Since the beginning of the Covid-19 epidemic, people have been dramatically increasingly using various forms of technology. As a result, the business environment for online start-ups and businesses has never been more favorable than it is today.
However, launching an eCommerce store can be challenging, so we have compiled this guide to assist you in establishing an online presence in Singapore.
We will discuss optimal business practices, taxation, legislation, the architecture of your internet business, and much more.
Step 1: Plan Your Business
A strong basis is essential to the success of any company, regardless of whether it operates online or in traditional retail locations.
And laying this foundation always begins with having a solid concept for a business. But what exactly makes for a sound proposition?
That is not difficult. One of the most important criteria to consider is the degree to which an idea for a business may successfully address the issues faced by your target market.
Therefore, during the planning phase of your online business, also referred to as the problem discovery phase. You need to talk to your potential customers and conduct extensive primary and secondary market research to understand their pain points and how you can help solve them.
Step 2: Create a Minimum Viable Product (MVP)
After coming up with a company concept that addresses the issues faced by your target market in a way that they are able and ready to pay for, the next step is to develop a minimum viable product (MVP) (MVP).
A prototype of your product or service that contains the bare minimum set of features or capabilities necessary to attract your first paying clients is known as a minimum viable product (MVP).
The version of your ultimate product is the least expensive and the one with the fewest features. Its sole purpose is to generate sufficient income and customer feedback so that you may continue developing your final product.
Before investing all of your money in a product or service that has not been fully thought out, the goal here is to have a deeper understanding of the challenges that your customers are experiencing and the potential answers to these issues.
Step 3: Understand Singapore’s Regulations for Online Businesses
All content on the internet in Singapore, including online companies that sell goods and services, is regarded as broadcast media content per Singaporean law.
As a direct consequence, it falls under the jurisdiction of the Singapore Broadcasting Authority (SBA) and the Broadcasting Act of Singapore.
Even though some online businesses, which are commonly known as “class licensees,” are automatically licensed . As a result, you do not have to apply for one to operate as an online business. You should still check to see if you need a license depending on the product or service you plan to sell to the general public. This can be done by double-checking to see if you need a license.
In addition, the products or services you sell through your eCommerce business could subject it to additional regulations. Because of this, you should get in touch with the appropriate authorities and inquire whether or not these regulations apply to your company to determine if they do.
When discussing taxes, it is essential to remember that Singapore applies a territorial foundation of taxation. This means that taxes are levied on income earned in Singapore, money generated from Singapore, and income brought into Singapore from outside the country.
It may be more challenging to pinpoint the precise location from which online businesses generate income due to the fact that these businesses engage in borderless, electronic transactions and do not trade in actual goods or services.
However, it is extremely important to be aware of this fact because of its implications for the amount of business taxes you will be required to pay. For instance, it will determine the amount of the Goods and Services Tax (if any) you are responsible for paying.
Step 4: Incorporate Your Business
Before you begin conducting business in Singapore, you must first register your company with the Accounting and Corporate Regulatory Authority (ACRA), Singapore’s equivalent of the Department of State. You will want to register it as a web-based business if it is an eCommerce enterprise.
Your company can be organized as a sole proprietorship, a general partnership, a limited liability partnership (LLP), or a limited liability company if you choose to do so. These four business structures are used most frequently nowadays (LLC).
The following are the fundamental prerequisites that must be met before a web-based business can be registered in Singapore:
- A registered business address in Singapore
- A company auditor
- A unique business name
- Paid-up capital
- The personal details of the partners, directors, and shareholders
- A statement outlining the business activities
- A company constitution
- Personal identification documents of each company member
- At least one resident director in Singapore who can also be a shareholder in the company
- At least one resident director in Singapore who can also be a shareholder in the company
- At least one resident director in Singapore who can also be a partner in the
Step 5: Build the Infrastructure of Your Online Business
When starting an online business, it is of the utmost importance to ensure that your digital infrastructure is of the best possible standard to achieve success.
If visitors to your website consistently come across mistakes or cannot submit orders, you risk losing hundreds of thousands of dollars in income.
Therefore, before beginning your company, make sure to give serious consideration to the following essential aspects of its infrastructure:
- The design, hosting, security, and development of your website
- The processing of online payments for orders
- The method by which you will deliver orders to customers
- The online store platform that you should use (for example, Shopify versus WooCommerce)
- Marketing and advertising your website through the use of good Search Engine Optimization (SEO) practices
- Managing your customers’ personal information in a secure manner
- Providing an IT infrastructure for your business’s operations, website, and support services