CompRegi Shares The Importance of Proper Business Registration for E-commerce Venture

According to Forbes Advisor,  20.1% of retail purchases are taking place online, which is expected to grow by 23% in 2027. This underscores the great need for businesses to invest in e-commerce ventures rather than brick-and-mortar shops. As more and more e-commerce are being built, the need to increase global outreach is at its peak.

Owing to this, CompRegi has thrown some insights on the importance of proper business registration so that e-commerce platforms can avail benefits of it and reach to larger customers. ComPregi is a leading consulting firm and service provider for business development.

Business registration is vital for any business as it helps e-commerce businesses to establish credibility, increase outreach, gain customer confidence and set a unique place in the market.

Business registration is going to help e-commerce to set up their entity. As the market is flourishing, there are many sellers who are alike. It might be the case where some others possess rights over the business packaging, logo or name. To own rights over the creatives, which are called as rights of intellectual property, a company must be registered. This protects the name of the company, giving it a chance to file a trademark or copyright.

Moreover, registered e-commerce businesses have legal access to benefits and opportunities, including tax rebates, grants or funding schemes that can aid growth and expansion plans. Registered entities can also achieve better partnerships, set up bank accounts and sign contracts with input suppliers and distributors.

When it comes to e-commerce platforms, knowing the business structure is important. Registration helps in establishing the proper structure for e-commerce. There are many options available, such as sole proprietorship, partnership, limited liability company (LLC), corporation, etc. Each of them has its share of disadvantages and advantages, which impact the benefits a company can avail.

CompRegi states that business registration can aid e-commerce ventures seeking investment. Registering the business enhances the professional image of the venture. It signals that the operator is committed to compliance with the law (and, in turn, regulatory standards). This, in turn, provides a sense of comfort for the investor about the adequacy of the overall management of the venture and its prospects for success. The registered venture also presents itself as higher in the trust hierarchy and, thus, a more credible and reliable investment opportunity. Hence, business registration is critically essential for enhancing the credibility of an e-commerce venture and making it more attractive for investors to offer financial support.

There has been a long way where statutory bodies have heavily penalised e-commerce platforms that weren't registered. Without GST registration, a new bill has been passed to penalise companies up to one lakh. However, on larger demand and the recommendation of the GST Council, the Central Government decided not to mandate the GST registration for small business owners. But that comes with exceptions that a small business has to fulfil. Failing which, a company can be charged for non-registration of business.

CompRegi, however, emphasises smaller businesses to register the company as it can help them financially. Banks are meant to loan businesses registered under any statutory body: tax exemptions, liability protection, easy transferability, and dual relationship. Access to funding, in order to scale business, requests can only be raised by registering a company to attract investors and give confidence.

Thus, Compregi helps businesses by consulting them on the importance of business registration. When, as an entrepreneur, you decide to venture into e-commerce, the first thing to do is to get the business registered. Take the first step to becoming credible, earning investor confidence, and setting your business up for success by checking out the resources around you to register your company in simple steps.

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