The process of registering an e-commerce business is completely online. If you're unsure where to start, don't worry.

 

With the growing use of the internet and technology, the number of e-commerce businesses in India is rapidly increasing.

 

In this blog, we will guide you through the registration process, the required documents, and other vital details.

 

So, you can register your e-commerce business in the following steps :

 

Get In Touch with an Expert:

 

There are several reasons why you should contact an expert for E-commerce business registration.

 

You can save a significant amount of time and money. Additionally, you may not be familiar with the different types of business structures, how they function, and which is most suitable for your company.

 

Without this knowledge, you may make errors when completing the application, resulting in a possible rejection. Therefore, it's best to contact an expert by completing the form on your right.

 

An expert can guide the best type of registration for your E-commerce business and assist you in accurately completing the forms.

 

Our professional consultants at StartEazy can help you understand the legal requirements, mandatory registrations, and other paperwork you must complete to set up your business. 

 

Our team will help you select the most suitable type of business structure for your E-commerce business and provide you with insights into how to apply for E-commerce business registration.

 

Moreover, they will ensure, you have not overlooked any necessary licenses or compliances.

 

 

Choose Your Business Type

 

The first and foremost part of registering your e-commerce business is selecting your business type. There are five types of business structures you can choose from to start an e-commerce business:

 

1. Sole Proprietorship
2. Partnership
3. Limited Liability Company (LLC)
4. Private Limited Company
5. One Person Company

 

Generally, the best options for an e-commerce business are:

 

Sole Proprietorship or Partnership Firm 

 

• Ease of Setup: It is a simple and easy process.
• Small Scale: Ideal if you want to start on a smaller scale.
• Required Registrations: Name reservation, MSME registration, GST, Company’s bank account, and Shop & Establishment license (if setting up your workstation outside).
• Time Frame: The registration process typically takes around 7-12 days.

 

OPC Or LLP or Private Limited Company

 

• Growth Potential: Suitable for an e-commerce startup aiming to grow on a larger scale.
• Website and Expansion: This allows you to create your website and expand your business internationally.
• Time Frame: The registration process typically takes around 12-15 days.

 

By carefully selecting your business type and ensuring proper registration, you can position your e-commerce venture for success in the rapidly growing Indian market.

 

 

Name Reservation

 

Selecting and registering the right name for your business is crucial for establishing your online presence.

 

This involves choosing a name that is unique, reflective of your brand, and easy for customers to remember and type.

 

If you are struggling to pick the best name for your e-commerce business, here are some suggestions:

 

• ShopEase
• TrendMart
• QuickCart
• UrbanBuy
• NovaStore
• PrimeGoods
• MegaMart
• EcomHaven
• ShopSphere
• GlobalGroove

 

Choose a company name that is not too generic or too specific.

 

To assist you in this process, our team of experts will conduct complete research on your suggested names.

 

After this, we will submit the name reservation application to the Ministry of Corporate Affairs (MCA).

 

The name approval typically takes approximately 7 working days.

 

Therefore, ensure you apply for company registration with the reserved name within this period.

 

Ensuring that your chosen business name aligns with your business identity and objectives is essential, as it forms a significant part of your online brand and marketing efforts.

 

 

Documents:

For sole proprietor or Partnership

 

Identity Proof:

 

• PAN Card
• Aadhar Card

 

Address Proof:

 

• Utility Bill (electricity, water, or telephone bill)
• Rental Agreement (if applicable)
• Bank Statement (showing current address)

 

Business Proof:

 

• Udyam Registration (for MSMEs)
• GST Registration (mandatory if turnover exceeds the point or for certain categories)

 

Bank Account Details:

 

• Bank Account Number
• IFSC Code
• Cancelled Cheque

 

Business Licenses:

 

• Shop and Establishment License (if you have a physical location)
• Professional Tax Registration (if applicable in your state)

 

Private Limited Company or OPC or LLP :

 

1. Identity Proof of Directors and Shareholders

 

• PAN card of all directors and shareholders
• Aadhar card, passport, or driving license of all directors and shareholders

 

1. Address Proof of Directors and Shareholders
   • Utility bill (electricity, water, or gas bill)
   • Bank statement or passbook copy
   • Rent agreement, if applicable

 

1. Proof of Registered Office Address

 

• Utility bill of the business address
• Rent agreement, if the property is rented
• No Objection Certificate (NOC) from the property owner

 

1. Director Identification Number (DIN)

 

• Required for all directors (can be applied for during registration)

 

1. Digital Signature Certificate (DSC)

 

• Required for all directors (can be applied for during registration)

 

1. Memorandum of Association (MOA)

 

• Defines the scope and purpose of the business

 

1. Articles of Association (AOA)

 

• Defines the internal rules and regulations of the company

 

1. Incorporation Documents

 

• Form SPICe+ (Simplified Proforma for Incorporating Company electronically)
• Form INC-9 (Declaration by subscribers and directors)

 

1. Proof of Business Activity

 

• Details of the business activity to be undertaken by the company

 

1. GST Registration

 

• PAN card of the company
• Aadhar card of authorized signatory
• Address proof of the registered office.
• Bank account details (canceled cheque or bank statement)
• Digital signature of the authorized director

 

 

Apply for DSC Certificate and DIN Number

 

For E-commerce business registration, especially as a Private Limited Company or LLP, obtaining a Digital Signature Certificate (DSC) and Director Identification Number (DIN) is essential.

 

To apply for a DSC, choose a government-approved Certifying Authority (CA), fill out the application form, and submit identity, address proof, and a passport-sized photograph.

 

Verification might require in-person or video confirmation upon payment. And you’ll receive the DSC in a USB token.

 

For a DIN, submit Form DIR-3 on the MCA and attach proof of identity, address, a recent photograph, and a board resolution if needed.

 

Digitally sign the form using your DSC, submit it online, and pay the fee. Upon MCA verification, the DIN will be issued.

 

Thus, all new companies must obtain a Digital Signature Certificate (DSC) and a Director Identification Number (DIN). Our team of experts will assist you throughout this process.

 

 

Drafting MOA & AOA:

 

The Memorandum of Association (MOA) and Articles of Association (AOA) are critical documents required for the registration of a company.

 

The MOA defines the company's objectives and scope of activities, while the AOA lays out the rules for the company's internal management.

 

Our experts are experienced in drafting these documents in compliance with the Companies Act, 2013.

 

The MOA is a document that states the purpose and objectives of your E-commerce business and outlines its powers and authority. 

 

Here are the sample objectives for an E-commerce business:

 

Sample 1:

 

The objectives for which the company is established are to engage in the business of operating an e-commerce platform and digital marketplace for the buying and selling of goods and services online.

The company aims to facilitate transactions between businesses (B2B), direct sales to consumers (B2C), and digital transactions between firms (B2B e-commerce).

Additionally, the company intends to provide services such as payment processing, logistics management, and customer support.

The MOA further specifies the company's authority to enter into agreements, acquire assets, and expand its operations domestically and internationally as deemed necessary by the board of directors.

 

Sample 2:

 

To carry on the business of providing an online marketplace for the trading of goods and services, allowing sellers to list their products and buyers to purchase these products through the company’s website and mobile applications. The company will offer value-added services such as inventory management, warehousing, fulfillment, and customer relationship management (CRM). The company also intends to collaborate with third-party vendors, suppliers, and service providers to enhance its product offerings and operational efficiency.

 

Sample 3:

 

Our vision is to design, operate, and oversee a comprehensive e-commerce platform catering to niche markets, specifically focusing on handmade crafts, organic products, and eco-friendly goods. Our primary objective is to provide extensive support to small and medium-sized enterprises (SMEs) and individual artisans by furnishing them with a robust digital storefront and sophisticated marketing tools to enhance their online presence and reach a wider customer base. In addition to this, our company is committed to advocating sustainable business practices and supporting products that actively contribute to environmental conservation and promote social responsibility.

 

Sample 4:

 

The company will specialize in operating an e-commerce platform offering both retail and wholesale services. Through our online website and mobile applications, we will provide a diverse range of products, catering to everyday needs as well as luxury items. Our unique selling point lies in the integration of data analytics and artificial intelligence to customize the shopping journey for each customer, ensuring a personalized experience and offering targeted promotions based on individual preferences. Furthermore, we are committed to leveraging technological advancements to strengthen platform security, optimize supply chain management, and continuously enhance user satisfaction through seamless operations.

 

These examples cover a wide range of potential objectives for an e-commerce business, highlighting various business models, market niches, and value-added services that can be incorporated into the MOA.

 

The Article of Association (AoA) outlines how shares will be allocated among shareholders, how shareholders will make decisions, and the number of shareholders in the company.

 

 

Submit SPICe+ Form

 

Once receiving the documents from you, our team of experts will thoroughly review them and accurately fill out the SPICe+ form with the information provided.

 

Once all the necessary information has been entered into the SPICe+ form, we will proceed with the submission for approval.

 

The Ministry of Corporate Affairs (MCA) will thoroughly review your application. Upon approval, the MCA will issue a Certificate of Incorporation, signifying the legal registration of your company.

 

This Certificate of Incorporation carries significant weight, serving as indisputable evidence of your company's legal status. It will be essential when opening a bank account or applying for various licenses and permits.

 

Upon successful completion of this process, your E-commerce business will be registered, thereby granting you the green light to commence operations.

 

 

GST Registration

 

For e-commerce businesses, GST registration is mandatory regardless of turnover, unlike other businesses that have an entry limit.

 

E-commerce businesses involved in the supply of goods or services through online platforms or inter-state transactions must register for GST.

 

The benefits of GST registration include added lawfulness, the ability to claim Input Tax Credit (ITC), easier expansion opportunities, and streamlined taxation.

 

HSN Code for E-commerce Operations

 

The Harmonized System Nomenclature (HSN) code and the Services Accounting Code (SAC) are unique codes assigned to different services and products to standardize their classification for taxation purposes.

 

Each service and product will have specific HSN and SAC codes based on their characteristics and the nature of the business.

 

While there is no distinct HSN code exclusively for e-commerce businesses, e-commerce operators providing services such as warehousing, logistics, and other related services may use service accounting codes (SAC) instead.

 

SAC Codes for Specific Services Sold on E-commerce Platforms:

 

For services provided by e-commerce platforms, the following SAC codes can be relevant:

 

• SAC 440221: DRY CLEANING SERVICES

 

• SAC 440326: PACKAGING SERVICES

 

• SAC 440067: GOODS TRANSPORT OPERATORS

 

• SAC 440598: HEALTH SERVICES BY A CLINICAL ESTABLISHMENT, HEALTH CHECKUP/DIAGNOSIS ETC.

 

HSN Codes for Specific Products Sold on E-commerce Platforms

 

If you are selling specific goods through an e-commerce platform, you need to use the appropriate HSN code for those products. Here are a few examples:

 

• Books: HSN Code 4901

 

• Clothing and Apparel: The HSN Codes range from 6101 to 6217 for men's wear, 6104 to 6117 for knitted garments, and 6204 to 6217 for non-knitted garments for women's wear (depending on the type of clothing).

 

• Electronics: HSN Codes range from 8471 to 8528 (depending on the type of electronic product)

 

• Beauty and Personal Care: HSN ranges from 3304 to 3305 ( depending on the type of beauty and personal care).

 

GST registration for E-commerce firms is a complex process. It involves many steps and is also time-consuming. 

 

Thus, it requires expert knowledge to avoid mistakes and save time.

 

 

Cost of E-commerce Business Registration in India

 

The cost of registering an E-commerce business in India depends on various factors including the number of directors, registration fees, the state of incorporation, and other applicable charges.

 

E-commerce business registration typically costs between INR 10,000 to INR 30,000.

 

This fee covers the registration charges for obtaining a Corporate Identification Number (CIN), Permanent Account Number (PAN), Tax Deduction and Collection Account Number (TAN), Director Identification Number (DIN), two Digital Signature Certificates (DSCs), document preparation, professional fees, and the Shops & Establishment License.

 

Setting up an e-commerce business involves a multifaceted process. Hence, it is advisable to seek professional guidance from the beginning.

 

An expert consultant can streamline the process, making it faster and hassle-free. They ensure all legal requirements are met and the paperwork is completed accurately, facilitating a smooth registration process.

 

 

 

 

 

Establishing an e-commerce business can be complicated, but our team at StartEazy is here to help.

 

Our professional consultants can guide you through the legal requirements, mandatory registrations, and other necessary paperwork for setting up your e-commerce business.

 

They will assist you in selecting the right business structure, such as a private limited company or a one-person company, tailored to your needs.

 

A private limited company is generally the preferred structure for e-commerce businesses, but if you are a single director seeking similar benefits, a one-person company might be a suitable option.

 

Choosing the correct legal structure is vital for the success of your e-commerce business.

 

Our consultants will ensure a smooth registration process, saving you both time and money. To get started, fill out the form on the right!

 

Interested in starting an E-commerce business but not sure where to begin?