An electronic services which are based on Internet/Intranet business transactions are available to e-market places and get the broader business concepts. Component-based e-commerce technology is a recent trend towards resolving the e-commerce chanange at both system and ap-plication levels. The basic capabilities of component based systems should include the plug and play features at various granularities, interoper-ability across networks and mobility in various networking environments. E-business application developers are attempting to more towards web-service as a mechanism for developing component-based web-applications. Traditional process and development models are inadequately architectured to meet the rapidly evolving needs for the future of scalable web services. In this thesis, we focus specifically on the issues of e-business system architecture based on web service for establishing e-business system. We specifies and identifies design pattern for applying e-business domain in the context of multiple entities. We investigate prototype and frameworks to develope components for e-business application based suggested process. We present a worked example to demonstrate the behavior of Customer Authentication System(CAS) development with component and recommend process. Final]Y, we indicate and view on future directions in component-based development in the context of electronic business.