How to Start E-commerce Business in India

How to Start E-commerce Business? What are the procedures? Which structure should I Choose? What is the definition of E-Commerce? These are the primary questions on an entrepreneur’s mind that comes when Business is planned let’s get the answer to these questions. India E-Commerce business is expected to Reach By 2024, the online retail market is expected to dominate the e-commerce market in India and reach a value of INR 4,289.64 billion, expanding at a CAGR of ~20.22%.

For starters e-commerce means building a business online also known as online retailers, let’s deep dive into how to start and register an E-Commerce Business in India and the steps to be followed

Steps for starting an e-commerce business

 Step 1: Decide Your E-Commerce Business Model

Step 2: Register you E-Commerce business as a corporate entity

Step 3: Opening  Bank Account

Step 4: Get your GST Registration done

Step 5: Create your own website as an e-commerce platform or register in any marketplace

Step 6: Setting up payment gate (in case of own e-commerce portal)

Step 1: Decide your E-commerce Business Models

Business model depends on the business niche and segment of the market you need to target, they are basically classified as

  • Traditional B2B (Business to Business)
  • B2B e-commerce
  • B2C (Business to Customers)
  • B2B2C (Business to business to consumer (B2B2C)

Once you have decided to niche and your business model Its time to register

There are two models in which in e-commerce business model work

  • Registering your business on an established portal such as Flipkart, Amazon, Paytm (For Products), For Services you can register on Company That offer that services such as (Urban Clap, Just Dial ) for services
  • Start your e-commerce platform by creating your own e-commerce portal (website)

Registering your company in Flipkart, Amazon (For Products), for Services you can register on Company That offer that services such as (Urban Clap, Just Dial, fiver) for services

Creating your own e-commerce portal requires a lot of time energy and money and good technological background, there are companies which solve this issue by giving you the platform like Shopify, and many more such service providers, you need take care of marketing, promotion and all other actives by yourself

How to choose a domain name

1. Register Your Domain Name

You will need to choose a domain name that nobody has already selected. You will then need to get in touch with a registrar. This is a company that is in the business of registering domain names. Virtual auditor experts in Company Registration & Website & App development at a very nominal cost contact 9962230333 ,

You will need to decide how long you want to register your domain name for. You can register it for one year or 10 years. It is completely up to you. You just need to make sure that you always keep track of when your domain name registration will expire. This will allow you to renew your domain name.

2. Hire An Experienced Web Designer :Virtulauditor to your help in both Legal and Website & App Development

Designing a site is not something that anyone has the ability to do. On the contrary, the vast majority of people do not possess the knowledge of coding that will enable them to design their own website.You should be very selective when you are hiring a web designer. Make sure you take a look at some of their previous work to see if you like it.

3. Find a Reliable Hosting Company

You will need to hire a web hosting to keep your new site online. There are many different companies in this field. You should do a thorough background check of all the companies that host websites. It is essential that the company you hire has an outstanding track record. You cannot afford to do business with a company that frequently allows the sites it is hosting to go offline for extended periods of time. That would be disastrous for your business. Find some people you know who run their own websites. Ask them what company they use to host it.

 

Step 2: Business Registration required to start E-commerce Business 

Now that you have decided on your business model, business registration is the next step in making your entrepreneurial journey a success and a reality.

You must know e-commerce needs a lot of capital and deep pockets as the market completion is stiff and customer acquisition cost is very high, Banks in India typically shy away from lending to this kind of start up ’s.

As the Capital Requirement is high most preferable route would be to form a private limited company, more so since you need investors

Advantages of Private Limited Company

  • Ease of formation
  • Shares can be easily transferred
  • Allotment of shares to investors and others is a smooth process
  • It a Separate Legal entity
  • The company can be formed with very minimum capital Rs 1,000/-

Why not choose an LLP or a One person Company?

There are a lot of restriction on LLP ( Limited Liability Partnership) in terms of Foreign Direct Investment, and transfer of shares which investors do not prefer

In the case of a one-person company, turnover is restricted to 2 Crores and cannot allot shares to others

Given the above the best to choose a private limited company

Step 3 : Opening a Bank Account to Start E-commerce Business operations

Once the company is registered, you must open a bank account  in any bank , for opening a bank the following would be required

  • Copy of PAN Card or ePAN Card
  • Memorandum of Association
  • Articles of Association
  • Certificate of Incorporation
  • Resolution of the Board of Directors to open an account and identification of those who have authority to operate the account

Step 4: Tax Registration: Get your GST Registration done

Once PAN Card for the business and opening a bank account is opened, then proceed with other indirect tax registration

All e commerce companies such as flipchart, amazon, Paytm  mandate its supplier to have a GST Registration , in other words, you cannot enroll with them without GST Registration Number this is applicable for both Service providers and

You can approach a online market place with the following documents

1)PAN Card copy,

2)Certificate of Incorporation of the Company and

3)Cancelled cheque

4) GST Registration Number

 

Step 5: Payment Gateway for E-commerce Business

Payment Gateway is must if you have your own website, all major marketplaces have an existing payment gateway infrastructure

By definition, A payment gateway is a merchant service provided by an e-commerce application service provider that authorizes credit card or direct payments processing for e-businessesonline retailers,

For getting a payment gateway the mandatory documents are and your website must have the following

  • Website Terms of Use
  • Website Privacy Policy
  • Refund Policy
  • Bank account in the name of the business
  • PAN Card of the business
  • Certificate of Incorporation
  • Memorandum of Association
  • Articles of Association
  • Identity Proof
  • Address Proof

Once the above documents are submitted, a payment gateway will be provided for the ecommerce business to enable online payments. List of the payment gateway providers in India;

  • Instamojo
  • Razerpay
  • CC Avenue
  • PayU
  • EBS

Conclusion:

Ecommerce is way ahead in India , with the data disruption caused by cheap data provided by Reliance Jiu , and other telecom players  As India Starts to use data and moves to a digital economy e-Commerce will be a major driving force in the future

Government is also aggressively promoting digital India campaign which will only increase the market share .

Awake Arise , this is a new opportunity to create a milt billion dollar companies and corporates, data & digital economy is the future .

For company incorporation online or website designing and mobile app Your Experts Virtual Auditor is here to support you For any assistance on  company registration / Mobileapp /Website contact virtual Auditor support team at [email protected] or contact 99622 60333 and 99622 30333, we will help you with the process

 

 

 

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How to Register & Start E-Commerce Business in India ?
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How to Register & Start E-Commerce Business in India ?
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How to Start E-commerce Business? What are the procedures? Which structure should I Choose? What is the definition of E-Commerce? These are the primary questions on an entrepreneur’s mind that come when Business is planned let's get the answer to these questions
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Virtual Auditor Private Limited
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