E-commerce Company Registration in India: Startup Guide, GST & Legal Requirements

A E-commerce, or electronic commerce, refers to buying and selling goods or services over the internet. It encompasses a wide range of activities, from online retail to online auctions and digital payments.

A Common models include:
• B2C (Business-to-Consumer): Selling directly to individual customers (e.g., online retail stores).
• B2B (Business-to-Business): Transactions between businesses (e.g., wholesale marketplaces).
• C2C (Consumer-to-Consumer): Online marketplaces facilitating transactions between individuals (e.g., online auction sites).
• C2B (Consumer-to-Business): Consumers offering products or services to businesses (e.g., freelance platforms).

A Several regulations apply, including:
• Information Technology Act, 2000
• Consumer Protection Act, 2019
• Goods and Services Tax (GST) laws
• Foreign Exchange Management Act (FEMA)
• Competition Act, 2002
• E-commerce Rules, 2020

A You can choose from:
• Sole Proprietorship
• Partnership
• Limited Liability Partnership (LLP)
• Private Limited Company

A While not always mandatory for very small businesses, registration is highly recommended for legal compliance, building credibility, and accessing various business benefits. GST registration is mandatory if your turnover exceeds the prescribed threshold.

A The process typically involves:
• Choosing a business name and structure
• Obtaining a PAN card
• Registering with the MCA (if applicable)
• Obtaining GST registration (if applicable)
• Obtaining other necessary licenses and permits

A The specific documents vary based on the chosen business structure, but generally include:
• Identity proof of owners/directors/partners
• Address proof of business and owners/directors/partners
• PAN card
• Business registration documents (if applicable)
• GST registration certificate (if applicable)
• Bank account details

A No specific "e-commerce license" exists. However, you may need other licenses depending on the products you sell (e.g., FSSAI license for food products, drug license for pharmaceuticals). A shop and establishment license might also be required in some states.

A Yes, if your annual turnover exceeds the threshold limit prescribed under the GST Act. Also, if you are selling goods across state boundaries, then GST registration is mandatory irrespective of your turnover.

A GST applies to all online sales, and the place of supply rules determine which state's GST will be applicable. E-commerce operators are also required to collect Tax Collected at Source (TCS) on certain transactions.

A E-commerce businesses are subject to income tax on their profits. They also need to comply with GST regulations and other applicable tax laws.

A You need to register as a seller on the marketplace platform and follow their listing guidelines.

A Payment gateways facilitate online payments from customers. They are essential for e-commerce businesses to securely process credit card, debit card, and other online transactions.

A Examples include Razorpay, Paytm, CCAvenue, and BillDesk.

A You can either handle shipping yourself or partner with a logistics company or aggregator.

A Examples include Delhivery, FedEx, Blue Dart, and Ecom Express.

A The Information Technology Act, 2000, and the upcoming Digital Personal Data Protection Act, 2023, are key regulations governing data privacy and security.

A Use secure payment gateways, implement data encryption, and comply with PCI DSS standards if you handle credit card information.

A The Consumer Protection Act, 2019, provides various rights to consumers, including the right to information, the right to safety, and the right to redressal. E-commerce businesses must comply with these regulations.

A You need to have a clear and transparent return and refund policy in compliance with consumer protection laws.

A This guide covers many aspects of starting an online business.

A Covered in the sections on regulations and registration.

A Costs vary depending on business structure, scale, and chosen services.

A Depends on your business model and target audience; consider marketplaces, own website, etc.

A Not always; you can sell through marketplaces or social media platforms.

A Digital marketing strategies, social media marketing, SEO, etc.

A Email, phone, live chat support, etc.

A Clear return policy, efficient processing, customer communication.

A Competition, logistics, customer acquisition, etc.