Do I Need to Register My Business?

elaine81

Hi all need some help here.

I am selling online .sometime my customers come to my hse to do collections, my courier also send the pans & airclimber to my hse. Do I need to register for anything ?

machmach

Yes definitely need to register lor.

meinteel

All business should be registered with ARCA or they will be considered illegal. Businesses are also expected to follow good business practises like issuing sales receipt with company registration numbers, have clear exchange and refund policies as well as good bookkeeping.

justin

Well if you are talking about using your home address as the business address, perhaps you should look at the Home Office Scheme (under the purview of HDB for HDB residences and URA for private homes). There are some exceptions where no registration is required, but you'll need to be sure your trade falls under the exemption list.

If privacy is an issue and you do not wish the whole world to know where you stay, do consider registering your business with ACRA using a virtual office provider address instead of your own address. However, since you mentioned about customers coming to your place to collect orders, I am guessing you are not so concerned with privacy, perhaps because your clientele consists of decent individuals who probably will not make trouble? In such a case, I guess you can use you home address to register with ACRA.

On the hand, if you are talking about ACRA registration for your business, it is a given that you'll need to register. The updated ACRA website says this with a special mention of online business and blogshops:

ACRA link here: http://www.acra.gov.sg/SoleProprieto...o+Register.htm

So if you intend to operate this business of yours on a "continual basis" with the aim of making money, registration is required.

In case of doubt, this requirement is enshrined in a Statutory Act - Section 27(a) of the Business Registration Act (http://www.acra.gov.sg/Compliance/Penalties/BusinessRegistrationActPenaltiesforUnregisteredBus iness.htm), penalties included

There are exemptions for certain trades like hawkers and taxi drivers as well as professionals like accountants and lawyers governed by other Statutes, but as far as I know, ecommerce and online business is not one of them.

Of course, you may ask, why do so many people get away from it? Well, it's really up to you. The people who get away with it are probably operating business on a small scale, where individual transaction value is low, and do not deal with corporate customers (who are probably more discerning about vendor selection). Some people may operate seasonally, like selling pastries during Chinese New Year, which calls into question the definition of "continual"...anyone knows?

Actually, there is no big deal about registering your business. Unless you are making tons of profit, the tax implication is not significant, since you will be taxed according to personal income tax rate table (assuming you are registering a sole proprietorship), and the accounting requirements is so much less onerous vis-a-vis a company (just 4 lines I believe) and tax filing together with your other personal income. Registration fee is reasonable ($70) and yearly renewal is $20, if I am not wrong. You can do it online at www.bizfile.gov.sg

For me, as a customer, I would really prefer to deal with someone who is registered, especially where the transaction value is significant and money passes to seller before title to goods passes to me

Cheers

Disclaimer: Information is provided to the best of my non-professional knowledge and should not be taken as formal legal advice!