E-Commerce is considered as one of the best ways to explore and set up a broader market as it gives you a lot of options at lower prices and substantial distribution channels for the goods and services. The internet is not helpful in connectivity but also for growth. It saves time and energy of a person who before e-commerce had to travel for all the trade purposes.
Like every other country, Anguilla has also adapted e-commerce in different sectors. As Anguilla is a small island, e-commerce has proved itself to be a boon there too because it connects the island to different parts of the world. Anguilla has established itself to be an excellent jurisdiction for offshore businesses and e-commerce can surely be an advantageous factor to add on to its trade and commerce field. This article deals with how Anguilla has proved itself to be a good option for offshore e-commerce and how the economy is also changing with growing e-commerce trade there.
About Anguilla’s Economy
Anguilla is a British Overseas Territory, founded in 1980. The currency for the same is the East Caribbean Dollar (ECD). The island consists of a few islets which surround a small island. Fishing and trade-related to the same are the most popular there. Also, the manufacturing of boats is encouraged. The economy of the country depends on the tourism and financial sectors. The tourism sector adds up to 40% of the island's GDP. Another business of export and import involves exporting rum, salt, fish etc.
In 2017, the Budget Statement of Anguilla pointed out that the island will have a composed effect on the economy as it will have a variety like the liberalization in telecommunication, development in technological and institutional platforms for international business, services and financial sectors. This development from the ICT Strategic Plan ensured to achieve ten objectives, including jobs, lifestyle, etc.
E-Commerce in Anguilla And Benefits
Ecommerce, popularly known as internet commerce, is a trading process where buying and selling of goods and services take place through the internet, and this also includes money transfer and other monetary transactions. The first successful e-commerce sales happened in 1994 when a person sold a CD to his friend through a website in America. E-commerce kept evolving after that and made trade easy for buyers and sellers both. It is easier to find options for goods you are looking for, and it also helps the seller to reach a large number of customers. The expectation from Global Retail e-commerce sales is that it will reach $27 trillion by the end of 2020.
Anguilla planned to adopt the guidelines issued by the Organization for Economic Cooperation and Development (OECD) and the United Nations (UN). The government of Anguilla has mentioned in the e-commerce policy of the country that it will adopt a flexible and responsive way to protect the personal data of people online. According to the Electronic Transaction Act of Anguilla, “no civil or criminal liabilities will be subjected on an e-commerce service provider and intermediaries in respect of any information contained in an electronic record, but if the intermediary did not have any information about the same then it will give rise to civil or criminal liability”. Victor F. Banks, the Minister of Finance, has mentioned that company incorporating in Anguilla is easily accessible globally through Anguilla’s Commercial Online Registration Network (ACORN), which proves the involvement of Anguilla in e-commerce and trade.
As e-commerce is a great platform to start a business or trade, one should always look at the positive and negative sides of having a trading portal online. To make the e-commerce business successful, a person needs to achieve brand value. To build a successful brand for your e-commerce business, a person should keep a lot of factors in mind like social media engagement, marketing etc. There are a lot of benefits of e-commerce, and some of them are mentioned in the next segment.
Benefits Of Ecommerce
There are a lot of advantages to e-commerce, and few of them are listed below.
- GLOBAL REACH- It helps sellers to explore a lot remotely. It gives them a global reach as they can sell their product to anyone and anywhere in the world. It removes the barriers created by borders.
- COST OF TRANSACTION- The transaction cost will be reduced in e-commerce because it will remove many fixed prices in between.
- FULL-TIME AVAILABILITY- Unlike typical shops, an e-commerce shop will available 24*7, and this will be helpful for the customers.
- COMMUNICATION- Communication between the customers and sellers will also be secure. The customers can file a complaint online regarding a product or can raise a query etc.
Offshore E-Commerce Solutions
E-commerce is a common way to do trade nowadays. The internet is a popular and easily accessible service that helps e-commerce to flourish. To launch a successful e-commerce business, a person needs to make the product readily available to the consumer.
Offshore being another evolving way to incorporate a company, combining e-commerce and offshore will help to boost the business a lot. Anguilla is an excellent jurisdiction to incorporate an offshore company. The process to set up an offshore company in Anguilla is not that complicated.
The business plan for offshore e-commerce should have a plan of action and strategy to make it successful. The method should include an approach, and some of the steps for the same are-
- FORMATION OF AN OFFSHORE COMPANY- The first step to have offshore e-commerce is to incorporate an offshore company. The best way to choose a jurisdiction for an offshore is to see if that jurisdiction is tax-friendly or not. The other factor to consider is to check whether you can open a bank account there. Anguilla allows you to open a bank account and is also a tax haven; therefore, it is a great choice to have an offshore company there.
- WEB-HOSTING- The next step towards offshore e-commerce is to create a website. Web hosting provides extra protection to the owner of the website. Web hosting also includes domain name and personal data protection.
- ONLINE PAYMENT- After creating a website and promoting your product, a person will get orders and sales, but then the owner should receive the payment remotely. To solve this, a person needs to open a merchant account and link it to the website so that the customers can pay online.
Need Professional Help?
E-commerce is a great way to explore various markets remotely, and as offshore companies are emerging at a high pace now, it is advisable to have an offshore company. Though the process is not that complicated, it takes time and energy of a person who is not familiar with the process; therefore, we suggest you take help from the experts. E-commerce also includes a lot of legalities and documents to go through, and there are many other reasons to seek professional advice. Some of them are-
- It is one place for all the work to be done which makes it easier for the person to set up a business.
- The authenticity of the information given by the professional is a lot more reliable than just searching about a jurisdiction online.
- The chances of any loophole in the procedure are negligible as they deal with similar work regularly.
- Suggestions to make the business better and profitable can be received from the professional hired by you.
Therefore it is advisable to ask a professional to incorporate a business in any jurisdiction. Business Setup Worldwide is a team of experts who deal with the incorporation of companies worldwide, and that is the reason that they are reliable and trustworthy. Therefore, if you need any advice or assistance regarding the same, feel free to contact us.