Today we shared with You Very Interesting Topic about Starting a Online Business and their Registration and Legal Procedure.

How to Register a Online Business in India

Basically in India most of the people looking of business opportunity and from last 4 to 5 years many entrepreneurs in india choose online business. so today we told you about some online businesss categories and their registration process. so lets start with step b step.

So First of all we divide business in 2 Category :-

  • A Service Based Business.
  • A Product Based Business.

Now Lets talk about the ECommerce business which are starting by most of the startups :-

Ecommerce Business in India

Ecommerce Business is most popular startup in India. its a trend a india from last 5 years. Most of the companies successful in this segment so today we told you How to Start a ECommerce Business in India as legally.

First of all for starting a ecommerce business you have a proper business model so we share 2 business model in the ecommerce stream :-

MarketPlace Model ECommerce Business in India

In this model basically startups have to make a interactive website as a marketplace and register the seller and their products on their website and charge a fixed or product based commission or per successful transaction. they are providing Logistics services and Payment Gateway or Marketing Services to seller.

Examples in this segment :- Amazon, Flipkart, Snapdeal, Shopclues, Ebay, Infibeam & many more.

How ECommerce Marketplace Business Works ?

They are works in following simple ways :-

  1. Seller Register with them with their VAT Registration ID and other require documents.
    Must Read : How to Register Ecommerce Business
  2. Seller Signup with them a legal agreements regarding payout and other terms.
  3. Seller upload their products on their seller panel.
  4. Seller recived the order.
  5. Marketplace pickup the product and delivered to customer.
  6. Customer pay to Marketplace.
  7. Marketplace deduct the commission which is predefined.
  8. Seller Received the payment with VAT Taxes from Marketplace.
  9. Seller have to deposit VAT Taxes to government.
  10. Seller got the ratings from customer and ranking will be up.

So these is brief and simple process regarding the marketplace ecommerce.

Now Lets Talk about the Second Model that is

How to Start Ecommerce Business in India as Own Storee and Own Products

In this model startups have to prepare their website with their products regarding other sellers products so its a your own brand or your own personal online store. even these startups regsiter with other marketpalce also like Snapdeal/Amazon.

Must Read : How to Register as Seller on Shopclues

How to Register Ecommerce Business in India

Startups mainly register their marketplace or your own store as 5 types :-

  1. Proprietorship Registration :- Less Popular among Ecommerce business but best way to start as service based business or on other marketpalce registration.
  2. Partnership Registration :- Its a best way to start the business  when you have partners and working in other companies.
  3. Private Limited Company Registration :- its a popular way to register any business in India. Most of the Startups register under this formation.
  4. LLP Registration :- LLP Registration is also similer like company registration but its a best way when your budget is limited.

So Ultimately any type of Ecommerce Business as above 4 types. if we talk about the taxation then Just VAT Registration is imposed in the case of second model , if we talk about the marketplace then service tax registration is imposed.

Some Helpful Resources :-