As we all know, shopping online has become a trend now . It not only helps you to buy things directly from home but also saves your time and energy. On other hand, owning an online business is now hassle free in India.
Do you dream of starting a business? If the answer is yes, then let’s quickly move to the question “Does registration is needed to create your own web store”?. So, yes there are few registration processes that should be obtained. Lets see is it mandatory to company registration for online sellers.
Is it Necessary to Register?
As soon as your business is up and running, you should register it. This process not only secures your business but also the brand itself. Your business can either be a company / firm /limited liability partnership. Sole Proprietorship is an alternative way for company registration.
The better way to register your business as Sole Proprietorship instead of company registration. If you want to sell products through online platforms or create your own website then consider Sole proprietorship.
Sole proprietorships can be owned by individuals, corporations, or limited liability companies. The owner and business of this proprietorship are similar. All aspects of the business are controlled by the owner, and he or she is solely responsible for all financial aspects of the business.
When you want to start your online business, you have to open a current account in the name of your business. It is important that your business is a legal entity in order to maintain a current account. This means you have to register with the taxation authorities and acquire establishment licenses.
When you have created an online website, it is crucial to understand the needs of both your customers and your business. Most people will prefer to make their payments online. Therefore, your business should be registered. Obtaining all payment gateways in one place will help you save time, as it allows you to integrate with most of the recognized platforms. Pvt Ltd company registration helps you to get rid of hassles and confusion, ensuring smoother operations. This way, your registered business is likely to gain more trust from your customers.
Documents Required To Register Your Business
- You need to have a PAN card. If you don’t have one. PAN refers to a Permanent Account Number.
- Valid government identification documents such as aadhar cards, voting ID cards, passports are required.
- You must have a copy of the bank statement or canceled cheque.
- Further, you must have a copy of the water bill, electricity bill and landline bill.
- You must have or create an NOC of the Owner. Where NOC refers to a No Objection Certificate.
- You must provide a rental agreement if you have rented a building to store your stocks.
- You must provide declaration to obey order/ request with the delivery
Registration of GST
No matter what you are offering either a service or product, if your company’s sales or turnover exceeds more than Rs 20 Lakh annually, you must register for GST. And If you are living in North East states, You must register if it exceeds more than rupees 10 Lakh. Here, GST refers to Goods and Service tax.
While keeping in mind that before there were various tax registration to be applied to start a business such as an Excise Registration for manufacturers, service tax registration for service provider, VAT Registration for traders.Although, under GST policy, only GST registration is sufficient for every compliance.
Registration of Trademark
Apart from all the registration, trademark registration helps to protect your brand image. It is important to safeguard your brand name and image, so that nobody copies it without your concern.
In simple words, there are many competitive companies that choose to copy the same name.
A brand and its product can be confused by the same name. In order to avoid such doubts, trademark registration is very important. By doing so, you own the copyrights of the brand name and ensure that no other company or website can use the same name as yours.
Now, when you have known all the process and necessities to do the company registration as an online seller. We wish you good traffic for your brand new company. Reach out to the experts at Vakilsearch to have all this simplified for you.
Conclusion
Company registration is essential for establishing a secure and trusted online business. Whether you choose to register as a Sole Proprietorship, Limited Liability Partnership, or Private Limited Company, this step ensures your business operates legally and smoothly. Registering your business allows you to open a current account, comply with tax regulations, and gain access to online payment gateways. Additionally, obtaining a trademark protects your brand from being copied. By completing these registrations, you safeguard your business and enhance its credibility, paving the way for successful operations and customer trust.
