Just Wondering: Does Having And Using A Website For Business Or For Generating Money Needs To Have A License?

[questj]

Just wondering:

Is it really true that any kind of business online doesn't need to have licenses or permits?

If you have a small store or shop, you need to secure licenses or permits to operate, right?
If you have a barber shop, you also need to secure licences or permits to operater, right also?
And many other things?

Does having and using my website to promote my product, sell my product, sell my services also considered as a business, which means, I need to secure certain licences or permits in order to operate my business?

I just keep my products at home, and whenever someone contacted me through my website, then we just closed the deal for the sale.

My question is:

Why is it that Stores and Shops on the 'streets' needs to have licences or permits;
While...
Stores and Shops 'Online' doesn't need any kind of licences or permits?
.

[Buenchico]

>>>If you have a small store or shop, you need to secure licenses or permits to operate, right?

As long as the property has class 'A1' planning permission, no other form of licence or permit is normally required. (People serving food that's not pre-packed might require food hygiene certificates and licenses are required for serving alcohol or late-night food but such restrictions don't apply to the vast majority of shops).

>>>If you have a barber shop, you also need to secure licences or permits to operater, right also?

Once again, 'A1' planning permission is required but 'hairdresser' and 'barber' aren't 'protected titles'; anyone can can use them. So a person with absolutely no training whatsoever is free to set up a barber's shop, without any form of licence.

>>>Stores and Shops 'Online' doesn't need any kind of licences or permits?

If you're working from home you might require planning permission, depending upon the extent to which your home has become 'business premises' (so that's not really different to a shop). You also have to follow certain rules (such as ensuring that your website includes a valid postal address, not just an email address).

You are further bound by additional laws which don't apply to High Street shops. For example, if someone buys an item from a High Street shop and then later simply changes their mind about the purchase (which is neither faulty nor mis-described) they have no right to a refund if they try to return it. Whereas if someone buys the same item from an online retailer and then changes their mind (within 7 working days) the seller MUST provide a refund.

So there's very little difference between High Street retailers and onlnie ones except that, in some circumstances, online retailers are subject to ADDITIONAL rules, NOT FEWER ones.

[Peter Pedant]

Hi BC
nice to see BC and a bit of sense !
my my you get up early ! - I am still on my first coffee .

questj - your status would be as 'sole trader' and I think you just go out there and trade !

You do need to be aware that as such a sole trader that if you are sued, and 'they' win - then the whole of your assets are at risk inc the house
(and you know if they are Arab - then it is your wife as well....)
( and if the litigant is Michael Jackson then the kids get thrown in too)

sorry the last two were jikes....

[questj]

So what is the real direct answer? Do I need to get license or permits? I have a website, I am selling some products and services, but I don't have shop or anything, I just get the items from somewhere whenever there is an order. I just keep the items for 1-2 days, very small items, then deliver it to the buyer next day.

[bednobs]

1) are you in the UK?
2) what kind of products?

[Buenchico]

If you're in the UK (and the items you're selling aren't subject to specific legislation, such as prescription spectacles) you're free to set up a business website without the need for any form of licence or permit.

You simply need to remember that
(a) you must include a valid postal address for your business ;
(b) you must comply with the Distance Selling Regulations ;
http://www.oft.gov.uk/shared_oft/business_leaflets/general/oft913.pdf
(c) you must comply with the Sale of Goods Act ;
(d) you must register your business with HMRC ;
(e) you must send tax returns to HMRC and pay tax on your income.

https://www.gov.uk/online-and-distance-selling-for-businesses

[CokeTulip]

Buenchico....as a matter of interest - does an online service provider have to give an address too as I notice some dont?

[Buenchico]

CokeTulip:
Here's what the law says:
http://www.legislation.gov.uk/uksi/2002/2013/regulation/6/made
You'll see that it refers to 'an information society service' (rather than to the sale of goods or to the provision of services) but the same legislation elsewhere defines that as being "any service normally provided for remuneration, at a distance, by means of electronic equipment . . . "
As I read that, it applies BOTH to the sale of goods and to the provision of services.

See also here (which seems to confirm my opinion)
http://www.tradingstandards.gov.uk/cgi-bin/shropshire/bus1item.cgi?file=*BADV065-1001.txt

[questj]

Seems I am in the wrong forum. Im in the Philippines.

1. Products - Electronic gadgets and others
2. Services - I fixed computers (home service)
3. I am accepting advertisements on my Website from third party clients, they pay me a fee for every clicks and so on.

Do I need to acquire any type of licenses or permits?

With regards to postal address, can I just put my apartment number details (this is a plain home/house).
.

[Buenchico]

The 'postal address' rule is derived from European Union legislation. It might not apply where you are!

However it seems that you DO need a "mayor's permit or municipal license". See here:
http://www.dti.gov.ph/dti/?p=353

[questj]

@Buenchico

Thanks for your reply.

Note: I also sell articles, ebooks, customized softwares, etc., and many others to overseas clients.

Does that mean, even though my online business is worldwide/international (because Websites reached int'l. audience), I only need to acquire/secure license and permits from where I reside? In my case, here in the Philippines, right?

[Buenchico]

>>>Does that mean . . . I only need to acquire/secure license and permits from where I reside?

Yes.