Business can be very risky if you don’t make the right moves at every step. Business can be very costly if you aren’t willing to learn and to reinvest back in the game. If you’re an online business or e-commerce seller, your business structure can be pretty rough based on the decisions you make.
The online e-commerce business is going through a 360-degree growth in India that is because of the availability of the World Wide Web i.e. Internet and the growing Smartphone business market in India. The low cost and easy to afford internet connections is providing as a boost for the online e-commerce business, this is motivating even small businessmen to enter into the online e-commerce business world.
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Start E-commerce Online Business
These are questions in the mind of an entrepreneur that popup, when Business is deeply planned, let’s talk about the answers to these important questions. Indian e-commerce business is expected to grow up to 850 billion dollars by 2020. For a startup e-commerce means growing/building an online business online also known as e-commerce online retailers, let’s go deep into how to start and register an online e-commerce business in India and the process to be adopted.
Procedure for starting an e-commerce business
- Think and confirm Your e-commerce Business Model.
- Register your e-commerce business as a corporate company.
- Open a Bank Account
- Get your online e-commerce business GST Registered.
- Make your own website as an online e-commerce platform or register it in a marketplace.
- Set up a payment gate (if it’s your own e-commerce portal).
1. Think and confirm your E-commerce Online Business Models
The business model is made on the business niche and segment of the market that need to be targeted, they are classified below as:-
- B2B- Business to Business.
- B2B- eCommerce
- B2C-Business to Customers.
- B2B2C -Business to business to consumer.
Once a niche business model is confirmed and Its time to register the business.
There are 2 models in which an e-commerce business model works:
- Register your business on a reputed/established portal i.e Flipkart, Amazon, Paytm for Products And, for Services you can register your company, which offers services such as Urban Clap, Just Dial, etc.
- Start the e-commerce platform by creating own eCommerce portal.
Register the company in amazon, Flipkart for Products, for providing services one can register the Company which offers services such as Urban Clap, Just Dial, fiver, etc. By creating your own e-commerce website/portal requires a lot of time, energy and money and technological knowledge, there are companies which give giving platform like Shopify, and much more service providers, you need to handle marketing, promotion, and all other actives on your own.
2. Business Registration is required to start eCommerce Online Business
Now that we have confirmed our business model, getting a business registration is important in making entrepreneurial success. One should know eCommerce require a lot of capital as the business market completion is tough and maintaining and retaining a customer cost is high, Banks of India think twice from lending money to start up ’s. As the monitory requirement is high. so the best route would be to form a private limited company because one needs investors.
Benefits of a PVT LTD Company:- Easy of form, without any difficulty.
- Shares are easily transferred.
- Allotment of shares to investors and others can be done easily.
- Separate Legal entity
- A company can be created with a minimum monitory cost of Rs 1,000/-.
Choosing an LLP or a One person Company:- There are many restrictions on LLP limited liability partnership in terms of a Foreign Direct Investment, and the transfer of shares that most investors do not like. In the case of a one-person company, turnover restrictions are up-to 2 Crores and cannot allot shares to others. Seeing the above the best choice is a private limited company.
3. Opening a Bank Account to Start online E-commerce Business
As the company is registered, one must open a bank account in any bank, for opening a bank the following documents are required:-
- A 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 the authority to operate the account.
4. GST Registration
PAN Card of the business for opening a bank account, and when it is opened, then we should do other indirect tax registration. As all e-commerce companies such as flip-kart, Amazon and Paytm, etc makes it mandatory for its supplier to take a GST Registration, in simple words, one cannot register or enroll with them without GST registration number as it is applicable for both Service providers and You one can approach an online market place with the following documents:
- PAN Card copy,
- Certificate of Incorporation of the Company and
- Canceled cheque
- GST Registration Number
5. Payment Gateway for online eCommerce Business
A payment gateway is a mandatory requirement, if you have your own online website, all marketplaces have their existing payment gateway infrastructure. The meaning of payment gateway is a merchant service provided by an eCommerce application service provider that authorizes credit card or direct payments processing for-online e-business online retailers. For getting a payment gateway the important documents are as mentioned below:
- 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.
Advantages of Remote virtual office address as address Proof for GST registration for eCommerce business in India
The Proof of office address, e-commerce sellers, business owners/visionaries/dealers can use Remote/virtual office address
Business Entrepreneurs are presently are working in many other business states/areas/territories i.e all over India/PAN India. As per GST rule, it is mandatory to take GST registration in a state, if there is the supply of goods/services in that state from another state, in any event, even in GST input tax credit, GST number is required.
To take the GST number, it is mandatory to have an office addresses in that state. A good number of the eCommerce sellers, operators like to take remote office space, address/virtual office space, address, as it makes it financially easy. Even online shoppers will store their products and sell their products all over India or at various states in India.
There will be a need for office addresses in that state for GST registration and in each state. To get GST number in a particular state, it is mandatory to have an office address in that state, as remote virtual office address is monetarily easy to take, this will help online business owners/sellers to get GST registration in that state, Virtual office address is considered very cost-effective compared to taking physical office space address. The cost of a virtual office address starts at the very least rate cost of Rs.1000/per month.
As the above documents are submitted, the payment gateway will be provided for the e-commerce business to start online payments. Name of some payment gateway providers in India are mentioned below:-
- Instamojo
- Razorpay
- CC Avenue
- PayU
- EBS
In the end, we would like to say:-E commerce is growing very fast in India, as the data disruption caused by very low-cost data provided by Reliance, etc. As India is starting to use data and is fast-moving in a digital online business economy, e-commerce will be a major driving force for the Indian economy in the future. The government of India is also pushing the digital India campaign which will increase the digital market share. This new online eCommerce digital business opportunity will create a multi-billion dollar Indian companies in the future.
InstaSpaces is one such virtual office space provider who holds solid experience and a high number of satisfied clientele in the field of virtual office spaces industry is around 28 states along with union territories in India.
InstaSpaces handles every particular legal formality in terms of GST registration. Hope this information can help you to make a big move in being a part of InstaSpaces. If you’ve got any query, visit the web site and connect with our skilled support team for the detailed view.
Phone:- +91–888-270-2020
Email:- [email protected]
Happy Hunting!
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