One of the thriving sectors at present is e-commerce. With the development of technology, every conceivable business area has been invaded by the e-commerce industry. Amazon is one of the increasing instances of e-commerce behemoths that have a worldwide reach.
To gain an additional benefit, the business owners want to move forward with tax-haven nations. Therefore, business investors have been consistently investing in these companies.
Offshore governments are trusted sources that let business investors launch their corporate organizations with tax exemption advantages. Learn more about the working mechanisms of tax havens.
Countries like Singapore have welcomed business investors to come out and participate in e-commerce enterprises due to their exponential growth, especially after the Covid-19 pandemic.
E-commerce Offshore Company in Singapore
Singapore's e-commerce sales are anticipated to expand from US$8 billion in 2021 to US$9 billion in 2022. However, this was considerably slower than the sales increase of 73% in 2021.
However, shoppers in this country paid more per transaction this year, and the size of the average online basket increased from 119 to 131 dollars in 2022.
Therefore, offshore e-commerce company formation is highly preferred for investors looking for a drop shipping business or building an online store. Singapore, a high-rated tax-haven jurisdiction, is one of the investment platforms you can count on. Over the years, the growth of the offshore business has been continuously increasing in the region, and thus proceeding ahead is a profitable move.
The Procedure of E-commerce Company Formation in Singapore
Regarding forming an offshore business, Singapore is a fantastic location. The offshore company formation in Singapore has many benefits. The procedures below should be followed if you intend to start an offshore e-commerce firm.
1. Finalize the Structure
The first step is to set up an International Business Company, one of the most common business structures widely chosen during offshore investments. Proceeding with an IBC helps a business investor grab high tax-exemption benefits, provided they are not engaged in any local activities. To know more about the incorporation procedure, here’s a guide on International Business Company (IBC) that will give you complete details on the same.
2. Avail the Web Hosting Service
The next step is to obtain an offshore web hosting server, which enables you to do business remotely. You may further secure your company organization by maintaining a remote IP address that isn't local to your home. It also becomes advantageous from a tax perspective.
3. Open a Merchant Account
The next step is maintaining an offshore merchant account away from your primary address. The main justification is that commercial transactions shouldn't pass through the local server infrastructure. Finally, you will start a worldwide firm; thus, you need a global payment solution to conduct commercial transactions.
4. Distribution of Goods
In the final stage, you can deal with the distribution of goods and services. The distribution of information becomes more comfortable as it is located online and can be carried out efficiently.
You have now witnessed the setup process for an offshore e-commerce firm in Singapore. It is now strongly advised to move forward under the direction of a knowledgeable professional familiar with the relevant business procedures.
Not only can hiring an expert save time, but it also expedites the process. Here is a tutorial on the four core reasons to hire an offshore business consultant to make it easier for you to comprehend the advantages.
One of the leading business consultants in Dubai, Business Setup Worldwide, works with business owners and investors and assists them in establishing their offshore business units in well-known jurisdictions. Our business professionals are knowledgeable about Singapore's offshore company establishment procedure and can provide you with options specifically suited to your needs.
Please feel free to speak with one of our business experts if you plan to launch an offshore e-commerce operation in Singapore. Contact us right away; we'd be happy to help!