{"id":20055,"date":"2019-06-19T16:46:46","date_gmt":"2019-06-19T11:16:46","guid":{"rendered":"https:\/\/enterslice.com\/learning\/?p=20055"},"modified":"2019-06-20T18:43:36","modified_gmt":"2019-06-20T13:13:36","slug":"legal-compliance-for-e-commerce-business-in-india","status":"publish","type":"post","link":"https:\/\/enterslice.com\/learning\/legal-compliance-for-e-commerce-business-in-india\/","title":{"rendered":"Legal Compliance for E-Commerce Business in India: All You Need to Know"},"content":{"rendered":"<p class=\"has-drop-cap\">E-Commerce refers to electronic commerce. It is the most important source of business globally. E-Commerce is playing a significant role in the paperless exchange of business information using Electronic Data Interchange, Electronic mail, Fund Transfer electronically and other new technologies based on the network. <a href=\"https:\/\/enterslice.com\/learning\/licenses-mandatory-launch-e-commerce\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\"E-commerce business in India (opens in a new tab)\">E-commerce business in India<\/a> is playing a vital role in covering a wide range of businesses. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>What is E-Commerce Business?<\/strong><\/h2>\n\n\n\n<p>It refers to the electronic exchange of goods and services with no barrier of time and distance. <a rel=\"noreferrer noopener\" aria-label=\"E-Commerce (opens in a new tab)\" href=\"https:\/\/enterslice.com\/learning\/e-commerce-legal-issues\/\" target=\"_blank\">E-Commerce<\/a> involves both product and services. It provides countless opportunities to the startups and existing entrepreneurs to open a new platform of sales <a class=\"glossaryLink\"  aria-describedby=\"tt\"  data-cmtooltip=\"&lt;div class=glossaryItemTitle&gt;Market&lt;\/div&gt;&lt;div class=glossaryItemBody&gt;A market is a structured environment, either physical or virtual, where buyers and sellers convene to trade goods and services. This trading hub operates based on the principles of supply and(...)&lt;\/div&gt;\"  href=\"https:\/\/enterslice.com\/learning\/terms\/market\/\"  data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]'>market<\/a> electronically.<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter is-resized\"><img decoding=\"async\" loading=\"lazy\" src=\"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2019\/06\/E-Commerce-Business.png\" alt=\"E-Commerce Business\" class=\"wp-image-20065\" width=\"411\" height=\"387\" srcset=\"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2019\/06\/E-Commerce-Business.png 475w, https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2019\/06\/E-Commerce-Business-300x282.png 300w\" sizes=\"(max-width: 411px) 100vw, 411px\"\/><\/figure><\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Key Factors of E-Commerce Business in India<\/strong><\/h2>\n\n\n\n<p>There are certain key factors of E-Commerce Business &ndash;<\/p>\n\n\n\n<ol><li>Product\nor service.<\/li><li>Website\nto sell the product.<\/li><li>A\nroute for the customers to reach the website of the organization\nelectronically.<\/li><li>Way\nto accept order and Money.<\/li><li>Return\nPolicy as after- sales service.<\/li><li>Shipping\nfacility Free or chargeable depending on the organization policies.<\/li><li>Warranty\nfacility in case of damage of products in the way.<\/li><\/ol>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Models of E-Commerce Business <\/strong><\/h2>\n\n\n\n<p>E-commerce has four models which represent a range of various transactions which varies from participant to participant &ndash; <\/p>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" loading=\"lazy\" width=\"580\" height=\"517\" src=\"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2019\/06\/image-75.png\" alt=\"E-Commerce Business\" class=\"wp-image-20056\" srcset=\"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2019\/06\/image-75.png 580w, https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2019\/06\/image-75-300x267.png 300w\" sizes=\"(max-width: 580px) 100vw, 580px\"\/><\/figure>\n\n\n\n<ul><li><strong>B2B Commerce<\/strong><\/li><\/ul>\n\n\n\n<p>B2B requires two or more business entities. The application is utilized to facilitate Supplier &amp; Buyer centric market electronically. The parties of B2B are Business Partner. It is the most extensively developing E-commerce trend nowadays.<\/p>\n\n\n\n<ul><li><strong>B2C Commerce<\/strong><\/li><\/ul>\n\n\n\n<p>B2C commerce has gained popularity to a simplified way to buy products. It refers to buying and selling of products i.e. goods or services on the website. In B2C Commerce goods can be easily transformed into the digital format. <\/p>\n\n\n\n<ul><li><strong>C2C Commerce<\/strong><\/li><\/ul>\n\n\n\n<p>It refers to online dealing of goods and services between people where two people deal online on the <a class=\"glossaryLink\"  aria-describedby=\"tt\"  data-cmtooltip=\"&lt;div class=glossaryItemTitle&gt;Basis&lt;\/div&gt;&lt;div class=glossaryItemBody&gt;In finance, the &amp;quot;basis&amp;quot; is a term with several applications, including representing the difference between the spot price and the future contract price of an asset, which is vital in investment(...)&lt;\/div&gt;\"  href=\"https:\/\/enterslice.com\/learning\/terms\/basis\/\"  data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]'>basis<\/a> of their requirement and needs and are becoming more popular these days. It promotes consumer dealings with other consumers on the website. <\/p>\n\n\n\n<ul><li><strong>C2B Commerce<\/strong><\/li><\/ul>\n\n\n\n<p>It enables a consumer to interact with the company for the price of product and services offered by a company. This provides consumers with market strategies.<\/p>\n\n\n\n<p><strong>Also Read:<\/strong> <a rel=\"noreferrer noopener\" aria-label=\"E-commerce Business Model in India (opens in a new tab)\" href=\"https:\/\/enterslice.com\/learning\/e-commerce-business-model-india\/\" target=\"_blank\">E-commerce Business Model in India<\/a><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Legal Compliances for E-Commerce Business in India<\/strong><\/h2>\n\n\n\n<p>In E-Commerce, the business person expects matching of the requirements of the consumers in the best possible way. It reduces the time and flexible for both the merchant and consumers <\/p>\n\n\n\n<p><\/p><div class=\"shadow1\"><strong>E-commerce is a platform where the business person and customers interact online through website<\/strong><\/div>\n\n\n\n<p>To <a href=\"https:\/\/enterslice.com\/learning\/licenses-mandatory-launch-e-commerce\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\"start an E-Commerce business (opens in a new tab)\">start an E-Commerce business<\/a>, it is required to fulfill the following compliances &ndash; <\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Company Incorporation or LLP<\/strong> <\/h3>\n\n\n\n<p>It is good to have a <a href=\"https:\/\/enterslice.com\/company-registration\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\"company (opens in a new tab)\">company<\/a> or LLP before starting the e-commerce business for the ease of doing business and for transparency of records.<\/p>\n\n\n\n<p>In case of partnership and proprietorship business, it is difficult to have limited liability protection in case of litigation, so it is safer to incorporate a company or LLP for smooth functioning.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Payment Gateway and Opening of Bank Account<\/strong><\/h3>\n\n\n\n<p>To process the customer payments in the <a rel=\"noreferrer noopener\" aria-label=\"E-commerce website business (opens in a new tab)\" href=\"https:\/\/enterslice.com\/learning\/registration-licenses-required-starting-e-commerce-business\/\" target=\"_blank\">E-commerce website business<\/a> a payment gateway is necessary. It provides a route to accept the debit cards and credit cards and net banking payments from different banks and credit cards issued by the companies. For every e-commerce business, it is necessary to have a payment gateway to accept online payments. By <a href=\"https:\/\/enterslice.com\/learning\/online-payment-gateway-india\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\"payment gateway (opens in a new tab)\">payment gateway<\/a>, the amount receive from the customers is sent\/ transferred to the bank account of the business.<\/p>\n\n\n\n<p>It is convenient in case of Company or LLP to open a bank account in the name of Company or LLP in any bank. To receive the payment from the payment gateway it is necessary to open a bank account in the name of the business i.e. name of the company or name of the LLP. In Partnership or proprietorship business it is important to have GST registration before opening a Bank account.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>GST Registration<\/strong><\/h3>\n\n\n\n<p>To start an E-commerce business <a rel=\"noreferrer noopener\" aria-label=\"GST registration (opens in a new tab)\" href=\"https:\/\/enterslice.com\/gst-registration\" target=\"_blank\">GST registration<\/a> is mandatory. A business having a turnover of more than Rs.40 lakh annually and doing business interstate outward supplies of goods, irrespective of turnover is required to have a GST registration. Through online GST portal, GST registration can be done by attaching all the required documents in the form.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Documentation<\/strong><\/h3>\n\n\n\n<p>It is necessary to protect the business of the business for that every businessperson is required to do legal documentation for future perspective. The agreements and the legal documents are provided by the market place where the seller and customer have to stand by the agreement and read the term and conditions before signing.<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter is-resized\"><img decoding=\"async\" loading=\"lazy\" src=\"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2019\/06\/E-Commerce-Business-in-India.jpg\" alt=\"E-commerce Business in India\" class=\"wp-image-20072\" width=\"427\" height=\"318\" srcset=\"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2019\/06\/E-Commerce-Business-in-India.jpg 626w, https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2019\/06\/E-Commerce-Business-in-India-300x224.jpg 300w\" sizes=\"(max-width: 427px) 100vw, 427px\"\/><\/figure><\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Process of getting Legal Protection in E-commerce Business in India<\/strong><\/h2>\n\n\n\n<p>E-commerce starts with launching the online platform through a mode of website and includes:<\/p>\n\n\n\n<ol><li>Launching the online store (website), page layout<\/li><li>Protection of data<\/li><li>Models of E-commerce and the term of service<\/li><li>Legal documentation and advisory which affects the projects<\/li><li>Marketing strategy and study of market requirements<\/li><li>Deciding the virtual payment platforms \/gateway<\/li><li>Market Campaign<\/li><li>Legal agreements like manufacturing and selling agreement.<\/li><li>Customer base and requirement<\/li><li>Process and legal actions in case of breach of contract<\/li><li>Analyzing the market behavior of competitors<\/li><li>Proceedings in case of <a href=\"https:\/\/en.wikipedia.org\/wiki\/Settlement_(litigation)\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\"litigation (opens in a new tab)\">litigation<\/a><\/li><li>Defense of unjustified allegation and unauthorized warnings<\/li><li>Reason of interim injunction, if any and the protective measure taken against the interim injunctions <\/li><li>Examination of claims i.e. omission, damage etc<\/li><li>Representation in case of proceedings<\/li><\/ol>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Conclusion<\/strong><\/h2>\n\n\n\n<p>For any type of business Electronic commerce involves the transfer of information across the internet globally. It provides a platform where two business persons, consumers interact directly and fix the deal without a physical meet. Electronic mail, Mobile commerce and electronic data interchangeable are playing a vital role in the E-Commerce business. <\/p>\n\n\n\n<p>Businesses move sections of their operations onto the internet which as a result blurred conventional commerce. As E-commerce is a business strategy where technologies are used to achieve the goal of business and for-profit maximization by facilitating the delivery of goods and services.<\/p>\n\n\n\n<p><strong>Also Read:<\/strong> <a rel=\"noreferrer noopener\" aria-label=\"How to Start e-Commerce Business in India (opens in a new tab)\" href=\"https:\/\/enterslice.com\/learning\/licenses-mandatory-launch-e-commerce\/\" target=\"_blank\">How to Start e-Commerce Business in India<\/a><\/p>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>E-Commerce refers to electronic commerce. It is the most important source of business globally. E-Commerce is playing a significant role in the paperless exchange of business information using Electronic Data Interchange, Electronic mail, Fund Transfer electronically and other new technologies based on the network. E-commerce business in India is playing a vital role in covering [&hellip;]<\/p>\n","protected":false},"author":4,"featured_media":20061,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[209],"tags":[1106],"acf":{"service_id":"1"},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v14.6.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>E-Commerce Business in India: Legal Compliances<\/title>\n<meta name=\"description\" content=\"E-Commerce business in India is playing a vital role and it provides a platform where two business persons interact directly.\" \/>\n<meta name=\"robots\" content=\"index, follow\" \/>\n<meta name=\"googlebot\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<meta name=\"bingbot\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/enterslice.com\/learning\/legal-compliance-for-e-commerce-business-in-india\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"E-Commerce Business in India: Legal Compliances\" \/>\n<meta property=\"og:description\" content=\"E-Commerce business in India is playing a vital role and it provides a platform where two business persons interact directly.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/enterslice.com\/learning\/legal-compliance-for-e-commerce-business-in-india\/\" \/>\n<meta property=\"og:site_name\" content=\"Enterslice\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/enterslice\" \/>\n<meta property=\"article:author\" content=\"enterslice\" \/>\n<meta property=\"article:published_time\" content=\"2019-06-19T11:16:46+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2019-06-20T13:13:36+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2019\/06\/Legal-Compliance-for-E-Commerce-Business-in-India.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"700\" \/>\n<meta name=\"twitter:card\" content=\"summary\" \/>\n<meta name=\"twitter:creator\" content=\"@enterslice\" \/>\n<meta name=\"twitter:site\" content=\"@enterslice\" \/>\n<!-- \/ Yoast SEO plugin. -->","authorName":"Narendra Kumar","authorImageUrl":"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2019\/04\/nk-1.jpg","authorDescription":"Experienced Finance and Legal Professional with 12+ Years of Experience in Legal, Finance, Fintech, Blockchain, and Revenue Management.","postViews":499,"readingTime":4,"nextPost":{"id":20082,"slug":"inter-corporate-loans-and-investments"},"prevPost":{"id":19971,"slug":"compulsory-withdrawal-gst-composition-levy"},"featuredMediaUrl":"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2019\/06\/Legal-Compliance-for-E-Commerce-Business-in-India.jpg","postTerms":"Business Registrations","_links":{"self":[{"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/posts\/20055"}],"collection":[{"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/comments?post=20055"}],"version-history":[{"count":0,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/posts\/20055\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/media\/20061"}],"wp:attachment":[{"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/media?parent=20055"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/categories?post=20055"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/tags?post=20055"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}