Buying goods or services online has been very popular in recent years because it is an easy way to buy in one click rather than roaming around the store. Gone are the days when customers had to go to department stores and were at the hands of the sales representative selling the items. The recent trend in online retail has really changed the way companies shop.
We see advertisements like the one above almost every day in newspapers, television, and other media about online websites that have emerged as industry leaders and have a significant impact on the retail trade sector. For new entrepreneurs who want to start their businesses online rather than in a store, eCommerce is gaining a lot of attention.
What is eCommerce?
The process of purchasing or selling products and services over the internet is known as eCommerce. E trading, also known as electronic commerce or online commerce, is the purchase and sale of goods and services over the internet, as well as the financial and data transfers used to complete these purchases. Ecommerce is often used to refer to the online selling of physical goods, but it may also refer to any kind of commercial activity that is made possible by the internet.
Is it necessary for online sellers to register their business?
Selling goods online is common nowadays. Basically when you are involved in a business, it is always better to get your business registered as a company or firm. Especially if you are involved in online selling, registration is required on a compulsory note. In this case you can register your business as a firm rather than a company. If your goal is to sell products through online marketplaces or to build your own web store, you can consider establishing a sole proprietorship when engaging in the retail industry.
E-Commerce Business Registration and License
Company or LLP Registration:
Before starting an eCommerce business you must register a company or LLP. If you want to provide a payment portal for your online shop,This is extremely important. It’s also needed if you choose to open a physical shop and hire employees.
GST Registration:
GST registration is required if you choose to sell on an e – commerce website or start your own eCommerce company.
Professional Tax:
If you have even one employee, you must pay this bill. Since each state is free to set its own rules, it’s a good idea to double-check if professional tax registration is required in your state.
Food License:
Food licenses are not compulsory for all businesses. The one who is dealing with the food products has to get the Food license from the department.
Shops and Establishment Act:
If you want to provide a payment portal for your online store, you’ll need to know about the Shops and Establishment Act. It’s also needed if you choose to open a physical store and hire staff.
Documents required to establish a Sole Proprietorship
- The proprietor’s PAN card (Permanent Account Number) and a government-issued photo ID (passport, voter card, aadhar, etc.)
- A copy of a cancelled cheque or a bank statement
- A copy of the electric/landline bill, and a copy of the water bill
- The Proprietor/NOC Owner’s (No Objection Certificate)
- A leasing deal (if premises are rented)
- Declaration of intent to abide by the rules
How to join an established Ecommerce marketplace like Flipkart, Amazon?
It’s simple to start an eCommerce company or offer products/services online by joining an established marketplace. As a seller, most e-commerce marketplaces only need a bank account and GST registration, making the transaction quick and convenient. Furthermore, on an eCommerce website, the marketplace platform manages issues such as technology growth, marketing, payment gateway, logistics, and so on, reducing the seller’s workload. Moreover, sellers may also sell their goods on several marketplaces, making it the most convenient way to start an online or eCommerce business.
How can Taxxinn help you?
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