Is Company registration mandatory for Online Sellers?

registration mandatory for online Sellers


Online shopping has, as we all know, been popular lately. It not only enables you to make purchases right from your home but also helps you save time and effort. On the other hand, running an online business in India is now hassle-free.

Do you have company startup aspirations? If the response is affirmative, let’s go on to the next question, “Does registration need to be required to start your own web store”? In other words, yes, there are a few registration procedures that must be completed. Let’s examine whether company registration for online sellers is required.

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Do online sellers need to register their businesses?

Nowadays, the majority of clients do not frequent retail stores and are not at the whim of the merchants peddling a specific item. The current trend of online shopping has effectively changed the market, moving it away from being seller-centric and toward being customer-centric.

Do you have the motivation to launch your own company and offer your goods or services online to Indian customers? If so, you must follow and complete some of the actions listed below.


Why are legal registrations required for online businesses?

E-commerce companies need a payment gateway in order to use wallets for debit/credit cards, UPI, etc.


Legal Entity Proof for Payment Gateway: In order to lower the risk of fraudulent businesses, payment gateway companies like Paypal, Razorpay, etc. require an e-commerce company to provide confirmation of its legal existence.

Opening a bank account is necessary for any company to invoice customers under its own brand name, therefore legal documentation of the firm is also necessary.

Creating trust: Now, creating goodwill or building trust is a crucial component of a long-term successful business. Therefore, if a business is officially registered, customers will trust it. Additionally, it aids in brand protection and safeguards against government noncompliance notices.

Fundraising & Loans: Businesses need money in the long run to keep running their operations, which they borrow from banks or investors. The entity will benefit from legal registration when trying to raise money or get a bank loan.

Documents Required For Business Registration You must own a PAN card. in the absence of one. A Permanent Account Number is referred to as PAN. It is necessary to present legitimate government identification documents such as passports, voting ID cards, and Aadhar cards. A duplicate of the bank statement or cancelled check is required. Additionally, you need a copy of your landline, energy, and water bills. An NOC of the Owner must already exist or be created. Where a No Objection Certificate (NOC) is referred to. If you have rented a structure to keep your stocks, you must present a rental agreement. Along with the delivery, you must certify that you will abide by the directive or request.


Gst registration

All firms that sell products and services are subject to the taxes. A business owner who operates an online store must apply for GST Registration as soon as operations begin or shortly after your company is registered. If you want to sell on any online marketplaces, including Amazon, eBay, and Flipkart, you must be registered for GST; otherwise, you will not be permitted to do so. As a result, one of the criteria for internet vendors is GST Registration.


Vendor Agreement

A contract with each vendor featured on their portal is a requirement for online retailers. if they are solely selling their own products and are not operating a market. Therefore, a deal with the suppliers needs to be made. Therefore, this agreement should outline what each party expects. The roles and responsibilities of both parties should be outlined in this agreement, along with how any defaults will be handled, payment terms, etc.


Trademark protection

While defending their own, the internet company seller must make sure they are not infringing on the intellectual property of others. They should therefore make sure that the name the business owner chooses to use or to sell under doesn’t seem too much like any other name. After the business name has been properly decoded, it is advised that the owner register a trademark for it. They would therefore need to guarantee the legitimacy of the brands being sold on the online portal. Legal notices for the owners of the other brand would always result from the sale of counterfeit goods.