Shopping online has become a prevailing trend, allowing individuals to purchase items from the comfort of their homes while saving time and energy. Simultaneously, owning an online business in India has become hassle-free.
Do you dream of starting a business? If the answer is yes, let’s promptly address the question: “Is registration needed to create your own web store?” Yes, there are a few registration processes that you should obtain. Let’s explore whether company registration is mandatory for online sellers.
Is it Necessary to Register a company for Online Sellers?
Once your business is operational, it is advisable to proceed with its registration. This not only ensures the security of your business but also safeguards the brand itself. Your business structure can take the form of a company, firm, or limited liability partnership. Sole Proprietorship serves as an alternative method for registering your business.
Opting for Sole Proprietorship is a more favorable approach compared to company registration. If your intention is to sell products through online platforms or establish your own website, then Sole Proprietorship is worth considering.
Sole proprietorships can have ownership by individuals, corporations, or limited liability companies. The owner and the business in this proprietorship function in unity. The owner has complete control over all aspects of the business and bears sole responsibility for its financial matters.
To initiate your online business, it is imperative to establish a current account under the business’s name. Ensuring that your business attains legal entity status is essential for maintaining a current account. This necessitates registration with taxation authorities and obtaining the requisite establishment licenses.
Upon creating an online website, it is crucial to comprehend both the preferences of your target audience and the facilitation of your business. Considering that a majority of people prefer online payment methods, it becomes imperative for your business to be duly registered. Consolidating all payment gateways in a centralized location can streamline processes and save time. This consolidation allows seamless integration with numerous recognized platforms, making the registration of an online proprietorship under legal protocols a means to eliminate hassles and confusion. Consequently, registering your business online enhances credibility, fostering trust among stakeholders.
Documents Required To Register Your Business as Online Seller
- Possession of a PAN card, or Permanent Account Number, is mandatory. In the absence of one, valid government identification documents such as Aadhar cards, voting ID cards, or passports are required.
- Additionally, a copy of the bank statement or a cancelled cheque is essential.
- Further documentation includes copies of utility bills such as water, electricity, and landline bills.
- An NOC (No Objection Certificate) from the owner is a prerequisite.
- If the business operates from a rented building for stock storage, a rental agreement must be provided.
- Moreover, a declaration confirming compliance with orders or requests related to deliveries is also necessary.
GST Registration for Online Seller
Whether your business offers services or products, if its annual sales or turnover surpasses Rs 20 lakh, GST registration is mandatory. For residents in the North East states, this requirement applies if the turnover exceeds Rs 10 lakh. In this context, GST stands for Goods and Services Tax.
Previously, various tax registrations like Excise Registration for manufacturers, service tax registration for service providers, and VAT Registration for traders were prerequisites to commence a business. However, under the GST policy, obtaining GST registration alone is adequate for fulfilling all compliance requirements.
Trademark Registration
In addition to other registrations, securing a trademark registration is crucial for safeguarding your brand identity. Protecting your brand name and image is paramount to prevent unauthorized duplication.
In simpler terms, numerous competitive companies may opt to emulate the same name, leading to potential confusion between brands and their products. To mitigate such uncertainties, trademark registration becomes highly significant. This process grants you copyright ownership of the brand name, ensuring that no other company or website can utilize an identical name.
Now that you are acquainted with the entire process and prerequisites for company registration as an online seller, we extend our best wishes for substantial traffic to your newly established company. For simplified assistance with these procedures, consider reaching out to the experts at Complianto.
