow the consumer protection laws such as Unfair Contract Terms Act (UCTA) or Sales of Good Act (SOGA) or Misrepresentation Act (MA).