{"id":17708,"date":"2021-09-03T16:00:38","date_gmt":"2021-09-03T10:30:38","guid":{"rendered":"https:\/\/www.cagmc.com\/?p=17708"},"modified":"2024-06-03T12:48:16","modified_gmt":"2024-06-03T07:18:16","slug":"a-brief-overview-of-company-registration-for-online-sellers","status":"publish","type":"post","link":"https:\/\/www.cagmc.com\/blog\/a-brief-overview-of-company-registration-for-online-sellers\/","title":{"rendered":"A Brief Overview of Company Registration for Online Sellers"},"content":{"rendered":"<p><img fetchpriority=\"high\" decoding=\"async\" class=\"alignnone wp-image-17711 size-full\" src=\"https:\/\/www.cagmc.com\/blog\/wp-content\/uploads\/2021\/09\/A-Brief-Overview-of-Company-Registration-for-Online-Sellers.png\" alt=\"A Brief Overview of Company Registration for Online Sellers\" width=\"1200\" height=\"630\" srcset=\"https:\/\/www.cagmc.com\/blog\/wp-content\/uploads\/2021\/09\/A-Brief-Overview-of-Company-Registration-for-Online-Sellers.png 1200w, https:\/\/www.cagmc.com\/blog\/wp-content\/uploads\/2021\/09\/A-Brief-Overview-of-Company-Registration-for-Online-Sellers-300x158.png 300w, https:\/\/www.cagmc.com\/blog\/wp-content\/uploads\/2021\/09\/A-Brief-Overview-of-Company-Registration-for-Online-Sellers-1024x538.png 1024w, https:\/\/www.cagmc.com\/blog\/wp-content\/uploads\/2021\/09\/A-Brief-Overview-of-Company-Registration-for-Online-Sellers-615x323.png 615w, https:\/\/www.cagmc.com\/blog\/wp-content\/uploads\/2021\/09\/A-Brief-Overview-of-Company-Registration-for-Online-Sellers-400x210.png 400w, https:\/\/www.cagmc.com\/blog\/wp-content\/uploads\/2021\/09\/A-Brief-Overview-of-Company-Registration-for-Online-Sellers-292x153.png 292w\" sizes=\"(max-width: 1200px) 100vw, 1200px\" \/><\/p>\n<p style=\"text-align: justify;\">Online shopping has become the new way of buying things with just a click. With increased internet facility the e-commerce industry is recording high growth. Starting an online retail business is one of the best options in this tech-savvy world. More and more people are opting for online shopping in this era of coronavirus pandemic rather than venturing out. Setting up a business online is easy, and online business means the business reach is high. In this article, we will look into the procedure of company registration for online sellers in India, and the legal requirements.<\/p>\n<table style=\"width: 100%;\">\n<tbody>\n<tr>\n<td style=\"border: 1px solid #555;\">\n<p style=\"text-align: justify;\"><strong>Table of Content<\/strong><\/p>\n<ul style=\"text-align: justify;\">\n<li><a href=\"#regulatory\">Regulatory Authority for Company Registration for Online Sellers<\/a><\/li>\n<li><a href=\"#e-commerce\">How to join an e-commerce business?<\/a><\/li>\n<li><a href=\"#importance\">Importance of company registration<\/a><\/li>\n<li id=\"regulatory\"><a href=\"#process\">Process of Company Registration<\/a><\/li>\n<li><a href=\"#documents\">Documents required for company registration for online sellers<\/a><\/li>\n<li><a href=\"#legal\">Legal Requirements for online sellers<\/a><\/li>\n<li><a href=\"#conclusion\">Conclusion<\/a><\/li>\n<\/ul>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h2><strong>Regulatory Authority for Company Registration for Online Sellers<\/strong><\/h2>\n<p id=\"e-commerce\" style=\"text-align: justify;\">The Companies Act, 2013 defines a company as a company that is incorporated under the Companies Act. For registration of the company, the individual needs to incorporate the company, register the office address, notice for the appointment of directors is required, and a statement of employee&#8217;s salary structure is also needed. If someone is planning to venture into the e-commerce business and become an online seller, he can do so under sole proprietorship.<\/p>\n<h2><strong>How to join an e-commerce business?<\/strong><\/h2>\n<p id=\"importance\" style=\"text-align: justify;\">If someone is planning to join an e-commerce business, joining an established marketplace as an online seller is the easiest way. This only requires a bank account and a <a href=\"https:\/\/www.cagmc.com\/gst-registration\/\">GST registration<\/a>. Joining these big e-commerce platforms makes the process of getting our own business a little less burdensome. This is because, these e-commerce giants take care of technological developments, payment gateways, and logistics. Moreover, online sellers have the liberty to join multiple e-commerce platforms for better reach without facing any technical difficulty.<\/p>\n<h2><strong>Importance of company registration<\/strong><\/h2>\n<p style=\"text-align: justify;\">If you are establishing any kind of business, the first and foremost thing to do is to get a company registration. If you are planning to venture into the e-commerce industry, you have to decide the type of company you need to start.<\/p>\n<p style=\"text-align: justify;\">One can choose to start a company, firm, sole proprietorship, LLP, or partnership. If the company is a start-up, then sole proprietorship is the easiest to start. This business model is run by a sole person and is easy to handle.\u00a0 The owner has direct control over the whole business. You don&#8217;t need a special registration for this type of business. It is always advisable that the company gets registered, as it helps the company to gain more trust among the customers. Moreover, while doing business, the company has to maintain a current account in the name of the business. For this one has to ensure that the company is a separate legal entity. For this, it needs to be registered and have an establishment license also.<\/p>\n<p id=\"process\" style=\"text-align: justify;\">If an online seller wishes to establish a web store, they need to register themselves as a business to enable online payment. Getting company registration will bring more trust and the person will avoid any legal difficulty.<\/p>\n<h2><strong>Process of Company Registration<\/strong><\/h2>\n<p style=\"text-align: justify;\"><strong>Step 1: <\/strong>Registration can be done by online and offline mode.<\/p>\n<p style=\"text-align: justify;\"><strong>Step 2: <\/strong>After obtaining all the documents, the required forms have to be submitted with MCA by paying a requisite fee and stamp duty.<\/p>\n<p style=\"text-align: justify;\"><strong>Step 3: <\/strong>Once the forms are approved, the MCA will issue the registration certificate. Additionally, the records of the company will also be updated.<\/p>\n<p id=\"documents\" style=\"text-align: justify;\"><strong>Step 4: <\/strong>Once the person receives the incorporation certificate he can open a current account in the bank. It is mandatory to have a current account in the name of the company.<\/p>\n<h2><strong>Documents required for company registration for online sellers<\/strong><\/h2>\n<p style=\"text-align: justify;\">Following is the list of documents required for company registration for online sellers as per the Companies Act, 2013-<\/p>\n<ul style=\"text-align: justify;\">\n<li>A PAN and valid address proof like Aadhar, voter id, passport, etc. of the proprietors.<\/li>\n<li>Bank statement.<\/li>\n<li>A copy of the electricity, landline, and water bill.<\/li>\n<li id=\"legal\">A NOC of the proprietor.<\/li>\n<li>A rental agreement in case the premises is rented.<\/li>\n<li>A declaration of compliance.<\/li>\n<\/ul>\n<h2><strong>Legal Requirements for online sellers<\/strong><\/h2>\n<p><img decoding=\"async\" class=\"alignnone size-full wp-image-17716\" src=\"https:\/\/www.cagmc.com\/wp-content\/uploads\/2021\/09\/hdf.jpg\" alt=\"Legal Requirements for Online Sellers\" width=\"1500\" height=\"500\" srcset=\"https:\/\/www.cagmc.com\/blog\/wp-content\/uploads\/2021\/09\/hdf.jpg 1500w, https:\/\/www.cagmc.com\/blog\/wp-content\/uploads\/2021\/09\/hdf-300x100.jpg 300w, https:\/\/www.cagmc.com\/blog\/wp-content\/uploads\/2021\/09\/hdf-1024x341.jpg 1024w, https:\/\/www.cagmc.com\/blog\/wp-content\/uploads\/2021\/09\/hdf-1260x420.jpg 1260w, https:\/\/www.cagmc.com\/blog\/wp-content\/uploads\/2021\/09\/hdf-615x205.jpg 615w, https:\/\/www.cagmc.com\/blog\/wp-content\/uploads\/2021\/09\/hdf-400x133.jpg 400w, https:\/\/www.cagmc.com\/blog\/wp-content\/uploads\/2021\/09\/hdf-292x97.jpg 292w, https:\/\/www.cagmc.com\/blog\/wp-content\/uploads\/2021\/09\/hdf-1320x440.jpg 1320w\" sizes=\"(max-width: 1500px) 100vw, 1500px\" \/><\/p>\n<ul style=\"text-align: justify;\">\n<li><strong>GST Registration: <\/strong>If the company has an annual turnover of Rs. 20 Lakhs or Rs. 10 Lakhs in the case of north-eastern states, then they have to get GST registration. Earlier, the companies had to get various tax registrations, like <a href=\"https:\/\/en.wikipedia.org\/wiki\/Value-added_tax\" target=\"_blank\" rel=\"noopener\">VAT<\/a>, excise or service tax, etc. now after the Goods and Service Tax regime were introduced, online sellers have to get GST registration only.<\/li>\n<li><strong>Trademark Registration: <\/strong>When someone is starting an online business, keeping it different from the masses is essential for business growth. If the online sellers get trademark registration, it can help their business enormously. Trademark registration helps to protect the legal rights by safeguarding the brand name and value.<\/li>\n<li><strong>Vendor Agreement: <\/strong>This is the most important agreement when establishing an e-commerce business. Online sellers need to have an agreement with vendors listed on their online portal. This agreement brings forth the expectation of both the parties and safeguards their legal rights. This agreement includes the responsibilities of both parties and the consequence of non-payment if any.<\/li>\n<li><strong>Business License: <\/strong>The whole process of company registration depends on the type of business and the home state of the business. One needs to visit the official website of the respective state to see the company registration requirements and process.<\/li>\n<li><strong>Resale Certificate: <\/strong>If the individual deals with purchase, and reselling, they need a resale license\/certificate. All the states don\u2019t require this. This license allows stores to collect sales tax from the customers. Most vendors will ask for the resale certificate before doing business with the company.<\/li>\n<li><strong>Business Name Registration: <\/strong>Individuals need to get a business name registration for starting a business.<\/li>\n<li id=\"conclusion\"><strong>Professional Licenses: <\/strong>Some retailers need a separate professional license. One needs to check the industry-specific guideline for a professional license.<\/li>\n<li><strong>Certificate of Occupancy: <\/strong>Online sellers sometimes will need a certificate of occupancy in some areas. After applying for the certificate of occupancy, the property is inspected by the government authorities.<\/li>\n<\/ul>\n<h2 style=\"text-align: justify;\"><strong>Conclusion<\/strong><\/h2>\n<p style=\"text-align: justify;\">Every business structure has its own benefits. Online sellers can start their business from anywhere. It is the simplest and easiest to form and one of the best choices for entrepreneurs. Now, you are aware of all about company registration for online sellers. Go ahead and start your online business.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Online shopping has become the new way of buying things with just a click. With increased internet facility the e-commerce [&hellip;]<\/p>\n","protected":false},"author":11,"featured_media":17711,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"default","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"set","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[73],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v24.4 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Company Registration for Online Sellers: A Brief Overview<\/title>\n<meta name=\"description\" content=\"Read about A Brief Overview of Company Registration for Online Sellers, Importance, Process, Documents required for company registration, etc.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.cagmc.com\/blog\/a-brief-overview-of-company-registration-for-online-sellers\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Company Registration for Online Sellers: A Brief Overview\" \/>\n<meta property=\"og:description\" content=\"Read about A Brief Overview of Company Registration for Online Sellers, Importance, Process, Documents required for company registration, etc.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.cagmc.com\/blog\/a-brief-overview-of-company-registration-for-online-sellers\/\" \/>\n<meta property=\"og:site_name\" content=\"Goyal Mangal &amp; 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