According to Forbes Advisor, 20.1% of retail purchases are made online and are expected to grow by 23% by 2027. This indicates the huge need for businesses to invest in e-commerce ventures instead of brick-and-mortar stores. As e-commerce gets increasingly built up, the need to expand global reach is at its peak.
For this reason, CompRegi: Proper business registration This allows e-commerce platforms to benefit and reach more customers. ComPregi is a leading business development consulting company and service provider.
Business registration is essential for any business as it helps e-commerce businesses establish credibility, expand their reach, gain customer trust, and carve out a unique position for themselves in the market.
Business registration helps you set up your e-commerce entity. As the market is booming, there are many similar sellers. Someone else may own the rights to your company's packaging, logo, or name. To own the rights to your creative, known as intellectual property rights, you need to register your company. This protects your company's name and gives you the opportunity to apply for a trademark or copyright.
Moreover, registered e-commerce businesses can legitimately avail benefits and opportunities such as tax rebates, grants, and funding assistance schemes to aid in their growth and expansion plans. Registered businesses can also forge better partnerships, open bank accounts, and enter into agreements with raw material suppliers and distributors.
When it comes to e-commerce platforms, it's important to know your business structure. Registration helps you establish the right structure for your e-commerce business. There are many options available, including sole proprietorship, partnership, limited liability company (LLC), and corporation. Each has its own advantages and disadvantages that affect the benefits available to your business.
CompRegi states that business registration helps e-commerce ventures seeking investment: Business registration enhances the venture's professional image. It shows that the operator is committed to complying with the law (and regulatory standards). It reassures investors about the adequacy of the venture's overall management and prospects for success. Registered ventures are perceived to be higher in the trust hierarchy, making them a more reliable and trustworthy investment opportunity. Business registration is therefore crucial to increasing the credibility of your e-commerce venture and making it more attractive for investors to provide financial backing.
It has been a long time since statutory bodies started imposing heavy penalties on unregistered e-commerce platforms. A new bill was passed that imposes a penalty of up to Rs 10 lakh on businesses for not having a GST registration. However, due to greater demands and the recommendations of the GST Council, the central government has decided not to make GST registration mandatory for small business owners. However, it comes with exceptions that small businesses must fulfil. Failure to do so can result in the businesses being prosecuted for not registering their business.
However, CompRegi strongly encourages SMEs to register their company as it helps them financially. Banks are more likely to lend to companies registered with statutory bodies. Tax exemptions, liability protection, easy transferability, dual relationships etc. The demand for financing to expand the business can only be met by registering the company to attract investors and lend credibility.
That's why Compregi helps businesses by consulting on the importance of company registration. If you decide to enter e-commerce as an entrepreneur, the first thing you should do is register your company. To become a credible company, gain the trust of investors, and take the first step towards a successful business, look to the resources around you and register your company in simple steps.
