Select Your Location
Buying products or services online is a convenient method of shopping without roaming in a market. Those days are gone when customers used to move to retail shops for shopping. The recent trend of online shopping has transformed shopping into the customer-oriented market from a trader-oriented market.
E-commerce is a trend in India for entrepreneurs to register their e-commerce business. Under an E-commerce business , there is trading of products or services through computer networks, such as the internet.
In India, the e-Commerce industry is witnessing tremendous growth because of the internet connection. E-commerce industries are set to record even a higher growth with the increase in internet service providers and with the 3G and 4G services at a very affordable price.
E-commerce refers to the businesses conducted over the internet. Currently, m-commerce business conducted through smartphones has become very popular.
There are two ways to start an e-commerce business, one is through a proprietary e-commerce website and another is joining an established marketplace.
This is the toughest way of starting an e-commerce business. It requires a web development team, online marketing team and payment gateway for receiving payments. It requires a high amount of investment efforts to build a successful business. Creating your own e-commerce website is a long-term initiative.
It is considered as an easy way to start an e-commerce business. To join an e-Commerce marketplace as a seller, often requires only a bank account and GST registration to make the process easy and simple. Sellers can join multiple marketplaces to sell their products.
Following are the popular e-commerce/m-commerce marketplaces:
Before starting an e-commerce business, it is required to incorporate a company or LLP to have the benefits of limited liability and it improves the functioning of the business. With the incorporation of a company or LLP Registration, it will ensure opening of a bank account in the name of a business or for obtaining a GST registration.
Marketplaces allow partnership firms and proprietorship firms to sell on their website. In the case of litigation, there will be no limited liability protection. In case promoter wants to start a proprietary e-Commerce website then it is preferred to start with a company because it can allow for equity funding which is good for successful e-commerce ventures.
GST registration is required to start a proprietary e-Commerce website and to become a seller on the e-Commerce portal. GST registration is required for selling goods in India.
After the incorporation of a private limited company or LLP, it is easy to open a bank account in the name of a business. Whereas in the case of a firm, it is required to obtain a GST registration first to open a bank account in the name of a business. It is required to open a bank account to list on e-commerce marketplace or to obtain a payment gateway for a proprietary e-Commerce website.
For processing the customer payments on the e-commerce websites, payment gateway would be required. It allows the website to accept debit card, credit cards, net banking, internet banking payments from multiple banks and credit card companies. Therefore to accept online payments, one payment gateway is sufficient. After receiving the payment from the customer, payment is sent to the bank account of the business in one or two working days. In the case of marketplaces, they will accept the payment through their payment gateway and credit the amount to a bank account of the seller.
The business licenses needed for an online portal depends on the type of products that are sold at the site. You are advised to go through registration policies of different states as it differs from state to state. It will further help you to know regarding the licenses required for starting an e-commerce business.
Read our article:
Different Valuation Approaches: Market, Income and Cost Approach
Ashish M. Shaji has done his graduation in law (BA. LLB) from CCS University. He has keen interests in doing extensive research and writing on legal subjects especially on corporate law. He is a creative thinker and has a great interest in exploring legal subjects.
The Securities and Exchange Board of India (SEBI), the capital markets regulator, has recommend...
The objective of the enactment of the Prevention of Money-laundering Act, 2002, i.e. PMLA (the...
Tax planning is a continuing effort and a management strategy for ensuring the minimization of...
On 18th May 2023, the Securities Exchange Board of India (SEBI) released a Consultation Paper o...
Infrastructure and real estate have been regarded as India's "sunshine sector" since the turn o...
On 22nd May 2023, the Central Board of Direct Taxes (CBDT) issued a new circular under secti...
Anyone can have different sources of income. With globalization and the opening up of economies...
The Reserve Bank of India (RBI) is crucial in regulating NBFC, including branch openings and cl...
In India, Non-Banking Financial Companies are subject to certain restrictions from taking publi...
It's usually a good idea to diversify the assets in your financial portfolio, especially during...
Are you human?: 9 + 7 =
Easy Payment Options Available No Spam. No Sharing. 100% Confidentiality
A partnership can be defined as an association between two or more people to share profits. The Indian government t...
10 Apr, 2020
In India, Partnership registration is not mandatory. However, there are several reasons for registering your partne...
20 Feb, 2018
Red Herring Top 100 Asia enlists outstanding entrepreneurs and promising companies. It selects the award winners from approximately 2000 privately financed companies each year in the Asia. Since 1996, Red Herring has kept tabs on these up-and-comers. Red Herring editors were among the first to recognize that companies such as Google, Facebook, Kakao, Alibaba, Twitter, Rakuten, Salesforce.com, Xiaomi and YouTube would change the way we live and work.
Researchers have found out that organization using new technologies in their accounting and tax have better productivity as compared to those using the traditional methods. Complying with the recent technological trends in the accounting industry, Enterslice was formed to focus on the emerging start up companies and bring innovation in their traditional Chartered Accountants & Legal profession services, disrupt traditional Chartered Accountants practice mechanism & Lawyers.
Stay updated with all the latest legal updates. Just enter your email address and subscribe for free!
Chat on Whatsapp
Hey I'm Suman. Let's Talk!