HOW TO START YOUR OWN ONLINE BUSINESS

Last Updated On: March 25, 2019, 11:58 a.m.
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With the development of technology & expansion of internet community, world is witnessing worldwide growth in trade/commerce through internet. This commerce through internet is known as E-commerce. In some last years, this sector has shown tremendous growth. India is no exception to it as the E-commerce operators/online sellers are increasing day by day with the major players such as Amazon, Flipkart etc. 

This article discusses how one can start his/her own online business.

Before starting a business, the first thing that should be decided what he/she is going to sell i.e. which product or what kind of services. As we know, trend of online businesses is increasing day by day so one must select product or service having some distinguishing characteristics making them different from already existing players in the market. 

One cannot start his/her business online just like that; he/she needs to follow some rules or regulations regarding its registration of business, operation of business etc. These rules & regulations vary from product to product.

First of all, it should be decided what kind of business venture one wants i.e. a company, LLP, partnership firm etc. It is advisable to start with company or LLP as they give benefit of limited liability. Other benefits include ease of doing business, fast opening of bank account, fast tax registrations etc. 

If one decides to start his/her venture as a company, then all requirements mentioned in Companies Act, 2013 must be fulfilled like MOA, AOA, approval of name, DSCs etc. Obligations of taking PAN, TAN, GST Registration, filing returns etc. provided in other laws like Income tax law, GST law etc. must also be fulfilled. Also, the advantage company over other forms of business is that it allows equity funding which helps in expansion in future.

Another essential requirement of online business is that there must be bank account in the name of business as it will facilitate the receipt of payment from customers using debit cards, credit cards, netbanking etc. i.e. making online transfer of payment.

Only opening of bank account is not sufficient but a payment gateway is also required for the processing of payments from customers. They receive payments from customers & transfers the amounts directly in bank accounts of businesses.

However, if someone is selling through an online marketplace like amazon, Flipkart etc. no payment gateway is required on behalf of seller.

Other mandatory legal documentations include the formation of contract, terms & conditions, privacy policy etc. describing the aspects of operations, return policy, payment modes, what all products are being sold, dispute resolution process etc.

But if one is selling through any marketplace, then important document is “Seller’s Agreement.”

Online businesses must fulfill their tax obligations for the supply of goods or services or both. As per GST Law, TCS should be deducted by e-commerce operator. Also, persons selling through an e-commerce operator have to register themselves as a normal taxable person & file returns as well.

Now, IPR comes into play for protecting any symbol, mark or logo for making it distinguishable from other market players.

Major portion of online business is shared by Amazon & Flipkart. They have provided a proper procedure through which a seller can sell his goods on these e-commerce platforms.

AMAZON:

Following steps must be followed by a seller who wants sell his goods through Amazon:

- Business Entity name i.e. Register a LLP or Private Limited Company for doing business. 

- Open Bank account in the name of business entity to receive payments.

- Obtain necessary registration like GST registration, PAN, TAN etc.

- Visit Amazon India Seller Signup & Click on the register now & provide Business Entity name, Address, Phone number & Bank account details (Account holder name, IFSC code, Bank Account number & Account type).

- Complete the Amazon India registration process & start selling on Amazon.

FLIPKART:

Following steps must be followed by a seller who wants to sell goods through Flipkart:

- Decide, review & register a suitable business entity.

- Tax registration – obtain PAN, TAN, GSTIN registration in the name of business entity.

- Open a bank account in the name of business entity.

- Visit Flipkart seller homepage & provide name, email address, phone number, business address, category of product for selling, business registration document & tax registration documents.

- Submit information and documents with Flipkart to become a Flipkart seller.

- Once you are registered with Flipkart, you can sell your products through Flipkart.

Legal Suvidha can assist you in getting different Business Registrations to start the Online Business including Company Registration, GST Registration, TAN Registration, PAN Application , Trademark Registration etc at the best prices. You can contact us at 9599937963 or 8130645164 or you can mail us at support@legalsuvidha.com.

 

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