Legal Requirements for Starting an Online Store

To start an online store, the key legal requirements include registering your business entity, complying with consumer protection laws, and ensuring data privacy and secure transactions.

Specifically:

• Business Registration: You must register your e-commerce company with the relevant business authority (such as the Trade Register or equivalent). This is the same process as for traditional businesses and is mandatory before commencing operations.

• Licensing: Generally, no special licence is required to sell online unless you operate an e-commerce platform classified as an Internet Content Provider. Individual online sellers do not need a licence.

• Consumer Protection Laws: You must comply with laws such as the Sale of Goods Act, which mandates that products sold must be of satisfactory quality, accurately described, and buyers have rights to reject faulty goods. The Misrepresentation Act also applies to ensure truthful advertising and product claims.

• Electronic Transactions: Your online store must comply with electronic contract regulations, including displaying valid company contact details (address, phone, email) on the website.

• Data Protection: Protecting customers’ personal data is mandatory under data protection laws. Secure payment services and merchant accounts are recommended to safeguard financial information.

• Tax Registration: If your annual turnover exceeds a certain threshold (e.g., SGD 1 million), you must register for Goods and Services Tax (GST) and comply with tax filing requirements.

• Additional Compliance: Depending on your products, you may need to adhere to regulations on product labeling, packaging, trademarks, and storage.

In summary, starting an online store requires business registration, adherence to consumer and electronic transaction laws, data protection measures, and tax compliance once revenue thresholds are met. No special licence is generally needed for individual sellers, but legal obligations around product quality, truthful advertising, and customer data security must be met. Displaying clear company contact information on your website is also required.