Below we will analyze some general facts about starting an eCommerce business, as well as some of the countries which are the most open and encourage the creation of such companies. Company registration – The first step in opening an eCommerce business No matter the country you choose to set up your eCommerce business, the company registration procedure is mandatory. For online companies, this is a must if we are to consider that most of them sell goods to clients all over the world and that the European market is one of the greatest in the world. We will focus here on Singapore, Hong Kong, Japan, and Thailand in Asia, and Ireland, Cyprus, Germany, and the Netherlands in Europe. Registering an e-commerce company in Singapore implies incorporating a business with the Accounting and Corporate Regulatory Authority for which any foreigner will need to find a local address, appoint a local director and secretary and register a domain name. You can discover more details about the process of registering a company in Singapore by watching this short video: With respect to the registration of the domain name, the future business owner must first find a hosting service, then register the domain name with the Singapore Network Information Centre. On the other hand, starting any type of business in Japan implies lengthier procedures, therefore one should know that having their homework done before starting the actual registration of the company is recommended. Foreigners who want to open eCommerce companies and also move to Thailand must have at least one local partner and must be at least 21 years old. The company can use the .ie or the .com domain name. The top-level domain name in the Netherlands is .nl, however .com domain names can also be easily registered with private domain name registrars accredited by the Foundation for Internet Domain Registration.
Apart from connecting people, the Internet now allows for the creation of businesses for those who want to quit their jobs, who have an innovative idea or simply want to have their own company.
Moreover, it allows these persons to set up their companies in other countries around the world, which can be closer or further from home.
When it comes to ideas for starting a business, the same Internet is one of our times’ greatest providers. The number of companies which can operate online has increased substantially in the last few years and if we stop to think a little, eCommerce companies have become some of the most popular in the world. They also have one of the greatest penetration rates on various markets, if we are to consider their success.
Below we will analyze some general facts about starting an eCommerce business, as well as some of the countries which are the most open and encourage the creation of such companies.
Company registration – The first step in opening an eCommerce business
No matter the country you choose to set up your eCommerce business, the company registration procedure is mandatory. This implies a lot of research prior to starting the business, drafting a business plan and a deep analysis of the market in order to determine the products or services that the market requires. This will also have a great influence on the company’s success after the first year of business.
Back to what it takes to register the company, it must be taken into consideration that each country has its own laws. These laws usually imply the commercial legislation, the eCommerce and internet-related laws, the consumer protection regulations and the latest GDPR (General Data Protection Regulation) which applies to companies operating in Europe or with clients in European Union countries. For online companies, this is a must if we are to consider that most of them sell goods to clients all over the world and that the European market is one of the greatest in the world.
So, the company incorporation with the commercial register in the country the online business will operate in is mandatory. Following that, the domain name and the website creation are the next natural steps. These must also comply with the norms imposed by the domain name administrators in those countries. Special considerations, such as the number of characters and words and the sub-domain levels created specifically for eCommerce or online companies must be taken into account at this stage.
Once the company is up and running, the business owner should consider opening a merchant account. This is a bank account designed for processing online payments, therefore it is a must to link it to any type of eCommerce company. It can be opened with a local bank or with a provider that offers such services.
These are the general aspects referring to starting an eCommerce company. We will now focus on some of the best and sought after countries by foreign investors for starting eCommerce businesses. Asia and Europe are two of the continents representing large eCommerce companies. We will focus here on Singapore, Hong Kong, Japan, and Thailand in Asia, and Ireland, Cyprus, Germany, and the Netherlands in Europe.
How to start an eCommerce business in Singapore
Singapore is one of the most developed eCommerce hubs in Southeast Asia and many eCommerce startups which have expanded on a global level in the last few years are registered here.
Registering an e-commerce company in Singapore implies incorporating a business with the Accounting and Corporate Regulatory Authority for which any foreigner will need to find a local address, appoint a local director and secretary and register a domain name. Also, the limited liability company is recommended when opening any type of company in Singapore as a foreigner, as its incorporation process takes one week. You can discover more details about the process of registering a company in Singapore by watching this short video:
With respect to the registration of the domain name, the future business owner must first find a hosting service, then register the domain name with the Singapore Network Information Centre. Also, the domain name should contain the .com.sg sub-domain in order to undertake commercial activities.
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