• 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.

  • 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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