• http://zepo.in/ Zepo

    Hi Sid,

    Answering your concerns one by one.

    1. You can register your business later on, but yes, forming a legal partnership under the same is important. Since there’ll be multiple co-founders, you should lay out the legalities in an agreement.

    2. As for the licenses required for selling online, please find them below:

    1. For starting any business , you need a valid license like License under Shop and Establishment Act (Basic) or Incorporation Certificate for Companies, etc

    2. TAN no. is not mandatory for Sole Proprietors unless your turnover in the previous financial year exceeded 1 crore.

    3. Service Tax Registration is applicable only for Service Providers only. If during a financial year your company crossed 9 lakhs in turnover for service provided, then registration is mandatory within 30 days.
    And Service Tax is to be paid on the amount exceeding 10 lakhs. This exemption limit of Rs 10 Lakhs applies only for the first year and from second year onwards service tax has to be paid on all amount received towards taxable services

    4. VAT is mandatory when the gross turnover exceeds 5 lakhs.

    5. Other licenses required for Proprietorship are Profession Tax or any business specific licenses (Say if Food industry then, License under FSSA). As such for general business only these are the required.​

  • guruprasad

    Let’s say I’m starting an online business for Rs.100000 and selling it for 10cr. What is the tax implication for this transaction. Is there any way I could avoid tax on selling out my business.

    • http://zepo.in/ Zepo

      Hi Guruprasad,

      Not really sure of the tax implications of selling off a business. Would suggest you get in touch with a CA to know the exact legalities of such a transaction and how to avoid tax on the same.

  • http://zepo.in/ Zepo

    Hi Sruthi,

    A brand name and a subsidiary company are two different things. Let me take an example:

    Reliance industries is the parent company and reliance petrochemical is a subsidiary company. Both companies are registered and have different MOA and AOA. A major chunk of the reliance petrochemical’s share capital shall be held by reliance industries. The parent company can recommend directors to the subsidiary company’s board of directors. There may actually be common directors as well. However, they are completely different entities and their assets and liabilities are separate. Since they are different entities they will require separate licences as they are viewed separately in the eyes of the law.

    A brand works in a different way. A brand is part of the company itself. TATA motors has various brands under it – nano, vista etc. In this regard TATA motors is a registered company and there is no need to register these brands separately as a different company (Trademark registration of brands is advised but not compulsory). When TATA launches a new brand, like Zest, they can sell it using the same licences and registration that they have. This means that you would not have to go through a lengthy process of incorporating a new company. However, since you are starting a new type of business which is not related to your current venture you will have to amend the MOA and AOA of your company slightly to allow these new products. This can be done easily by a CA or a Lawyer. I am guessing that you are a family owned business and all directors are relatives, this makes it easy to amend the aforesaid documents as you will need the consent of the majority of members to amend the AOA and MOA. If TATA motors suddenly starts making biscuits it would also have to amend its MOA and AOA.

    For the Payment Gateway you can use the registration of your existing company. If you want to keep the business dealings separate the easiest way to do so would be to start another current account so that there is no mixing of funds. This is just advised and not a necessity. You can get the PG by using the same documents and current account that your father’s company currently has.

    Hope this is helpful.

  • http://zepo.in/ Zepo

    Hi Ankit,

    Apologies for the late reply on the previous post. We were trying to find if we had such detailed knowledge towards the questions you asked. Sadly, we don’t. And instead of misleading you, we suggest you get in touch with a lawyer. Answering the above questions,

    1. We suggest you purchase them on tax invoice, as that’ll come in beneficial when you file for returns.

    2. In such a scenario, how about incorporating a flat shipping cost in the MRP of your products, so that you don’t end up paying for it from your own pocket.

    Hope this agrees with you.

  • http://zepo.in/ Zepo

    Hi Srinivas,

    Thanks for your generous appreciation. We’d try to do complete justice to the questions put forward:

    1. A sole prop. and a pvt. ltd. both have their pros and cons. Where, a sole prop. is a cheap and fast way to register a company, a pvt. ltd. is slightly expensive and with more regulations involved. And we suggest you listing down the pros and cons for each and make a known decision. Found someone on Quora, facing a similar dilemma. Maybe this’ll help you:
    http://www.quora.com/What-is-difference-between-Proprietorship-and-Pvt-Ltd-and-how-quickly-can-we-register-a-single-Proprietorship-company

    2. We don’t have extensive knowledge about the registrations required by a Pvt. Ltd. but as for Sole Prop., we are listing it below.

    2A.. For starting any business , you need a valid license like License under Shop and Establishment Act (Basic) or Incorporation Certificate for Companies, etc

    2B. TAN no. is not mandatory for Sole Proprietors unless your turnover in the previous financial year exceeded 1 crore.

    2C. Service Tax Registration is applicable only for Service Providers only. If during a financial year your company crossed 9 lakhs in turnover for service provided, then registration is mandatory within 30 days.
    And Service Tax is to be paid on the amount exceeding 10 lakhs. This exemption limit of Rs 10 Lakhs applies only for the first year and from second year onwards service tax has to be paid on all amount received towards taxable services

    2D. VAT is mandatory when the gross turnover exceeds 5 lakhs.

    2E. IEC is mandatory if you are shipping internationally. And for which, the pre-requisite is a registered firm.

    3. A physical shop neither is a business registration mandatory for getting a payment gateway. PayU Money is a payment gateway specifically for individuals and non-registered businesses. You can read more about it here: http://www.zepo.in/blog/2013/02/04/ecommerce-websites-payu-money-payment-gateway-for-indivi/

    We’ve passed on your request to the our business development team and someone will get in touch with you shortly. Do let us know if there is something else that we can help you with.

  • http://zepo.in/ Zepo

    Hi Ankit,

    Thanks for dropping by. However, we’d like to confess that we don’t possess the complete expertise to be answering these questions. And in the event, we do mislead you, we’d suggest you get in touch with a lawyer who’d be better equipped to help you along.

  • http://zepo.in/ Zepo

    Hi Rick,

    Thanks for writing in to Zepo. Please find below our answers for the same.

    1. All marketplaces have different requirements for creating seller accounts. And yes, most of them require you to be registered businesses for multiple reasons.

    For eBay: You can sell sell as an Individual or a Business Account on eBay.

    For Amazon India: You can sell on Amazon only if you are selling branded products i.e if you have ISIN number provided by Amazon. For example, if you are selling Nokia Phone, then Amazon has provided a ISIN number to the phone. You would need to get this ISIN number from Amazon.

    For Shopclues: You can sell on Shopclues only if you are a registered business. To begin registrations, please go to ShopClues and complete registration as a seller. There are no listing charges.

    Likewise, you’ll have to get in touch with all marketplaces and find out more about their seller registration process.

    2. To get your business registered, we suggest you get in touch with a lawyer, to guide you through the process. Process of Sole Prop. is mentioned above. For other registrations, you’ll need to get in touch with a lawyer specializing in company registrations.

    3. If you are planning to open an online store with Zepo, invoice is generated automatically on the dashboard for every order recieved and shipped. And you can download the same.

    4. Tax returns will have to be filed personally or via a CA. But the filing of returns will vary for every company registration. Example, for a sole prop., returns can be filed within personal returns. However, for a pvt. ltd. you’ll need to file tax returns separately.

    Hope this helps. If you’d like more detailed answers, please feel free to write back to us.

  • http://zepo.in/ Zepo

    Hi Rick,

    You will need to head to your nearest municipal corporation office and ask them for the sole proprietorship registration form.

    Also, Registration of Proprietary businesses is not compulsory in general in Delhi. But if you do want to go ahead, you will need to register with the Registrar of Firms, Delhi. However, you are are required to seek a trade licence from MCD to open a shop/place of work for your business.

    While registration of Firm would require one time fee for registration, the trade licence from MCD require renewal fee periodically. Additionally, sales tax registration may also be required for your firm.

    Hope this helps.

  • http://zepo.in/ Zepo

    Hi Srinivas,

    You don’t need registrations for starting a business out of your home. However, we do suggest you get a license under Shops and Establishment Act. As for taxation, you will need to keep in mind a couple of things:

    1. TAN no. is not mandatory for Sole Proprietors unless your turnover in the previous financial year exceeded 1 crore.

    2. Service Tax Registration is applicable only for Service Providers only. If during a financial year your company crossed 9 lakhs in turnover for service provided, then registration is mandatory within 30 days.
    And Service Tax is to be paid on the amount exceeding 10 lakhs. This exemption limit of Rs 10 Lakhs applies only for the first year and from second year onwards service tax has to be paid on all amount received towards taxable services

    3. VAT is mandatory when the gross turnover exceeds 5 lakhs.

    4. Other licenses required for Proprietorship are Profession Tax or any business specific licenses (Say if Food industry then, License under FSSA).

    As such for general business only these are the required.​ Hope this helps.

  • http://zepo.in/ Zepo

    Hey Vaibhav,

    Glad to know you’re planning to give Zepo a shot for your online store. We’d be glad to have you onboard.

    Answering your questions one by one:

    1. No license is needed to sell food products online in India.

    2. If you are looking to sell pickles abroad, you will need an Import-Export Code for the same. You can read about getting one, here: http://www.zepo.in/blog/2013/11/07/sell-international-how-to-obtain-an-import-export-code-iec-at-zep/

    3. A sole proprietorship is enough to start an online store with Zepo.

    Hope this helps. Let us know if there is anything more we can help you with.

  • http://zepo.in/ Zepo

    Hi Lisa,

    Thank you for the appreciation. We try to do our best with the replies.

    Onto answering your questions one by one:

    1. You can accept online payments even without a registered company. PayU Money is a payment gateway essentially for individual sellers and unregistered businesses. You can read more about them here: http://www.zepo.in/blog/2012/09/14/registering-an-e-commerce-business-in-india-sole-proprie/

    2. No, a sole proprietorsip cannot be transferred by a name change. In the scenario that you have to transfer the sole proprietorship, you will have to start one in your name and then the brand be transferred to you. You can read more about it here: http://yourbusiness.azcentral.com/can-sole-proprietorship-passed-on-1298.html

    3. Not quite aware of the pre-requisites in detail, except the ones already covered in the post. We suggest you reach out a lawyer who’ll be able to better guide you through this.

    4. Sole proprietorship is the cheapest business registration. However, we are unaware of the costs involved in an LLC formation.

    Hope the answers address your concerns well. Please do write in to us if there is anything more you’d like to know.

  • http://zepo.in/ Zepo

    Hi Jai,

    Thanks for writing in to us. Answering your questions one by one:

    1. Yes, you can very much register your business on a rented apartment. Although, you should have a proper legal rent agreement for the proprietorship to be drawn on that address.

    2. You don’t need to register for VAT right away. VAT is mandatory when the gross turnover exceeds 5 lakhs.

    3. The taxes field in Zepo is not a mandatory field. So you can skip it for now.

    4. As of now, only PayU Money is offering a payment gateway for businesses without registration and for individuals.

    Hope this answers your concerns satisfactorily. Please do let us know if there is anything more we can help you with.

  • http://zepo.in/ Zepo

    Hi Jenny,

    Some marketplaces require you to be registered businesses while others allows individual sellers to do the same.

    1. Amazon: You can sell on Amazon only if you are selling branded products i.e if you have ISIN number provided by Amazon. For example, if you are selling Nokia Phone, then Amazon has provided a ISIN number to the phone. You would need to get this ISIN number from Amazon.

    2. eBay: You can sell sell as an Individual or a Business Account on eBay.

    3. ShopClues: You can sell on Shopclues only if you are a registered business.

    Below are the business registration documents that are required for the above marketplaces.

    Please keep ready scanned images of all of the following:

    – Certificate of Incorporation
    – Cancelled Cheque Leaf of your companies Bank Account
    – Company PAN card
    – Address Proof (Phone Bill, Electricity Bill or Rent Agreement)
    – VAT Registration Certificate
    – Company Letter Head (Plain)

    Since you are looking to sell at online marketplaces, why don’t you start an online store for your brand too? We may have something that interests you. :) Do have a look at this link, if we caught your curiosity: http://www.zepo.in/blog/2014/07/09/sell-on-multiple-online-marketplaces-from-a-single-dashboard-with-zepo/

  • http://zepo.in/ Zepo

    Hi Nazim,

    Answering your questions, one by one, below:

    1. So, do I need any license to sell services in U.S? –
    Ans: It would depend on the type of content you are selling, if its your proprietory content than you need not. However we suggest you to please consult your CA regarding the same.

    2. Is physical address required on the website or the electronic invoicing?
    Ans: Yes, physical address needs to be mentioned on the website for electronic invoicing

    3. Do I still need to register as a Sole Proprietary, if am using Paypal as my payment processor?
    You can register as an Individual or as a Sole proprietor / Pvt Ltd company to use PayPal.
    It’s advisable to get the account under company name.

    4. To sell in overseas, do my website name or logo needs to be registered in India or U.S?
    Ans: Not needed. Only company needs to be registered. Website or logo need not be registered.
    However you can do the registration to avoid the counterfeit / duplicate selling of your brand name.

    5. Is it mandatory to have a local office in U.S to sell digital products there?
    Ans: Not required. However if you need the local tax benefits than you have to register.

    6. Can I accept payments processed from Paypal without a Current Bank account?
    Ans: Yes, you can accept the payments from Paypal without current bank account.

    Hope this helps. Do let us know if we can help you with something more.

  • PS Srinidhi

    Hi zeppo team. I found this topic useful now I have a query. I am planning to sell mobiles and accessories through eBay . in so do I need to have business license in this case & cst&vat no?? I hope you can assist me. My email address is :srrinidhi0.0@gmail.com

    • http://zepo.in/ Zepo

      Hi PS,

      Since you are going to be selling electronics online, we’d advice you to get a business registration for yourself.

      Secondly, VAT/CST is mandatory when the gross turnover exceeds 5 lakhs. So you can plan on getting a VAT number for your business accordingly.

      Hope this helps.

  • http://zepo.in/ Zepo

    Hi Anupam,

    As requested, we have addressed your queries on email. Please do have a look. And do let us know if there is anything more we can help you with.

  • http://zepo.in/ Zepo

    Hi Imran,

    Have sent you the same. Please have a look at it.

  • http://zepo.in/ Zepo

    Hi Sheriff,

    The PG stands for Payment Gateway.

  • http://zepo.in/ Zepo

    Hi Sam,

    Could you help us with what agreement are you looking at? Logistics or for payment gateways?

    Meanwhile, if you’ve any more concerns, please free to call us on 922 358 3358.

  • http://zepo.in/ Zepo

    Hi Maaz,

    Income Tax needs to be filed for every single penny that finds it’s way into your account. Which would mean you’ll have to pay IT on the the complete 5 crore that may come into your account.

    However, we suggest you get in touch with a CA who can help better help you route this money so as to minimize your tax implications.

  • http://zepo.in/ Zepo

    Hi Maaz,

    It’s not too much of an effort replying to all questions being asked. People come in looking for solutions and if we have the answers, why not? :)

    Answering your questions one by one:

    Payment gateways are provided for the direct services. In this case he is providing indirect service to the customer. But in your case, you will be taking the money from the customer and then forwarding it to the client after deducting the commission.

    So it looks like its a marketplace model for which payment gateway cannot be provided. Also, we’d be better able to understand your concerns, if you knew a little more about your business.

    Regarding the documents needed to start off:

    You would be required to provide company address for which you’ll need to have an office. The office can be at your home as well but the company name should be there.

    Shops & Establishments certificate is given by the local municipal corporation for the offices which are located in the commercial premises.
    If you are not having a shop, then it would be difficult for you to obtain the Shops & Establishment certificate.

    Alternatively you can try obtaining the following documents VAT, Service tax no or Labour certificate which will work in place of govt issued certificate.

    Hope this helps. If you’d like to know you can also reach us at 922 358 3358 and we can help you further.

  • http://zepo.in/ Zepo

    Hi Rajnish,

    You don’t need any special registrations for starting an online store in India.

    For starters, you may want a company registration if you are looking at integrating a payment gateway on your store. There is an alternative payment gateway option available too, called PayU Money, which is specially for individuals and non-registered businesses.

    Apart from this, we don’t think you’d be needing any more licenses upfront.

    As for the legal procedure for applying for a sole prop. , you’ll need to head to your local municipal office and they’ll guide you accordingly. Every state follows a different process for the same.

  • Arvind

    Can you please send me the sample vendor agreement to arvindfeb23@gmail.com.Thanks in Advance.

    • http://zepo.in/ Zepo

      Hi Arvind,

      We’ve sent you the same, please do have a look at it.

  • Arvind

    Intrested in online ecommerce business. Can you please send me the sample vendor agreement for me to decide and move further. Thanks.

    • http://zepo.in/ Zepo

      Hi Arvind,

      We’ve sent the same to you. Please do have a look at it.

  • http://zepo.in/ Zepo

    Hi there,

    You will need to head to your nearest municipal corporation office and ask them for the sole proprietorship registration form.

    Also, Registration of Proprietary businesses is not compulsory in general in Delhi. But if you do want to go ahead, you will need to register with the Registrar of Firms, Delhi. However, you are are required to seek a trade licence from MCD to open a shop/place of work for your business.

    While registration of Firm would require one time fee for registration, the trade licence from MCD require renewal fee periodically. Additionally, sales tax registration may also be required for your firm.

    Hope this helps.

  • http://zepo.in/ Zepo

    Hi there,

    1. If you are planning to apply for a payment gateway, you will need to register your company. Or else, if you would like to wait for the company registration, you can apply for the PayU Money PG: http://www.zepo.in/blog/2013/02/04/ecommerce-websites-payu-money-payment-gateway-for-indivi/

    2. For starting any business , you need a valid license like License under Shop and Establishment Act (Basic) or Incorporation Certificate for Companies, etc

    3. TAN no. is not mandatory for Sole Proprietors unless your turnover in the previous financial year exceeded 1 crore.

    4. Service Tax Registration is applicable only for Service Providers only. If during a financial year your company crossed 9 lakhs in turnover for service provided, then registration is mandatory within 30 days.
    And Service Tax is to be paid on the amount exceeding 10 lakhs. This exemption limit of Rs 10 Lakhs applies only for the first year and from second year onwards service tax has to be paid on all amount received towards taxable services

    5. VAT is mandatory when the gross turnover exceeds 5 lakhs. However for imports registration is mandatory when it exceeds 1 lakhs. VAT has to be charges on the imported products as well as per the VAT schedule.

    Hope this satisfies your concerns.

  • http://zepo.in/ Zepo

    Hi DK,

    Yes, IEC is mandatory if you are shipping internationally. And for which, the pre-requisite is a registered firm.

    VAT is mandatory for imports registration is when it exceeds 1 lakhs. VAT has to be charges on the imported products as well as per the VAT schedule.

    Yes, you can use your home address for sole proprietorship registration.

  • http://zepo.in/ Zepo

    Hi Charan,

    You don’t need to apply for any taxation laws just yet. However, if you want a payment gateway, you will need to get your business registered as a sole proprietor and get the incorporation certificate for the PG process.

    And the business registration will need to be done immediately before you even apply for a payment gateway.

    Hope this helps.

  • http://zepo.in/ Zepo

    Hi Vishnu,

    You don’t any special license to sell online. You can start your business as a sole proprietorship and that registration is applicable pan india.

    Apart from this, there are different licenses that come into picture along the way. Listing them below:

    1. TAN no. is not mandatory for Sole Proprietors unless your turnover in the previous financial year exceeded 1 crore.

    2. Service Tax Registration is applicable only for Service Providers only. If during a financial year your company crossed 9 lakhs in turnover for service provided, then registration is mandatory within 30 days.
    And Service Tax is to be paid on the amount exceeding 10 lakhs. This exemption limit of Rs 10 Lakhs applies only for the first year and from second year onwards service tax has to be paid on all amount received towards taxable services

    3. VAT is mandatory when the gross turnover exceeds 5 lakhs. However for imports registration is mandatory when it exceeds 1 lakhs. VAT has to be charges on the imported products as well as per the VAT schedule.

    Hope this helps you.

  • http://zepo.in/ Zepo

    Hi Kiran,

    We are not really sure about tax slabs, but we’d do our best to pass on the taxation information we do possess.

    1. For starting any business , you need a valid license like License under Shop and Establishment Act (Basic) or Incorporation Certificate for Companies, etc

    2. TAN no. is not mandatory for Sole Proprietors unless your turnover in the previous financial year exceeded 1 crore.

    3. Service Tax Registration is applicable only for Service Providers only. If during a financial year your company crossed 9 lakhs in turnover for service provided, then registration is mandatory within 30 days.
    And Service Tax is to be paid on the amount exceeding 10 lakhs. This exemption limit of Rs 10 Lakhs applies only for the first year and from second year onwards service tax has to be paid on all amount received towards taxable services

    4. VAT is mandatory when the gross turnover exceeds 5 lakhs. However for imports registration is mandatory when it exceeds 1 lakhs. VAT has to be charges on the imported products as well as per the VAT schedule.

    5. Other licenses required for Proprietorship are Profession Tax or any business specific licenses (Say if Food industry then, License under FSSA). As such for general business only these are the required.​

    6. IEC is mandatory if you are shipping internationally. And for which, the pre-requisite is a registered firm.

    Hope this helps.

  • http://zepo.in/ Zepo

    Hi Kiran,

    VAT is mandatory when the gross turnover exceeds 5 lakhs. However for imports registration is mandatory when it exceeds 1 lakhs. VAT has to be charges on the imported products as well as per the VAT schedule.

    If your annual turnover is less than 5 lakhs, you need be worrying about VAT just yet.

  • http://zepo.in/ Zepo

    Hi Tridip,

    You can start without a license for now, if you’re starting from home..

  • http://zepo.in/ Zepo

    Hi Tridip,

    You can start off now without any particular licenses. However, when your business starts to grow you’ll need to get your hands on licenses like VAT and Shops and Establishments, etc.

  • http://zepo.in/ Zepo

    Hi Prateek,

    Thanks for the clarification. In such a scenario, a Shops and Establishment is not needed.

  • http://zepo.in/ Zepo

    Hi Raju,

    Apologies for a delayed response. We were trying to figure out within the team before giving you a definite response.

    Although you’ll be selling gift baskets, you will essentially be selling products bundled together. In which case, VAT/CST will be applicable and not Service Tax.

    As for VAT, VAT is mandatory when the gross turnover exceeds 5 lakhs. However for imports registration is mandatory when it exceeds 1 lakhs. VAT has to be charges on the imported products as well as per the VAT schedule.

    Hope this clears some of your concerns.

  • http://zepo.in/ Zepo

    Hi Varun,

    Answering your questions one by one:

    1. Business trademark is not an essential element of starting a company. The trademark can be done down the line, when your brand is a lot bigger and protecting the brand name from competitors poaching the same becomes a must.

    2. For starting any business , you need a valid license like License under Shop and Establishment Act (Basic) or Incorporation Certificate for Companies, etc

    3. Company registration is a must for taxation purposes. TAN no. is not mandatory for Sole Proprietors unless your turnover in the previous financial year exceeded 1 crore.

    4. Service Tax Registration is applicable only for Service Providers only. If during a financial year your company crossed 9 lakhs in turnover for service provided, then registration is mandatory within 30 days.
    And Service Tax is to be paid on the amount exceeding 10 lakhs. This exemption limit of Rs 10 Lakhs applies only for the first year and from second year onwards service tax has to be paid on all amount received towards taxable services

    5. VAT is mandatory when the gross turnover exceeds 5 lakhs. However for imports registration is mandatory when it exceeds 1 lakhs. VAT has to be charges on the imported products as well as per the VAT schedule.

    6. A company registered, the registration is valid pan india. You need not register it again.

    Hope this helps.

  • Balaji

    Hi,
    Great Post.
    I have a doubt, I wanted to start an Export business in Bangalore as a sole proprietor.
    i have decided a name for my company, before getting IEC number do i need to register the name of the company, so that no one else would use the same name in future. If yes can you please guide me where.

    Is it ok if i just decide upon a company name, open current account & apply for IEC code & proceed without registering the company name.

    • http://zepo.in/ Zepo

      Hi Balaji,

      Company registration and trademark are two different things. What you are essentially wanting to do is trademark your brand name so that noone else uses that name as their own.

      A company registration doesn’t trademark your brand name, which means anyone else can still use that name as their own.

      For an IEC Code, a company registration is mandatory, and not a trademark. You can apply for a trademark a couple of months down the line, when your brand is bigger and you have more cash at your disposal.

      Hope this helps.

  • http://zepo.in/ Zepo

    Hi Prateek,

    Once a company is registered, the registration is applicable pan India. You won’t have to register a second time in Delhi.

    • Prateek Prakash

      Thank you for the prompt reply. But I have another question in mind. As I want to operate from Delhi, so I do I need to register my workplace in the local authorities of Delhi or not??

      • http://zepo.in/ Zepo

        Hi Prateek,

        If you are going to be opening up a retail space or any other offline space to conduct business, you will need a valid license under Shops and Establishment Act (Basic), under Delhi.

        Hope this helps.

  • http://zepo.in/ Zepo

    Hi Rahil,

    That’s great to hear. Please feel free to tell us if there is anything more we can help you with.

  • http://zepo.in/ Zepo

    Hi there,

    The migration is smooth and there is no need to scratch from the beginning. Although there are a couple of conditions that need to be fulfilled before proceeding further. You can read more about this on the below links.

    1. http://yourstory.com/2012/07/conversion-of-a-sole-proprietorship-concern-to-a-company-legal-talk/
    2. http://vakilsearch.com/conversion-of-proprietorship-into-company

    Hope this helps.

  • http://zepo.in/ Zepo

    Hi Rajiv,

    Sole proprietorship is a form of company registration like a public limited company or a private limited company. Under a sole prop., you alone are the sole stakeholder of the company and you personally have to bear all loses, if there are any. Sole prop. is the cheapest and easiest form of company registration.

    However, trademarking is for a brand name and not a company. Have you noticed a TM written next to big brands like Coca Cola or Pepsi. That is a registered trademark. A trademark is standalone from a company registration. And is usually done to protect a brand name from being copied by anyone else.

    Hope this helps you proceed further.

  • http://zepo.in/ Zepo

    Hi Balaji,

    Unfortunately, we don’t have anything specific to states. Apologies for the same. But our other readers may have something. Opening your comment for further discussion.

  • http://zepo.in/ Zepo

    Hi Rajiv,

    You just need to register your company when registering an ecommerce business. You don’t need to register your website while doing the same.

    You can go in for a payment gateway even if you haven’t registered your company. PayU Money is a payment gateway essentially for individuals and non-registered businesses. You can read more about it here: http://www.zepo.in/blog/2013/02/04/ecommerce-websites-payu-money-payment-gateway-for-indivi/

    Hope this helps.

  • Rohit

    This article has presented a very complex information in a very simple manner. Thanks a lot!!

    • http://zepo.in/ Zepo

      Hey Rohit,

      Glad to be of help. Do keep dropping by.

      • Rohit

        Hi, Could you please tell if a sole proprietor can also apply for transactional SMS gateways? and are they supposed to pay security deposit?

        • http://zepo.in/ Zepo

          Hi Rohit,

          Don’t have much experience in the domain, but yes, you should be able for SMS gateways.

  • Ajay Varma

    Thanks a ton for sharing so much of information.You Guys are Awesome.!! :)

    • http://zepo.in/ Zepo

      Glad to be of help Ajay! :D

  • Anil

    I want to start e commerce busines

    • http://zepo.in/ Zepo

      Hi Anil,

      We would love to help you with the same. We are passing on your query to our BD team, who will get in touch with you shortly.

  • http://zepo.in/ Zepo

    Hi Sunny,

    You can start a free trial online store on Zepo :: http://www.zepo.in/. After you upgrade to a plan, we will initiate the process of getting you a payment gateway for your online store. This payment gateway is free with Zepo. And you can use to payment gateway to accept online payments.

    As soon as you register for a trial store on Zepo, our team will be in touch with you over email and call. Please feel free to ask them your questions and concerns. And they will guide you along on the complete setup.

  • http://zepo.in/ Zepo

    Hi Abhiroy,

    Have sent you the same. Please have a look.

  • http://zepo.in/ Zepo

    Hi Chindambaram,

    An honest disclosure – we are not a legal firm and nor are we very well versed in legal jargon. we can give you an understanding on and of starting a business and what licenses will be needed. But if you’d like like with the same, we suggest you get in touch with a lawyer.

    Having said that, please feel free to ask us what’s on your mind. We’ll do our best to help you.

  • http://zepo.in/ Zepo

    Hi Charu,

    Have sent you the same. Please have a look at it.

    • Punit thanki

      Hii
      Please send me the vendor agreement on puneetthanki@yahoo.com

      Thank you

      • http://zepo.in/ Zepo

        Hi Puneet,

        Have sent you the same. Please do have a look at it.

  • http://zepo.in/ Zepo

    Hi Amitesh,

    Whatever information is what we have is rather basic. If you are looking into starting a company without a partner and would need some solid information, we suggest you get in touch with a lawyer, who’ll be able to give you both sides of the coin in detail.

    However, having said that, here are the licenses we usually suggest getting before starting a sole prop.

    1. For starting any business , you need a valid license like License under Shop and Establishment Act (Basic) or Incorporation Certificate for Companies, etc

    2. TAN no. is not mandatory for Sole Proprietors unless your turnover in the previous financial year exceeded 1 crore.

    3. Service Tax Registration is applicable only for Service Providers only. If during a financial year your company crossed 9 lakhs in turnover for service provided, then registration is mandatory within 30 days.
    And Service Tax is to be paid on the amount exceeding 10 lakhs. This exemption limit of Rs 10 Lakhs applies only for the first year and from second year onwards service tax has to be paid on all amount received towards taxable services

    4. VAT is mandatory when the gross turnover exceeds 5 lakhs. However for imports registration is mandatory when it exceeds 1 lakhs. VAT has to be charges on the imported products as well as per the VAT schedule.

    5. Other licenses required for Proprietorship are Profession Tax or any business specific licenses (Say if Food industry then, License under FSSA). As such for general business only these are the required.​

    6. IEC is mandatory if you are shipping internationally. And for which, the pre-requisite is a registered firm.

    Hope this helps.

  • http://zepo.in/ Zepo

    Hi Jyoti,

    We’ve sent you the sample vendor agreement on mail. Also, connecting you with one of our team members for your other query.

    • Arvind

      Can you please send me the sample vendor agreement for me to decide and move further. Thanks. Arvind

      • http://zepo.in/ Zepo

        Hi Arvind,

        Have sent

      • http://zepo.in/ Zepo

        Hi Arvind,

        Have sent you the same on arvindfeb23@gmail.com. Do have a look.

  • http://zepo.in/ Zepo

    Hi Kamran,

    We are really sure what registrations and licenses are required for digital services being sold online. Which is why we suggest you getting in touch with a lawyer to better understand the legality of such a business. And taking steps likewise.

    This is not essentially our domain which is why we wouldn’t like to provide you with the wrong information. Hope you understand.

    • http://www1.smartflix.net/ Kamran Abdul Aziz

      Ooops Okay, No issues!
      I’ll get in touch with a Lawyer soon!

  • ismail

    i am planning to start an online grocery store.can u outline the list of the license required .and how to go about each of them

    • http://zepo.in/ Zepo

      Hi Ismail,

      We are listing below the licenses required in general for starting an online business.

      1. For starting any business , you need a valid license like License under Shop and Establishment Act (Basic) or Incorporation Certificate for Companies, etc

      2. TAN no. is not mandatory for Sole Proprietors unless your turnover in the previous financial year exceeded 1 crore.

      3. Service Tax Registration is applicable only for Service Providers only. If during a financial year your company crossed 9 lakhs in turnover for service provided, then registration is mandatory within 30 days.
      And Service Tax is to be paid on the amount exceeding 10 lakhs. This exemption limit of Rs 10 Lakhs applies only for the first year and from second year onwards service tax has to be paid on all amount received towards taxable services

      4. VAT is mandatory when the gross turnover exceeds 5 lakhs. However for imports registration is mandatory when it exceeds 1 lakhs. VAT has to be charges on the imported products as well as per the VAT schedule.

      5. Other licenses required for Proprietorship are Profession Tax or any business specific licenses (Say if Food industry then, License under FSSA). As such for general business only these are the required.​

      Hope this helps.

  • Rajiv

    Hello Zepo team ,

    Guys what is the cost estimate to start a Company Registration in bangalore

    what is the process which needs to be followed ..

    i would like to register my company under the shops and establishement

    And do i need import export licence ..

    if i am selling in my website

    Pls guide me on this thank You ….

    • http://zepo.in/ Zepo

      Hi Rajiv,

      1. For starting any business , you need a valid license like License under Shop and Establishment Act (Basic) or Incorporation Certificate for Companies, etc

      2. TAN no. is not mandatory for Sole Proprietors unless your turnover in the previous financial year exceeded 1 crore.

      3. Service Tax Registration is applicable only for Service Providers only. If during a financial year your company crossed 9 lakhs in turnover for service provided, then registration is mandatory within 30 days.
      And Service Tax is to be paid on the amount exceeding 10 lakhs. This exemption limit of Rs 10 Lakhs applies only for the first year and from second year onwards service tax has to be paid on all amount received towards taxable services

      4. VAT is mandatory when the gross turnover exceeds 5 lakhs. However for imports registration is mandatory when it exceeds 1 lakhs. VAT has to be charges on the imported products as well as per the VAT schedule.

      5. Other licenses required for Proprietorship are Profession Tax or any business specific licenses (Say if Food industry then, License under FSSA). As such for general business only these are the required.​

      Hope this helps.

  • kamal

    Hello,
    I need some suggestion..

    Currently i doing business like coaching classes and making the academic project for student.

    Then should i register as the sole proprietor?
    Please give some suggestion on my mail:
    kctech4@gmail.com

    • http://zepo.in/ Zepo

      Hi Kamal,

      You can register as a sole prop. but your business registrations will differ since your are offering services.

      1. You need a Valid License Like license under shop and Establishment Act (Basic), Incorporation Certificate for Companies

      2. TAN no. is not mandatory for Sole Proprietors unless their turnover in previousfinancial has exceeded 1 crore

      3 Service Tax registration is applicable for Service Providers only. If during a financial year he has crossed 9 Lakhs of turnover for service provided, then he has to take registration within 30 days and start paying Service Tax on amount exceeding 10 Lakhs. This exemption limit of Rs 10 Lakhs applies only for the first year and from second year onwards service tax has to be paid on all amount received towards taxable services

      4. VAT is mandatory when the Gross Turnover Exceed 5 Lakhs, however for Imports registration is mandatory when it exceeds 1 Lakhs.

      5. Other Licenses required for Proprietorship are Profession Tax or any business specific licenses (Say if Food industry then, License under FSSA). As such for general business only these are the requirement.

      Hope this helps.

  • Rajiv

    Hi Zepo ,

    Great Post great information
    We are a startup Comming up with a concept on selling branded Shirts , Tshirts , Troushers for discounted Price … just as all the online shopping cart i am focusing on selling products from 400 to 2000 rs on my website …

    i am Looking For manifacturers who deal with Branded Prodcuts and can Display there products on my website

    Pls help me what is the process…

    • http://zepo.in/ Zepo

      Hi Rajiv,

      You are basically a manufacturer who wants to act as a drop-shipper for sellers online.

      You can go ahead and register your company as a sole prop. since that is the easiest and cheapest form of registration. Other registrations needed would be as follows:

      1. You need a Valid License like license under shop and Establishment Act (Basic), Incorporation Certificate for Companies.

      2. TAN no. is not mandatory for Sole Proprietors unless their turnover in previous financial has exceeded 1 crore.

      3. Service Tax registration is applicable for Service Providers only. If during a Financial year he has crossed 9 Lakhs of Turnover for Service Provided, then he has to take registration within 30 days and start paying Service Tax on amount exceeding 10 Lakhs. This exemption limit of Rs 10 Lakhs applies only for the first year and from second year onwards service tax has to be paid on all amount received towards taxable services

      4. VAT is mandatory when the Gross Turnover Exceed 5 Lakhs, however for Imports registration is mandatory when it exceeds 1 Lakhs.

      5. Other Licenses required for Proprietorship are Profession Tax or any business specific licenses (Say if Food industry then, License under FSSA). As such for general business only these are the requirement

      Hope this helps.

      • Rajiv

        Hi Zepo..

        No i am not manifacturer ..i deal with manifacturers , wholesalers and sell there products on my site…

        is the process same as well ?

        and one more can i register my company in bangalore and act the office in hyderabad…

        • http://zepo.in/ Zepo

          Hey Rajiv,

          You too can register as a sole prop. The company registration i valid pan india, so it should not be a problem.

  • http://zepo.in/ Zepo

    Hi Punit,

    It is not necessary to have a physical office if you are selling online. You will need a physical office if you are applying for a shops and establishment act.

  • http://zepo.in/ Zepo

    Hi Aashish,

    Apologies but we don’t have much information on the procedure of a private limited firm. We advise you get in touch with a lawyer to know more about the same.

  • http://zepo.in/ Zepo

    Hi Ricky,

    One VAT registration would be fine for selling from all states. You can use the same VAT registration across India. It would be advisable to approach a lawyer in Karnataka to know more about the VAT rules in that particular state.

  • Aryan

    Very good article, thank you so much for sharing the information…

    I am importing intimation jewellery from China and selling
    it only through Amazon India. I am currently shipping all the products to
    customers across India from my home. I have applied for VAT number. VAT number
    is applied under my mother’s name as a sole trader and she has no other taxable
    income.

    What are the tax implications of this business?

    • http://zepo.in/ Zepo

      Hi Aryan,

      The registrations will depend on what type of what type of business registration you’d like to go for. If you would like to go in for sole proprietorship, the following pointers should be helpful.

      1. For starting any Business , you need a valid license like license under shop and Establishment Act (Basic), Incorporation Certificate for Companies

      2. TAN no. is not mandatory for Sole Proprietors unless their turnover in previous Financial has exceeded 1 crore. So you don’t need to register for this, just yet.

      3. Service Tax registration is applicable for Service Providers only. If during a Financial year you cross 9 Lakhs of turnover for service provided, then he has to take registration within 30 days and start paying Service Tax on amount exceeding 10 Lakhs. This exemption limit of Rs 10 Lakhs applies only for the first year and from second year onwards service tax has to be paid on all amount received towards taxable services

      4. VAT is mandatory when the Gross Turnover exceeds 5 Lakhs, however for Imports registration is mandatory when it exceeds 1 Lakhs.

      5. Other Licenses required for Proprietorship are Profession Tax or any business specific licenses (Say if Food industry then, License under FSSA). As such for general business only these are the required.​

      Hope this helps.

  • fabby

    hi team, thanks for the information provided.
    I need to know if i am selling my products (in my case its furniture) pan India, can I do it with only shops & establishment act?

  • http://zepo.in/ Zepo

    Hey Atul,

    Since you will be selling products, CST shall be applicable. CST is applicable over an annual turnover of Rs. 5 lacs. However for Imports registration is mandatory when it exceeds 1 Lakhs

  • http://zepo.in/ Zepo

    Hi Sanha,

    You can register your company as a sole prop. That would be the easiest company registration. And based on the documents of the sole prop. you can get yourself a current bank account. Hope this helps.

  • http://zepo.in/ Zepo

    Hi Atul,

    CST is applicable for all products that are shipped across state borders. So it is unavoidable. For getting registered under CST ACT prior registration under VAT is mandatory. The dealers who are registered under VAT can apply for CST registration in form CST A (“Application for CST registration”), which is obtainable from your Tax Office. The form to apply for Registration CST A is also available on the website of the Commercial Tax Department of your state. You must fill in this form and submit it to the Tax Office.

  • http://zepo.in/ Zepo

    Hi Sanha,

    You will need to get in touch with a bank of your choice to open a current bank account. Company registration and other licenses for the business cannot be acquired without a current account. And as far as we know, getting one shouldn’t be too difficult. Do let us know if you run into any difficulties.

  • http://zepo.in/ Zepo

    Hi SNP.

    Answering your questions one by one:

    1. You will need to register your company as you are bound to have tax liabilities like CST/VAT. So you will need to register your company and get the appropriate licenses to run your business.

    2. That is something you’ll need to look into. Information about the same is not available on the net. Even if not, the procedure is not as tedious as registering a Pvt. Ltd. firm.

    3. Will depend on the above answer.

    4. You can go ahead with hiring employees and offering them different positions. Your only limitation is going to be the perks and benefits you can offer to each.
    The business may not be able to attract high-calibre employees whose goals include a share of business ownership. Sharing the benefits of ownership, other than simple profit-sharing, would require a change in the legal form of the business.
    Or some employee benefits, such as owner’s life, disability, and medical insurance premiums, may not be deductible, or may be only partially
    deductible from taxable income.

    Hope this helps.

  • http://zepo.in/ Zepo

    Hi Sunil,

    1. You don’t need to register as a company in order to sell on marketplaces.

    2. However, the above statement changes in case of other influencers.

    A. VAT is mandatory when the Gross Turnover exceeds 5 Lakhs. If you have to apply for VAT, you will need to have a registered business before you do.

    2. Service Tax registration is applicable for Service Providers only. If during a Financial year you cross 9 Lakhs of Turnover for Service Provided, then he has to take registration within 30 days and start paying Service Tax on amount exceeding 10 Lakhs. This exemption limit of Rs 10 Lakhs applies only for the first year and from second year onwards service tax has to be paid on all amount received towards taxable services. Again, for service tax registration, you need to have a registered business.

    In conclusion, you can operate as an unregistered business as long as your annual turnover doesn’t exceed 5 lacs.

    Hope this clarifies your concerns.

  • http://zepo.in/ Zepo

    Hi Kanduri,

    The registrations will depend on what type of what type of business registration you’d like to go for. If you would like to go in for sole proprietorship, the following pointers should be helpful.

    1. For starting any Business , you need a valid license like license under shop and Establishment Act (Basic), Incorporation Certificate for Companies

    2. TAN no. is not mandatory for Sole Proprietors unless their turnover in previous Financial has exceeded 1 crore. So you don’t need to register for this, just yet.

    3. Service Tax registration is applicable for Service Providers only. If during a Financial year you cross 9 Lakhs of turnover for service provided, then he has to take registration within 30 days and start paying Service Tax on amount exceeding 10 Lakhs. This exemption limit of Rs 10 Lakhs applies only for the first year and from second year onwards service tax has to be paid on all amount received towards taxable services

    4. VAT is mandatory when the Gross Turnover exceeds 5 Lakhs, however for Imports registration is mandatory when it exceeds 1 Lakhs.

    5. Other Licenses required for Proprietorship are Profession Tax or any business specific licenses (Say if Food industry then, License under FSSA). As such for general business only these are the require​d.​

  • http://zepo.in/ Zepo

    Hey Vinod,

    Job holders can do so if they are employed by any private company (non governmental). Though some private companies do not allow you to run a business and mention that in their terms of employment. So please do check your terms of employment to rule out any such injecture.

    The Income Tax shall be filed by the sole proprietor and the incomes shall come under different heads, one shall be income from salaries and the other shall be profits and gains from business or profession.

    The service tax will have to be paid only on the services component. For ex: If I am a sole proprietor selling a TV for Rs. 100 and then charging Rs.10 to come install it, then the service tax will only be levied on the Rs.10 and not on the entire Rs. 110. That way the consolidated salary or profit from business won’t be an issue, only the services rendered component of it would be taxed.

    Hope this helps.

  • guptarohan

    Hello
    If I sell goods on Ebay, do I still need to register at nearest Municipality Office?

  • vikram

    Dear Friend,

    If a seller is registered with e-marketplaces model with websites like snapdeal, flipkart, ebay etc then is it mandatory to acquire the CST, we know that VAT is essential and if yes then how the selling would happen as in VAT we need to process the C form in case of B2B transaction but how the selling process would happen in e-tail as we are selling directly to the customer…

  • http://zepo.in/ Zepo

    Hi Pranav,

    1. You’ll need a current account in the name of your firm if you are going to be transacting with your clients. The Savings account will not viable, since you’ll need to show the financials later as part of tax too. So it is advisable that you get a Current A/C.

    2. You can operate your firm as a sole proprietorship for a while, if you are going to be the only person operating. Since it is the easiest and cheapest form of company registration. More details here:
    However, if you do have plans to grow in the future, get more people or even have a partner, you will need to wisely choose what kind of company registration you go in for.

    3. Letterhead and biz cards can still be made without a company registration. However, you will need a company registration to have legal business stamps.

    4. You can’t enter into legal and bidding agreements between 2 businesses without a proper registration. However, the business may choose to enter into an agreement with you as an individual.

    5. The designation will depend on your company registration.

    6. Yes, that’s possible.

    Hope this helps.

  • Waquar Sarwar

    can a sole proprietor open its branch office in other states in india.

    • http://zepo.in/ Zepo

      Hi Waquar,

      You most definitely can. It’s only the registration that is needed to be done in a particular state and then it is applicable pan India. And after that, you can definitely operate in other cities as well.

  • http://zepo.in/ Zepo

    Hi Samuel,

    Answering your queries one by one below:

    1. TAN no. is not mandatory for Sole Proprietors unless their turnover in the previous financial has exceeded 1 crore.

    2. Service Tax registration is applicable for Service Providers only. If during a financial year you cross 9 lakhs of turnover for service provided, then you have to take registration within 30 days and start paying Service Tax on amount exceeding 10 lakhs.
    This exemption limit of Rs 10 lakhs applies only for the first year and from second year onwards service tax has to be paid on all amount received towards taxable services.

    3. VAT is mandatory when the Gross Turnover exceeds 5 Lakhs. However for imports, registration is mandatory when it exceeds 1 lakhs. VAT has to be charged on the imported products as per the VAT Schedule.

    4. Other Licenses required for Proprietorship are Profession Tax or any business specific licenses (Say if Food industry then, License under FSSA). As such for general business only these are the required.

    Hope this helps. Do let us know if you’d like any more info.

  • http://www.amunity.in adarsh

    Hi Team Zepo
    I want to open a sole proprietorship business in Motihari,Biharplease help me for that.

    • http://zepo.in/ Zepo

      Hi Adarsh,

      You will need to go to your nearest municipal corporation office and apply for the same. It’s a rather simple process and inexpensive as well.

  • http://zepo.in/ Zepo

    Hi Neelam,

    1) When you start working as an individual, you don’t need any registrations or permits to function within the country.
    Although, this is applicable till you reach a limit of either 5 lakhs or 10 lakhs of revenue in the first Financial Year. (This will vary from state to state. So we advice you to look into regulations of the state you’re operating out of.)

    2. We don’t have the information about licences you’d need if you wish to partner with International Dealers. Although you will need an IEC code to import or export goods. You can find more information about the same here: http://www.zepo.in/blog/2013/11/07/sell-international-how-to-obtain-an-import-export-code-iec-at-zep/

    Hope this helps.

  • Aboozar Karimi

    Hello, I am starting a Lawn Mowing business ( sole proprietorship) in Chandigarh. please provide me the cost and fees for registration.

  • shailendra

    please suggest me, if i need to register my self-hosted website with Indian gov that offers guitar/ music lessons to paid members.

  • Niky

    Hello. Awesome post. I have an ongoing drop shipping business and a e-commerce website set up. Few Goods are sold in the United States and are drop-shipped by supplier in China. Few custom-made items are made in India and shipped to customers in USA. Can you please guide about the tax implications for such a business? Thank you so much for your time.

    • http://zepo.in/ Zepo

      Hi Niky,

      We’d suggest you get in touch with a lawyer to understand the nitty gritties of such a business. A lawyer will be the best person to help you with what taxes will be applicable.

  • Shubhranshu Shekhar

    Hi,

    I am planning to open an eshopping business. We are two friends. Is it possible to start a proprietory business as partners or may be as two owners? Can you help me out? Please tell me the procedure. It would also be helpful if you could tell me how to go about it in Chennai.

    • http://zepo.in/ Zepo

      Hey Shubhranshu,

      As the name suggests, under a sole prop. company registration only one person can be named as the proprietor of the company. If you are looking at opening a business, naming both of you as partners, you will need to go in for a partnership firm.

      Unfortunately we are not really sure about the procedure for the same. However, a word of advice, you should some legal advice on the same to make sure you have all the nitty-gritties covered.

      Hope this helps. Thanks for stopping by.

  • http://zepo.in/ Zepo

    Hey Rashmi,

    Thanks! Glad it helped. You can register your sole proprietorship firm for Delhi through this link: http://www.labour.delhigovt.nic.in/ser/

    Hope this helps.

  • http://www.techprevue.com/ Vinay Prajapati

    Thanks for informative article. I am planing to setup an ecommerce portal like flipkart or ebay. I want to use payment gateway like ccavenue etc, Is this possible to run such portal as sole proprietorship or I have to setup company? My business area will be all over india. Please clear my doubt.

    • http://zepo.in/ Zepo

      Hi Vinay,

      You can definitely go ahead and setup an e-commerce portal as a sole proprietorship. There are no restrictions whatsoever. It’s the easiest and cheapest form of business registration, and hence most recommended.

  • Aniket Kapoor

    Hi i want to open a publication house on my residential address. can it be done ? what all should i do for that thanks.

    • http://zepo.in/ Zepo

      Hi Aniket,

      You definitely can start a publication house as a sole proprietorship. However, we also do suggest you take a lawyer’s advice to guide you through the legal nuances of such a business registration.

      • Aniket Kapoor

        Thanks

  • ravi teja

    Hi, thanks for info. I hv some doubts. Plz clarify. Am a seller in ebay, tradus etc. I wanna arrange cash on delivery to my buyers. But the courier guys say that cash on delivery is possible only to companies. So i wanna registr my propreitership. How should i do that? I dont have a shop either. I buy goods from wholesalers in my city n sell them online. The courier guys say they need a registered company. But you have stated that, registration is not required for Sole propreitership. Plz explain.

    And if at all there is a process for registration in the municipal corporation, plz explain that as well. Thank you

    • http://zepo.in/ Zepo

      Hi Ravi,

      To run a company as a sole proprietorship, a registration per se is not required. However, since the courier companies are asking for a registered business to extend COD service to you, you can go in for the easiest company registration i.e. sole proprietorship.

      The process for that is simple. You need to go to the nearest municipal corporation in your city and ask for the forms to register as a sole proprietorship. Henceforth processes can be explained by the officer at the municipal office. If you happen to be in Delhi, you can also register your business online.

      Hope this helps.

  • Kazmi

    Hi. Thanks for such useful and nicely Presented Information. I have a question. I want to start an online store using ecommerce platform which comes with integrate payment gateway ( they charge fees for every transaction using payment gateway). Now I want to do business from my home. Do i need to register my business? Thanks.

    • http://zepo.in/ Zepo

      Hi Kazmi,

      Answering your question, yes, you will need to register your business since you want to go in for a payment gateway on your online store.

      However, there is an alternative if you don’t want to rightaway register your business. PayU Paisa is a payment gateway specially for individuals and non-registered businesses. You can find out more about the same here: http://www.zepo.in/blog/2013/02/04/ecommerce-websites-payu-paisa-payment-gateway-for-indivi/

      Also, since you mentioned you wanted to started an online store with an ecommerce platform, do look at Zepo.in (http://www.zepo.in/). We help small businesses and entrepreneur go online and do offer a free payment gateway, with no setup fee and AMC.

      Do let us know if we can help you with anything else.

  • Ani

    Hi, Thanks for the detailed explanation but I still have couple of doubts hoping to get answer from you here.

    I am starting an website to sell some stuffs also opening seller accounts on ebay and amazon. Do I need any license in Bangalore? Do I need any trademark to sell? Cant I just sell goods bought from wholesaler on my website? Kindly help.

    and I know you explained it above but to sell on ebay and amazon do i need license from local government and is it necessary to have a own logo and trademark?

    Sorry for the pain but Thanks a lot for your help.

    • http://zepo.in/ Zepo

      Hi Ani,

      Your questions are a legitimate doubt. To answer your questions one by one:
      1. No, you don’t require any particular license in Bangalore or any other city in India, to sell online.
      2. No, you don’t need a trademark to start selling online.
      3. Yes, you can definitely sell good bought from any wholesaler on your own website.
      4. No, you don’t need any license to sell on ebay or amazon or even your own online store. And it is not necessary to have a logo or trademark either. But a logo serves well if you are trying to establish a brand identity for yourself.

      Hope these answers help. Please feel free to get in touch with us, incase you’d like to know more.

      • Ani

        Thanks so much for clearing the doubt… many people whom I consulted told me that i need to register as proprietor and get the VAT, TIN, Sales tax licenses. I was worried… Thanks so much now I can happily sell on ebay and amazon.. Thanks again.

        • http://zepo.in/ Zepo

          Glad to be of help, Ani. All the best.

    • Tanay

      Hi,

      Actually i want to setup my own retail ecommerce portal. I did lot a research in this field.but have lots of doubts.Initially I m planning to launch store with 500 products.

      Query:
      1.Do i need to register for sole proprietorship at Local Municipal Or may be after 3-4 months after launchin my business.

      2.I am working Professional having PAN No. Can it be same or i have to take other person PAN No.

      3. Since i will deal in grocerry items. Is it required to show TIN No. requires taxes on Bill.

  • Ravi Kant

    Dear blogger,

    You Sort out most of things,but want to ask again one thing i just started an e-commerce website,and i don’t have any registered company ..What will i do,i will treated as illegal.

    • http://zepo.in/ Zepo

      Hi Ravi,

      Even if your online store in not registered, it still won’t be considered as illegal. Company registration is not mandatory, specially in the case of a sole prop. However, if you are looking to have a payment gateway integrated on your online store, you will need to have a business registration.

      • Ravi Kant

        Dear Sir,

        Without payment gateway how i can get money from my customer. I can’t provide COD(cash on delivery) in all over India.I need to implement Payment gateway on my website.

        In this case as per your post, i need to register my business and can’t run as a Sole Proprietorship??? Please tell

  • BHAWNIS

    HELLO SIR I WANT DOING THE ONLINE SHOPPING BUSINESS IN PARTNERSHIP PLEASE TELL ME A TO Z REQUIREMENT FOR STARTING THE BUSSINESS

    • http://zepo.in/ Zepo

      Hi Bhawni,

      Sorry but we don’t have any ready information like this one for a partnership firm. But you can have a look at the following article. This should give you some insight into how to start one: http://business.gov.in/starting_business/partnership.php

  • kartheekb

    Hi. This is a very good article . and also a very indeed for me. I am in confusion between private & Sole proprietorship. Thanks for the author . And Can u plz Send a link or write an article for “how to Find wholesale distributors / drop shippers” for e -commerce business. Simply i am struggling to get products to get started . Like clothing , mobiles & electronics

    • http://zepo.in/ Zepo

      Hi Kartheek,

      Thanks for the appreciation. A word of advice, if you are still confused about what type of business registration to go in for, we suggest a sole proprietorship. Solely because it’s easy and cheaper compared to a pvt. ltd.

      Also, we duly take your suggestion on the article. Although, there is an article that we have written about drop-shipping in India. You can have a look at that too.
      http://www.zepo.in/blog/2011/09/14/can-you-start-your-ecommerce-portal-without-a-single/

  • soumya

    Hi I would like to start a ecommerce website in India in order to sell some jewelry worldwide and my doubt is ,is it necessasary to have a physical address for sole proprietorship as I do not have any shop or is my house address enough to get my website registered.

    • http://zepo.in/ Zepo

      Hi Soumya,

      You can register your business as a sole proprietorship as well as for a shop and establishment act with your house address itself. However, the address proof should be in your name for the same.

      Hope this helps.

  • Nagi

    Hi,
    Can you please clear my doubt regarding this situation:

    For registering company as sole proprietor is it compulsory to get shop registered from municipal corporation? although i will be selling clothing only on online (zepo).

    Registration of shop will help in getting Payment gateway or Current Account?

    Thanks.

  • manaf82

    I want to open two different stores on Zepo dealing with two entirely different categories of products.I do have an unused shop owned by my dad.I just want to use it just for registration purposes.

    Can i use this single shop registration to register for two different online shops???

    I specifically mean for the payment gateway registration purposes?

    • http://zepo.in/ Zepo

      Hey Manaf,

      Yes, the same shop registration can be used to acquire two different payment gateway accounts, to be used to two completely different websites.

  • Santosh Manjrekar

    Hi,
    Can we also register marketplace (e.g. like ebay.in or flipkart.com)under sole proprietorship .

    Regards,
    Santosh M.

    • http://zepo.in/ Zepo

      Hi Santosh,

      Yes, most definitely. You can go ahead and register with these marketplaces as a sole proprietorship, without worry.

  • Pawan

    Hi Team, I need to open a proprietorship firm; nature of the business would be technical consultant & may be Service support (in future); Since I’m working with some IT company so want to open firm in my Mother’s name. i have tried to collect all the information which are required to open sole proprietorship firm but have some questions i hope you can help.
    1, to my knowledge legal rules are different at state level, is there any website link which gives such information.
    2, do i need to hire a CA or advocate to register my firm, or i can do it own my own.
    3, is there any checklist which i can maintain to complete the documentation.

    • http://zepo.in/ Zepo

      Hi Pavan,

      To answer your questions one by one:

      1. Yes, legal rules do differ from state to state, like tax exemptions etc. You will need to find in detail the rules that govern your state of residence or the state you are looking at for your proprietorship registration.

      Certain states in India have the procedure and form for sole prop. or shop and establishment form available on their local municipal website. But unfortunately, there is no consolidated list of all states together. You will need to do a quick Google search for the same.

      2. Hiring a lawyer is advisable, although a sole proprietorship can be handled by your self too.

      3. Sorry, but we don’t have a ready checklist for the list of documentation you may need.

      Hope these answer help. Do let us know if you’d like to know anything more. Happy to help.

  • Venus

    Hi, Thanks for the information. Its really helpful. One quick question, is this procedure same for Pune as well. Where is the register office for Shop Establishment Act in Pune ?? Thanks, Venus

    • http://zepo.in/ Zepo

      Hi Venus,

      Glad you found the article to be of help. Yes, the procedure will be more or less same for Pune city as well. However, we aren’t sure of the registered Shop & Establishments office in Pune. You will need to ask around for the same.

  • Brijesh

    This article is very helpful. I have a few questions please. I am opening an online training platform for animation. It would a sole proprietor firm. Will it come under services tax (as i often heard that ST is applicable if annual income is greater than 9 lakhs). Will i also need TAN as i am not collecting any tax from customers neither i have any employee. Please help me.

    • http://zepo.in/ Zepo

      Hi Brijesh,

      Glad you found the article to be of use. As for your queries, we’d suggest you get in touch with a lawyer to guide you with the taxation that will be applicable for your business. Since you’ll be providing a service, the taxation rules will change.

      If you have any other questions, please feel free to ask. We’d try to do our best to answer the same.

      • Brijesh

        Ok, thanks for paying attention.

  • young_entrepreneur

    hi, the article was quite informative. i just have a small query. i have a small e-commerce site. all of my customers and sellers are exclusively form Europe. I was wondering if it would alright to register my ecommerce site as a cyproit entity?

    • http://zepo.in/ Zepo

      Hi Abhytan,

      Glad you found the article to be of help. However, we wouldn’t be the right people to advice you on this particular legal issue. We strongly recommend you get in touch with a lawyer who can advice you with all pros and cons laid out.

      Thank you for dropping by. Hope to keep seeing you around. And all the very best with your venture.

  • Shilpa Shajan

    Thanks for simplifying the process for me :) Appreciate it :)

    • http://zepo.in/ Zepo

      Glad we did, Shilpa! :)

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