Is company registration required for Online Sellers?
Shopping online is very common nowadays as it is a convenient way to buy things and with just one click you can get the job done without wandering in the market. Today, most of the customers do not visit the retail shops and aren’t at the mercy of the traders selling a particular merchandise. The current scenario of online shopping has in a true sense transformed the market and has become a customer-centric market from a seller-centric.
Do you feel inspired enough for starting your own business where you could sell your products or services online in India? If yes, then you need to follow and go through some of the steps listed below.
Why Is It Necessary To Register Online Company?
Basically, if you’re doing any business are required to register such business either as a Company or a Firm or an LLP (Limited Liability Partnership). Instead of going for company registration, you could register the business as a Sole proprietorship. If your objective is to sell goods through online marketplaces or create your own web store, then consider for proprietorship while indulging in the retail business.
A proprietorship is a business form which is run by a sole person and wherein there isn’t any key distinction between the business and the owner. The owner has the direct control of every element of the business and is accountable for all the finances of that business and might include loans, debts, loss etc.
When doing online business, you have to maintain a current account in the name of your business. To do this, you need to ensure that your business is a legal entity. To prove this, you get registered with the taxation authorities and also obtain establishment license.
For your web store to gather online payment, you need to register your business. This method will permit you to integrate your site with the recognized gateway. Furthermore, registering online proprietorship assists you to avoid hassles and confusions with the law & the registered business is likely to receive more trust.
Documents needed for starting Sole proprietorship business
- PAN card (Permanent Account Number) and valid government recognized ID proof (passport, voter card, aadhar, etc.) of the proprietor
- Bank statement or a copy of a cancelled cheque
- Copy of electricity bill/ landline bill, water bill
- NOC (No objection certificate) of the Proprietor/owner
- Rental agreement (if premises are rented)
- Declaration to comply with the provisions
Whether you are offering services or product, you need to register for GST ( Good and Service Tax) if the sales or turnover cross more than INR 20 lakh annually or INR 10 lakh in case the establishment is in the North East States. Now, it is something which needs all your focus. Earlier, you were required to apply for various tax registration for starting a business. Registration for VAT for traders, excise registration for manufacturers, service tax for service providers, etc. However, under the Goods and Service Tax regime, only GST registration is enough for all the compliances.
Apart from the registration mentioned above and GST registration, safeguarding your brand image is another important task. In today’s world of cut-throat competition, maintaining and persevering your legal right is very crucial.
Therefore, a trademark registration would assist you in securing your brand name so that no one could use it or copy it without your authorization.