How to Register eCommerce Business in India

register ecommerce business in india

Looking to register eCommerce business in India? Registering an eCommerce business is extremely crucial to operate as per legal guidelines.

Also, if you are looking to open a bank account or get an online payment gateway for your eCommerce business you need legal registration as per laws.

If you are looking to register an eCommerce business in India, it is important that you do so legally. The registration procedure can be challenging and confusing for people who have never owned businesses before.

Overview

If you are planning to start your own online business in India, then it is important that you understand the registration process for starting a new company. This article will cover the steps and requirements needed to register an eCommerce Business in India.

There are many reasons why it is a good idea to register an eCommerce business in India.

  • Firstly, the Indian market for eCommerce is growing rapidly.
  • Secondly, the government of India is supportive of eCommerce and has made it easier to do business in India.
  • Thirdly, there are many potential customers in India who are interested in buying products and services online.
  • Finally, there are many excellent web-based tools and resources available to help you start and grow your eCommerce business in India.

Steps to register eCommerce business in India

There are 5 major steps to register eCommerce business in India or I will not be wrong if I say any business registration in India needs to go by this route.

1) Create a Business Entity

A business entity is an organization that provides a product or service. In India, a business has to register its name with the Registrar of Companies before it starts doing any business activities. There are two main types of business entities:

  • Unincorporated association
  • Incorporated company

There are many different ways of registering a new business in India with both government and private entities available for registration. A company can be registered by the Indian Company Law at the Ministry of Corporate Affairs in Delhi, by taking an online application on the department’s website.

Also read: Scope of eCommerce Business in India

2) Research your target market

When starting an eCommerce business, it is important to do research on your target market. This means understanding who your customers are, what they want, and how to reach them. You can gather this information by conducting surveys, focus groups, interviews, and using secondary data sources.

Once you have this information, you can create a marketing strategy that targets your customers and appeals to their needs. You can also use this information to determine the products and services you offer on your website.

3) Choose a name – make sure it is not too similar to any brand

When choosing a name for your business, it is important to make sure that it is not too similar to an existing brand in the same field. This can create confusion among customers and result in lost business. You can check to see if a name is already taken by using the Indian Company Registry Database or by searching the internet.

Once you have chosen a name, make sure to register it with the Registrar of Companies. This will protect your brand and ensure that no one else can use it.

4) Register at TradeMark India for Trademark Registration

If you plan on starting a business in India, one of the most important things you need to do is register a trademark. A trademark is a symbol, name, or design that is used to identify a particular product or service.

It can be registered with the government agency responsible for trademarks in India.

Learn more: How to Get Registered Trademark in India

5) Get Your GST Number

The Goods and Services Tax (GST) is a tax that is levied on the sale of goods and services in India. It was introduced in July 2017 as a replacement for the old Value-Added Tax (VAT) system. Businesses in India must register for GST if they meet certain criteria, such as having an annual turnover of Rs. 20 lakhs or more.

Registration for GST is done through the GST Network (GSTN), which is a government portal that provides online services related to GST. The GSTN offers a number of features, such as registration, filing returns, viewing invoices, and making payments.

You can apply for GST registration on govt. portal here

All businesses in India must file returns and make payments on a monthly basis.

register ecommerce business in india

Why register as a sole proprietorship firm?

The easiest way to do this is to register an e-commerce business in India as a Sole Proprietorship firm.

There are many benefits of a Sole Proprietorship firm in India. Some of these benefits are as follows:

  • Easy to Form: A Sole Proprietorship is the easiest business form to set up in India. There is no need for special permissions or licenses from any government agency. All that is required is that you file a simple declaration form with the local Registrar of Companies.
  • Minimal Registration Costs: The registration costs for a Sole Proprietorship are also very low. You only need to pay a nominal fee to file the declaration form with the Registrar of Companies.
  • Single Owner: A Sole Proprietorship is owned by a single individual, which makes it easy to operate.

What is a sole proprietorship firm?

For startups, sole-proprietorship is the easiest way to form a firm to register eCommerce business in India. Sole Proprietorship has lower legal compliances and is very easy to tackle in case you are just getting started.

A proprietorship business and its proprietor (i.e. you) are a single entity in all legal matters. Indian law doesn’t treat the two differently as is the case with a company registered as a Private Ltd or a Public Ltd or even a Partnership firm.

That means you are taxed at individual rates instead of corporate rates. It fairly reduces your tax formalities as you have to file only one personal income tax return. So, now you understand that you and your brand are one soul. You can even run it from your home, for which no special registration is required.

To register an eCommerce business in India as a sole proprietorship firm you need to set up a physical commercial store. Fill in some formalities with your local municipal corporation office and will need to apply under the Shops and Establishment Act.

Now, it’s time to dive straight into the details of registering an eCommerce business in India, the cost of setting up your online brand, taxation of a sole proprietorship, and the business licenses required.

Register eCommerce Business in India as Sole Proprietorship

You can register your eCommerce business under sole proprietorship at your nearest local municipal corporation office. You need to submit the Shops and Establishment Form to complete your registration.

Along with it, you are needed to submit an undertaking. The fees for registration may vary depending on the state and the city’s municipal corporation area.

Note: While registering, you will be needed to submit an address proof for the Shops and Establishment registration. You may submit an address proof for your home or any other place.

Sole Proprietorship firm setup cost

Setting up a sole-proprietorship firm does not require a huge investment. All you need is a current account in the name of your business, at a bank of your choice.

That is it! All you need to do is, at the local bank branch of your choice, ask for a form for proprietorship firms and get a bank account ready for all business-related transactions.

When opening an account you also need to submit an address proof such as a telephone or electricity bill or a rent agreement if you’re going to use a rented space.

Conclusion

India is rapidly emerging as the next great global tech market. Everyone is looking to either register an eCommerce business in India or expand their existing one here, but to do so legally and without spending thousands of rupees in lawyer fees, you need to register your eCommerce business with the authorities.

This will not only protect you against various legal hassles that come up, but it will also help you create a robust business platform for the future.

It should be noted that it is always recommended to register your eCommerce business in India for a number of reasons. To begin with, as an oblivious entrepreneur, you will be able to avail the benefits offered by the government which are not available in other countries.

In addition to this, while operating online, there are numerous other aspects that need to be taken into consideration such as the legal framework, taxation system, and so on.

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