If you plan to start an e-commerce business, what type of company should you reg
2024-04-20
193 CommentsMany entrepreneurs say they want to start an e-commerce business, but they are unsure about what type of company to register. Let's take a look together today.
When starting an e-commerce business, the registration of a company is determined based on the industry category. Common categories include trade, technology, industry, food, and so on.
Firstly, it is recommended to register an e-commerce company. Secondly, choosing a trade or technology and internet type company is also an option. To differentiate, you can select your industry based on your main products and then proceed with the registration.
PS: The business scope of the company must meet the standards for e-commerce.
What types of companies do e-commerce companies generally register?
1. For domestic market operations, there are not many restrictions. Most can be listed on e-commerce platforms such as Taobao, Pinduoduo, and JD.com. The business scope should be primarily based on the products you operate. For foreign market operations, there are geographical restrictions. We generally focus on selling goods, so we usually choose to register as a trade or e-commerce type.
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2. Reference for the business scope of e-commerce companies: import and export of goods; import and export of technology; import and export agency; wholesale of hardware products; retail of daily necessities; retail of cosmetics; sale of special labor protection supplies; internet sales (excluding goods that require permission for sale); sale of plastic products; sale of packaging materials and products; retail of automotive parts; retail of stationery; sale of communication equipment; retail of electronic components; sale of electronic products; sale of office supplies; sale of electronic components and mechanical and electrical component equipment; sale of power electronic components; sale of rubber products; operation of wires and cables; sale of coatings (excluding dangerous chemicals); sale of special chemical products (excluding dangerous chemicals); sale of labor protection supplies; sale of fire-fighting equipment; sale of building materials and decorative materials, etc.
E-commerce company registration process:
1. Name verification
Prepare a list of alternative names for your e-commerce company (preferably more than 5), with the name structure: region + name + industry characteristics + company type, such as Chengdu XX E-commerce Network Co., Ltd., Chengdu XX E-commerce Limited Liability Company, Chengdu XX Trade Co., Ltd., etc. Then, take the necessary materials for the name verification process and submit the name verification application to the Administration for Industry and Commerce. After passing the name verification, you will receive the "Pre-approval Notice of Enterprise Name".2. Submitting Business Documents
To register an e-commerce company, a complete set of registration materials must be prepared and submitted to the business department for review. If the review is passed, the business department will issue the entrepreneur a "Notice of Approval for Establishment Registration of Enterprise."
3. Obtaining the Business License
After receiving the aforementioned notice, the entrepreneur can go to the business hall to pick up the original and copy of the e-commerce company's business license at the pre-agreed time (usually within 3 working days for review).
4. Seal Carving
After obtaining the business license, the entrepreneur must also go to the seal carving point designated by the public security department in a timely manner for record keeping and seal carving. The seals required for an e-commerce company include: the company seal, financial seal, invoice seal, contract seal, and legal representative seal.
5. Bank Account Opening
The basic account is the account used by the e-commerce company for fund transactions during its future operations. Therefore, after the above operations are completed, it is necessary to go to the bank in the jurisdictional area to open a basic account in a timely manner.
6. Tax Registration
After the establishment of the e-commerce company, it is necessary to file tax returns according to regulations. Therefore, the entrepreneur must also go to the competent tax authorities in a timely manner to determine the type of tax and taxpayer status. At this point, the registration of the e-commerce company is basically completed.Brand and qualifications?
1. E-commerce companies should have their own brand, so it is also necessary to apply for a trademark;
2. The e-commerce website developed by oneself needs to apply for software copyright;
3. Since the website involves payment and transactions, it is necessary to handle the ICP business license.
Only with the relevant qualifications can the business be operated normally. Otherwise, it is illegal to operate. Once it is found, there will not only be high fines, but serious cases may also revoke the business license.
Remember to declare taxes on time!
In general, after registering a company and obtaining a business license to start operations, accounting and tax reporting should start from the second month. However, since there is generally no business in the early stage of a newly opened company, a newly registered company can apply for zero reporting in the early stage.
But if you don't declare taxes for a long time, it will lead to a decrease in the company's tax credit rating, restrict the company's normal business in the later stage, not allow the company to take out loans, and even impose fines, and be included in the tax black list.
What are the consequences of long-term zero reporting?If a company decides not to operate after registration for various reasons, it can consider going through the deregistration process. Alternatively, it can declare its taxes on time and correctly. If one is not familiar with the process, it is advisable to seek assistance from a financial and tax consulting service company.