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Tanya Rao

Tanya Rao

Curious Growth Hacker @ Zepo. Traveller. Foodie. Cider Lover. Social Media Enthusiast. Audiophile at the Cellular Level. Start-up Kid. Sarcasm is First Language. Madness Personified. Love Mondays.

  • http://zepo.in/ Zepo

    Hi Jacob,

    First of all, hats off to you, to starting-up again. :)

    1. We suggest you go in for a OPC registration for the new venture. It’s easier and much more flexible than a partnership deed.

    2. Since you didn’t get to paying nay taxes for the old venture, you are not liable to pay anything now. It will be as good as starting anew. So you needn’t worry about licenses and taxes from the previous venture. It shouldn’t affect in any way.

    Hope this helps. Thanks for your generous appreciation! The team is grateful. :)

  • http://zepo.in/ Zepo

    Hi Jakob,

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

    1. Yes, you most definitely can register as an OPC. Here’s to get you started: http://www.zepo.in/blog/2014/11/08/a-to-z-about-one-person-company-registration-in-india/

    2. Yes, you most certainly can. You can find out more the OPC here: http://www.mca.gov.in/MinistryV2/OPCfaq.html

    3. We don’t think so you should need a Shops and Establishment act if no sales occur on the premises. However, we suggest you get in touch with a CA, to get a more detailed perspective on the same.

    4. As for taxation and licenses:

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

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

    4.4. 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.

    4.5. 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.

  • http://zepo.in/ Zepo

    Hi Hanshik,

    You most certainly can start your business with a TIN number and may not have to register your business immediately.

  • Han shik

    Hi Team,

    I would like to sell products on snapdeal. They asked Title and TIN. For my startup business, is it OK to register only TIN for now without sole proprietor(OR) OPC. If i see good progress, I would register for remaining.

    In Hyderabad, GHMC is giving Trade License (TIN) for ‘retailer for general goods’. is it applicable for mobile case covers and normal all type of goods which are not restricted as per law.

    Thanks in advance for your help.

    – Hanshik

    • http://zepo.in/ Zepo

      Hi Hanshik,

      In the first case, yes, you most certainly can go ahead and register for your TIN number.

      However, we don’t have much knowledge about the trade license being provided by GHMC.

  • http://zepo.in/ Zepo

    Hi Mahendra,

    This is a kind of business model that we don’t cater to, unfortunately. You can however get in touch with individual web developers to build you a custom website on similar lines.

  • http://zepo.in/ Zepo

    Hi there,

    Yes, it is possible to do so. You are required to fill up form INC-6 to convert from an OPC to a private or public company. You can download the form along with the instructions here: http://www.mca.gov.in/MCA21/dca_html/downloadeforms/Download_eForm_choose.html

  • http://zepo.in/ Zepo

    Hi Raj,

    We don’t have much expertise in starting business as per the marketplace model. But we’ll still make an attempt to answer your questions.

    1. Yes, we do recommend your business as a sole prop. if you are planning to start a service related business.

    2. As far as our knowledge goes, DirecPay does provide payment gateways to service providers. But then again, this is clearly on a case-to-case basis. So you can get in touch with them to know more.

  • http://zepo.in/ Zepo

    Hi Hriday,

    You can try Vakil Search in India. Hopefully they should help you with this. However, we also suggest that instead you get in touch with a CA or a lawyer to personally assist you through the whole process and go ahead filing the paperwork on your behalf.

  • http://zepo.in/ Zepo

    Hi Avanti,

    Please find below our answers. Hope we do justice to your concerns.

    1. There is a better option available for entrepreneurs now, called One Person Registration. You can read more about it here: http://www.zepo.in/blog/2014/11/08/a-to-z-about-one-person-company-registration-in-india/

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

    2.2. 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

    2.3. 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.

    3. Don’t have much expertise on this subject. We suggest you get in touch with a CA or lawyer to know more about the intricasies of such kind of business.

    4. You don’t need to have a payment gateway. A bank transfer is an equal secure option. You may like to look into PayU Money, which is a special payment gateway for individuals, and doesn’t require for companies to be registered. http://www.zepo.in/blog/2013/02/04/ecommerce-websites-payu-money-payment-gateway-for-indivi/

    5. Payment gateways already have an SSL encryption which prevents againt hacking. So you don’t have to worry about it from your end.

    6. You can give PayU a try. http://www.zepo.in/blog/2013/03/21/payu-payment-gateway-free-with-zepo/

    Avanti, we’d be more than glad to help you along. For the same we request, if you could drop us your email id, so that we can get in touch with you. Likewise, you can also reach us at 922 358 3358.

  • http://zepo.in/ Zepo

    Hi Vivek,

    You can know more about the OPC registration here: http://www.zepo.in/blog/2014/11/08/a-to-z-about-one-person-company-registration-in-india/

    You can register your company on your home address too. You don’t need to rent a corporate or office space for the same.

  • http://zepo.in/ Zepo

    Hi Kumar,

    Thanks for the appreciation. Glad we can be of help. :)
    Answering your questions one by one.

    1. Registering may be required to sell on the marketplaces mentioned. However, each marketplace has it’s own process in place. So we suggest you look into their requirements before proceeding.

    2. Licenses mainly depend on the type of products you wish to sell and your annual turnover.

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

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

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

    3. Again, not a necessity, but it may be a pre-requisite to other business licenses.

    Hope this helps.

    • Kumar

      Thanks a lot for the Info…appreciate your help!!

  • Sanjay Sharma

    Team Zepo
    Great work to publish this artical and replying to each n every query.
    Sir I wish to start a academic journals publication form my home. What type of registration is better for me? Should I register the name of my publication under sole properiatorship (shop & establishments)? Maximum work under this i will perform through my online website. I will receive order and supply print journals.
    Please suggest I am a beginner.
    Thanks
    Sanjay Sharma

  • http://zepo.in/ Zepo

    Hi there,

    You are free to start your own web design business as you please. As long as you don’t start a company, until then you can just act as an individual engaging in a profession.

    If you want to start a company and register the company with the MCA, you can go right ahead and do that, along with register a trademark. Although, copyrights will largely depend on the kind of work you’re doing.

    Also, we suggest that you get in touch with either a lawyer or a peer within the industry to help you with this. There are alot of ambiguous questions that can be sorted out better, in person.

  • http://zepo.in/ Zepo

    Hi Shreshti,

    Unfortunately there is no way around this. Karnataka VAT registration requires that you operate out off a commercial space and therefore you will have no other option.

  • http://zepo.in/ Zepo

    Hi Maharshi,

    It’s a good idea to start with online marketplaces before starting your own online store. It’ll help you test the waters before you start investing bigger money.

    So every marketplace will have it’s own set of regulations for you to start selling with them. Listing down a couple of marketplace requirements below. However, we do suggest that you also get in touch with your preferred marketplaces personally.

    eBay: You can sell sell as an Individual or a Business Account on eBay. To begin, please go to ebay.in and register as a seller. Then register for Paisa Pay, which is their payment gateway.

    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.

    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.

  • http://zepo.in/ Zepo

    Hi Sarvesh,

    From what we understand you are trying to start an affiliate ad network. Apologies, but we don’t have much expertise is helping start such online businesses. We suggest you consult people already in the business and founders of companies that have started such ad networks. They should be your best resource.

  • http://zepo.in/ Zepo

    Hi Vineet,

    As far as we know, Shops and Establishment Act is not a mandatory license for Sole Prop. However, we suggest you to find out from your local municipal corporation office for further details.

  • http://zepo.in/ Zepo

    Hi Pratik,

    You need to be an authorized retailer for brands to be selling those shoes as a retailer. But we have rather limited expertise in the domain, and we suggest you also pose that question to your peers within the industry.

  • http://zepo.in/ Zepo

    Hi Pratik,

    You need to be an authorized retailer for brands to be selling those shoes as a retailer. But we have rather limited expertise in the domain, and we suggest you also pose that question to your peers within the industry.

  • prannoy

    Hello Zepo
    Two my friends and I are planning to start up an e commerce website.
    We are basically thinking of selling electronics gadgets and garments.
    But at this moment we are a bit confused about the rules and regulation that has to be followed
    We have the following queries:
    1. Is it necessary to register the website as a company ?
    2. What are the formalities that we need to follow in terms of licensing and registration?
    3. Is a shop licence required?
    4. Are we supposed to apply for TAN/TIN ?
    5. When are we supposed to pay sales tax?
    6. Since we 3 of us are partners how should we go about with our registration as a company if required?
    7. Would it be illegal to sell any garments/ electronic gadgets on our site while the registration is under process ?

    The site has been registered under one of my friends name. And the website is fully developed and complete.

    Your guidance and advice would be of great help to us.

    Regards,
    Prannoy.

    • http://zepo.in/ Zepo

      Hi Prannoy,

      Thanks for dropping by. Would love to be of help. Please find answers to your questions below.

      1. You don’t need to register your website as a company. But you do need to register a company since you’re planning to sell electronics and gadgets online.
      You can register your company as a limited partnership firm, since there are 3 of you who are planning to start the business together.
      You will also need a business registration for payment gateways and other business licenses like VAT.

      2. Below are the licenses required for any online business.

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

      B. TAN no. is not mandatory for Sole Proprietors unless your turnover in the previous financial year exceeded 1 crore. But do check in for the requirement of TAN for a limited partnership firm.

      C. Service Tax Registration is applicable only for Service Providers only. Which surely is not the case for you.

      D. 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.

      3. A Shops and Establishment act may be required in your case, but we’d recommend getting in touch with a lawyer as well to know the nitty gritties of this.

      4. Depending on what company registration you opt for, the need for TAN/TIN no. may vary.

      5. Sales tax is applicable only once your annual turnover crosses 5 lakhs.

      6. A limited partnership firm should be a good start. Even then, jot down your requirements as a company and then choose what company registration works for you. The other option is also a private limited company.

      7. We don’t have much of an idea about this. Apologies.

      Hope this helps.

  • http://zepo.in/ Zepo

    Hi Jaspreet,

    Thanks for writing in to us. We’d try and do justice in answering these questions:

    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. Other licenses under the Food industry are required, like License under FSSA.

    3. You can register your company as a sole prop. although it is not mandatory. Although, we suggest you do since it gives you legal protection, just in case, the need arises.

    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.

    Hope this helps.

  • http://zepo.in/ Zepo

    Hi Jan,

    Apologies, but we don’t possess much information on incorporating a service-based business. We suggest you get in touch with a lawyer to know more.

    We regularly deal with product based start-ups and entrepreneurs, hence the in-depth knowledge on the same. Apologies for the same.

  • http://zepo.in/ Zepo

    Hi Manas,

    You can register a single company as a sole proprietor and the two web stores can become different brands under the same company. However, you may like to cross-check the same with someone with the requisite legal knowledge.

    Hope this helps.

  • http://zepo.in/ Zepo

    Hi Manoj,

    You can register a single company as a sole proprietor and the two web stores can become different brands under the same company. However, you may like to cross-check the same with someone with the requisite legal knowledge.

  • http://zepo.in/ Zepo

    Hi Mitali,

    All marketplaces have separate legal requirements as far as onboarding sellers are concerned.

    For example, 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.

    We’d suggest you get in touch with the shortlisted marketplaces of your choice and know if company incorporation is a pre-requisite to selling with them.

  • http://zepo.in/ Zepo

    Hi Aarti,

    We don’t have much information about the documents required for selling on SnapDeal and Flipkart. However, we suggest you get in touch with them to better understand their requirements. You can reach SnapDeal on sellershelp@snapdeal.com
    and Flipkart on https://seller.flipkart.com/selfSignup/create.

    As for taxation, the implications will depend on the type of company registration you choose. If you are going in for a Sole Prop., for example, your taxation filing will include the company’s profits and loss. However, for a Pvt. Ltd. for example, you will need to file for taxation separately as an individual and for your company.

    If you are planning to start an online business, we suggest you open the current account in your Company’s name.

    Hope this helps.

  • http://zepo.in/ Zepo

    Hi Yuvi,

    Didn’t quite understand the question. Could you elaborate a bit so we can help you with the best answer?

  • Farzana

    Hi Zepo,
    I’ve been looking and looking and finally found my anwers on Zepo! Good job :)
    I do have a few queries though, being a newbie to e-commerce.I plan on starting a home based e-commerce business.If it’s possible could you help me out on my e-mail address?

    • http://zepo.in/ Zepo

      Hi Farzana,

      You can reach Ulric from my team at ulric@zepo.in or even give us a call on +91 922 358 3358.

      Glad to be of help. :)

      Cheers.

  • 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.​

  • Siddhartha Pande

    Hi Zepo,

    Me and a few of my friends are planning to buy fashion accessories in wholesale and sell on online marketplace platforms like Amazon, Snapdeal, Shopclues etc …

    While I’ve read most of the thread and found quite a useful information Could you please let me know what kind of Licences, registrations, PAN, TAN will be applicable for us? Especially because we will be working under a legal Partnership deed among us.

    We do plan to give a name to our buisness but we wanted to register it after a few months.

    Please advice.

    Sid

  • 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.

  • Sruthi Warrier

    Hi Zepo team! Many thanks for helping us all!

    We already have a family business which is an aquatech based company, service + product based. It’s been up and running since 35 years, so we have all the licences required. It’s a Pvt Ltd limited. (Run by my father)
    Now, I’m planning to start an ecommerce jewellery website, sourcing wholesale across India and have the following questions.
    1) If we open ‘Brand Jewellery’ (name just for the idea) under my father’s already running business like a subsidiary, do we need separate licenses or will the same licenses be applicable? (Shops and establishment license, trade license, CST – VAT etc)
    2) Should we register this business or will it just be a brand name under the existing company?
    3) When i use a payment getaway, I will be registering with our existing company credentials?
    Waiting for your reply!

  • 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.

  • Ankit Bidani

    Hi Zepo Team!

    Thanks for helping us all. I’m new to online selling and have couple of queries:

    1) To sell products online on different websites do I need to purchase them on Tax Invoice?

    2) If I would be selling items with nominal profit margins then how can I manage on shipping cost?

    Regards
    Ankit Bidani

  • Srinivas

    Dear Zeppo,

    First of many thanks for the efforts you put in to educate all.

    I read all the comments and highly surprised to see that all the queries are duly addressed and answered. Great work. I hope the same to me :)

    I am from Hyderabad, Telangana. My wife and me both together want to start an online store to sell clothes mainly focusing on female fashions. I am a working professional and my wife is a fashion designer. As of now we don’t have any business or shop. We don’t have any experience or knowledge regarding government regulations or statutory processes. We have to start from zero. Initially, my wife a sole proprietor and a few years later, I will join the business.

    My questions:

    1) Which is better: a sole proprietor or pvt ltd company?

    2) What are the regulations and permissions needed for both type of businesses?

    3) A physical shop establish is necessary for online store (As mentioned for Payment Gateway)?

    I am very much impressed by the Zeppo services stated on your site and like to take your valuable services.
    I request the Zeppo team to give me an action plan or step by step guide to start my online store including where you can help me with your services in that flow.

    Eagerly waiting for your reply.
    Also, you can send me your service/charge quotation on my email.
    Thanks in advance.

  • 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.

  • Ankit Bidani

    Hi Zepo Team!

    First of all thanks to you guys for solving big mysteries of people like me.

    Now let’s come to the point:

    I have a proprietorship firm from last 4-5 years which is registered under DVAT. I have an IEC code too and I use this firm to export goods from India to my friend living in Canada.

    a) I have never claimed any tax refund on the goods exported by me in these many years. Could you explain me the procedure to do so? Will I get total accumulated tax i paid so far?
    b) Recently I read on DVAT site that Tax Commissioner requested to submit e-brc certificate in order to process tax refunds claimed under Export. My bank has never issued me any bank realisation certificate during all these years. What to do?
    c) Planning to sell stuff online on portals like Amazon, Flipkart, Jabong, etc., I will be buying items locally from Delhi. Is it mandatory to buy items on Tax Invoice and pay DVAT on it or I could buy them in cash?
    d) Since my firm is registered under DVAT and most of the portals have their warehouse located outside Delhi, in such case is it necessary to get another state VAT registration where warehouses are located or is it sufficient to add them as secondary business place under the existing DVAT registration.

    Cheers!
    Ankit

  • Srinivas Dupam

    hello zepo i want to start online grocery and vegetable store with out any establishment or shop. I am planning to do in my home. Do i need any registrations for that.

  • rick

    I read ur post , its very impressive. I wish to buy products from wholesale market and further I wish to sell fashion products (scarf, wristband, tatoos etc) on amazon india or snapdeal, i contacted them and they said u need have a registered business name, vat, tin with curent acount etc… I am confused how to start. Also i wish to start my own website, how to get registered my business for payment gate way integrations for recieving payments online. how to create invoice for the orders i recieve. How to, & when to file tax returns for same… and lots more questions in my mind. Please help me. Thanks in Advance. I AM FROM NEW DELHI and initialy i wish to target indian buyers only.

  • Vaibhavk

    Hi Zeppe Team, I am plaaning to start a online retail store on your platform. however, i have few doubts which I would appreciate if you can help me out with.
    My product will be pickles. I plan to first start selling in India and then will try offshore markets. Can you tell what all certification would be required for this.
    1. Do i need any license to sell edibles products in India?
    2. What liceses would be required if I sell and ship products abroad.
    3. Do I need to register my company or solo proprietorship is good enough for starting up with zepo?

  • Lisa

    Team Zeppo:
    First a big WOW for this article and replying to each n every query.
    I am about to start my ecommerce site where I will resell eco-friendly products across India.And I am sourcing these products across India as well.
    I am a day job -holder .So, till the time I am on job , my hubby will be heading this.
    So ,my queries :
    1.From the comments I understand , I should have a registered company as we will accept online payments.
    If I go for Sole prop under my hubby’s name, can we change it to my name later , say after 1 year?
    2.To open LLC/Sole prop. , what all are pre-requisite.
    3. To buy/sell across India what all legal formalities to be completed?
    4.Approx. cost involved
    Eagerly waiting to hear from you.

  • 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.

  • Jai

    Hi Zepo team,

    I am planning on starting an ecommerce site for clothes and small accessories.
    i live in a rented apartment and have not employed anyone. I had a few doubts and hope you can help me.
    1. I do not have a shop and expect to work from home on my PC. Can i register as a sole prop on my rented apartment? Am I expected to use a signboard outside the registered address with the company name?
    2. if i source and sell within India, do I register for VAT/sales tax and how will I be charged.
    3. In the shopping cart software there is a field asking for taxes in the country. If I havent registered, am I expected to print taxes applicable on each online receipt.
    4. I plan to register in a few months depending on how the business goes. Just wanted to know If i will face any issue without regstering? Are there any other PG available other than Payu paisa for unregistered businesses?

    Thanks in advance and looking forward to your reply…

  • Jenni

    Hi Zeppo team, This is a really useful topic. I have also decided to buy clothes in wholesale and sell them in ecommerce websites like flipkart, shopclues. Should i have a registered company for this. What are all the prerequisites?

  • Nazim Nashipudi

    Hello Zepo Team, I am sure your will answer my queries.

    I want to start selling online services to U.S Clients, and setup a website with Payal as my payment gateway. I will be the sole proprietary of this business, who will be working from home.

    I will be selling digital products to the clients, like MS Word Template and Graphics.

    1). So, do I need any license to sell services in U.S?
    2). Is physical address required on the website or the electronic invoicing?
    3). Do I still need to register as a Sole Proprietary, if am using Paypal as my payment processor?
    4). To sell in overseas, do my website name or logo needs to be registered in India or U.S?
    5). Is it mandatory to have a local office in U.S to sell digital products there?
    6). Can I accept payments processed from Paypal without a Current Bank account?

    Would appreciate, if you can provide a prompt reply.

    Thanks

  • 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.

  • anupam

    hello zepo team i want to start online selling goods on eCommerce sites. i read most of discussion bellow ,i have a doubt if i sell any goods on eCommerce sites

    1. can i give a bill in the name of buyer as solo propritership

    2. is vat no. and service tax registration required in starting of business
    3.plz provide me more assistance on my email

    thank u so much in advance

  • 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.

    • Rick

      What is the process of getting online business registered in new delhi… what are the formalities and Fees.. (renewals if any).. Tax formalities if any ?? kindly clarify.. thanks

  • 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.

  • Sam

    We have registered pvt ltd company,send us agreement

  • 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.

    • Maaz Khan

      A marketplace model? Ah more confusion now :p
      But I talked to ccavenue’s customer support, they didnt seem to have a problem, will try talking to them again when my application is ready.

      Btw, if you can help about this:
      Since I will be sending payments to my clients, I will be accumulating a lot of money in my account which i will forward to their accounts.
      Being optimist, suppose I get Rs. 5 crore :D , for 10 clients, I will be forwarding this money to each of them. And my commission from this will be Rs. 1lakh, suppose.

      Do you see any problems with the income tax authorities? My account getting 5 crore which i forward to other accounts (my clients’) and my account remains with just 1 lakh. Will the tax fellas think am trying to evade tax by transferring the money to other accounts ?
      Hope you can see the picture here and advice of any trouble/issues.

  • 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.

  • Maaz Khan

    Thank you for such an informative article! I had an “Online services” idea in mind and was in a lot of doubt regarding the legal issues. This post cleared a lot of my doubts, thanks once again.
    Since you are being so good to reply to all the comments, let me too ask you :D

    I will have a website, that will provide a small service to institutes. The institutes currently provide that service offline, i will help them do it online. The institutes charge money, I will implement a payment gateway and charge clients of that institute. I will then forward the collected money to the specific institute (after taking my own charge from that money for the providing the online service).

    I dont need any employee or an office/shop. From your article I understand that I only need to register as a sole proprietorship. I will just need to open a current bank account. I already have a PAN number.
    Is there anything else I may need that am missing?
    How can I get the certificate for the Shops & Establishments Act if I dont have a shop? (for the payment gateway).

    And how can you be so good to reply to all of the comments? :o :p

  • 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://www.amunity.in/ Amunity

    I want to start a sole propritership business.can you please provide the detail of sole propritership prossess in Delhi (MCD)

  • munnacomp

    Hi…

    I want to start a B2B marketplace through a website…What is the registration,annual tax formalities to complete before starting?Can you help me by giving some information?

  • 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.

    • Sheriff

      Hi, Zepo,

      May I know what is PG?

  • DK

    Hello Zepo,

    Thanks for such a informative blog. You cleared my many doubts regarding sole proprietorship.
    I am going to start online selling business but I want to import things from China for that. I will need IEC for that, right? My import amount wont be higher than 1-2 lacs per month.
    And I can use my home address to register sole proprietorship business?

    Thanks for your time.

  • rajnish

    hi,

    i am willing to start an online book store. In India, books are tax free goods. please guide me the legal procedure to start the online store if in sole Proprietorship form.
    please also guide me the legal steps to form a company for online book store and all other legal procedures required.

  • charan

    Hello Sir/Madam

    Want to start an ecommerce website(clothing and electronics) with gateway payment as a solo proprietorship , i red the below comments but still to clarify, because still i am at the beginning stage. when i need to apply for the registration.

    Thanks in advance Zepo Team

  • 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.

  • Vishnu Sharma

    Vishnu Sharma

    Hello Sir / Madam

    I am going to start a new business of Redyment Garment online . I want to sell products online, do I need to register my firm ? What are required to do this? I am located in Vaishali Ghaziabad. Also if I shift to any other state then I need to do same again? I integrated a payu payment gateway on my site as individual.

    Can you please help me?

  • Kiran

    Hello Zepo team,

    I wanted to start a e-commerce marketplace specifically for handicrafts products and other products if available. and this is a sole propreitorship. I wanted to understand what are the licenses I need to take to start this e-commerce marketplace. What are the tax slabs applicable for various products and tax licenses I need to take to sell my products.

  • Kiran

    If I am selling Handicrafts products and sarees, do I need to apply for VAT license as I am selling products? What is the case if my annual turnover is less than 5 lakhs?

  • Tridip Gogoi

    if i start a e commerce business from my house as a sole proprietor, will i need any license for it or i can start without any license as of now.

  • tridip

    hello,
    i have read your blog but still have some confusion. I am planning to start a ecommerce as a sole proprietorship . As i don’t have much fund i am planning to start from my house as of now. So my question is do i need some any license for it or i can start without the license for now.

  • 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.

  • http://www.craftszilla.com Varun Srivastava

    Hello,
    Can you please help me? I am going to start a new business of handmade products. I want to sell products online, do I need to register my firm or trade mark? What are required to do this? I am located in faridabad (haryana). Also if I shift to any other state then I need to do same again? I integrated a payu payment gateway on my site as individual.

  • 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.

        • Prateek Prakash

          Hi, Thanks again. I’m not opening any kind of retail space or any other offline space. I only sell products via online marketplaces from my residential place in delhi. So do I still need to register under the Shop and establishment Act??

  • Prateek Prakash

    Hi,
    A valuable post for the entrepreneurs.
    I’ve registered my firm (sole proprietor) in Uttarakhand but I want to operate from Delhi as most of the manufacturing is done in Delhi. The product are sold at online marketplaces like amazon, flipkart only and in near future I’ll start my own e-commerce website. So do I need to register my firm in Delhi also?? As all the products are sold online.. Please provide some information on this.
    Thank You

  • Raju

    Dear ZEPO Team,

    I want to start Online Gift store. My Gift Baskets are creative and includes Chocolates, toys and other Decorative and gift articles. I want to know the Tax include in this Gift Business ? Service tax or (CST, VAT )or both ? Because Gift Baskets includes many different articles which falls in different category to pay Tax. If i calculate each and every product TAX in each Gift Basket it is rocket science to calculate on each sale.

    Can i start it as Service (S TAX) based, which eliminates all Tax related headaches ?
    If no ! What is the best way to start Gift Basket Store in relate to taxes ?

    If it is Service based store, how ZEPO software will show in customer billing invoice ?

    Your Answers will change my life.

    Kindly Help Me. Thanks !

  • 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.

  • rahil khan

    thnku so much first time visit on site and i read all comments and everything my all doubts has been clear .. thnku so much sir :)

  • 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.

  • S Rastogi

    Excellent blog with very informative info. I have one query. If I start with sole prop. and later on after 2yrs decides to convert to Pvt Ltd company, Is the migration smooth or need to start from scratch again?
    thanks

  • rajiv

    Dear Zepo Team ,

    I have something to ask ..pls can you help me on this

    i am in process of starting a ecommerce company …here i am just not clear

    would i have to register my company as sole propertership or as trademark

    what is the difference between the both .. pls some one help me

    regards

    rony

  • Balaji

    Any information specific that can be shared regarding registering at Tamilnadu?

  • rajiv

    Dear Zepo ,

    Great posts always which gives good information for the startups ..

    her i have a question pls help me ?

    when we register ecommerce company do we have to register the website

    or do we have to register with company name ..

    with out the company registration the payment gateway cant be taken

    so pls guide me on this …

  • 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

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  • 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.

  • sunny

    I want to open an online greeting card store.Where shall I need to do the registration & how the online transactions will happen through my website?

  • 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.

  • chidambaram

    Hi zepo team I need some info about starting omni channel business can you help me

  • 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.

    • sunayana

      Hi,
      Could you please send me a copy of vendor agreement as well at sunayanasj@yahoo.com

      • http://zepo.in/ Zepo

        Hi Sunayana,

        Have mailed you the same. Please do have a look.

  • 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.

    • Charu Mukherjee

      Hey, Can you please send me the sample vendor agreement as well? Thanks a ton!

      charucm87@gmail.com

    • 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!

  • Amitesh Rai

    Hello,
    I want to start an IT company that would be product driven, As a sole proprietor what all licenses do i need to procure to start my company, and can I register my company name as i don’t want anyone else to take it up as i am starting a sole proprietorship and not a limited (pvt/pub) company. I read about the OPC schema but the amount of paper work and limitation it involves as transferring to a full pvt limited after a certain margin, makes me negate the idea as my objective is to personally wholly own the company without any partner or shareholder.

    Please can you guide me in this matter as to if there exists any other type of business module in our country which gives us complete control and also a registered company status, i am ready for the unlimited liability issue.

  • Jyoti Gupta

    Hi, I am launching an ecommerce store soon and would be selling multiple vendors product. Does zepo provide tools for drop shipping business something smiliar to ecommercehub integration? Could you provide me a vendor’s agreement also? Please send me at jyotig79@gmail.com

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

    Excellent Post here & I Hope you still provide support for this..

    I have a Online Website Business, Basically what I do is Web Designing & Selling Web Hosting & Domain Names as a White Label Affiliate.
    Like all other I don’t like to be called as a Freelancer, So I decided to create a Brand for myself & start selling my personal services through my website. (This services are all Digital, not physical. No Shipping Required)

    So, Do I need to File for a Registration?
    I don’t have any Shop, I do work from Home all alone.

    And If I have to Register a Business then please guide What & How?
    Also will the bank create a Current account on my Brand Name without Shop License (as I don’t have an shop & neither do I need one)

    There’s No issue about getting a Gateway for me, As I accept Payment through PayPal for my services & for the Affiliate, they provides its Own Gateway for the same.

    Also majority of my Clients are International so am worried if I get into trouble for getting Payments in US$ without a Business.

    Kindly Guide. Thank you!

  • 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://www.paytm.com Saurabh Purohit

          If you are looking to sell your products on paytm.com,
          kindly contact me at

          7208000112 or mail me at saurabh.purohit@paytm.com for details. I will help you
          to get your company register at Paytm Marketplace for free.

  • 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.

  • Punit Bansal

    Hi Zepo Team,

    Do it is mandatory to have physical office also when you are selling online. As company registration can be done at home address also. Kindly clarify on it.

    Thank You !!

  • 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.

  • Karan

    Hi, I am planning to start a grocery website in delhi as a sole proprietorship to begin with. what kind of licenses will i require… pls help

  • Aashish sharma

    Very Informative article… I had a query on setting up a e-commerce venture, What kind of approvals do i require and what kind of taxes do i need to know…. Please help.. M starting a private Ltd. company with my friend.

  • 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

  • Atul K

    i want to start online clothing store with my own brand name, i am not manufacturing cloths. i just get it done from manufacturers. i want to sell it online with my own brand name( on website with zepo and also on Ebay, amzon, flipkart, Myntra etc.) I am from Maharashtra. plese ans my questions.
    1) Do i need to register for CST? (Central Sales Tax) or their is Tunover Limit?
    2) Do i need to register for VAT? or their is Tunover Limit?

    3)For Payent Gateway Do i need to Register as sole prop.?

  • Jo

    Hi Team,

    I am in Uk now and want to start an online(through
    facebook page) sole proprietorship of selling imported goods to India
    and abroad ,

    1.Can I start a bank account in the company name, if it is not registered?

    2.How do I secure my “company name” without registering the company ?

    3.If i decide to register the company do I need to be present in India or can it be done online?

    4. For shipping the product abroad is any taxes required?

  • http://batman-news.com Ricky

    Thank you very much. Article is very helpful for new start-up. You have solved many of the queries.
    I want to start an online selling business where head office will be Lucknow (UP) my permanent address but operation or Product delivery will be from Bangalore (Karnataka) from rented warehouse. Then how should I go for registration of VAT/CST. If I will apply registration from Lucknow (UP), weather I can use same VAT/CST in my invoice which I will generate from Bangalore or I have to apply for new VAT/CST registration for Bangalore.
    Please clarify

  • 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.

  • J saha

    I would like to open a online portal. where i want to give all the information to the user, and initially dont want to earn anything from it, until and unless it become familier with the user, and after it become HOT in the market, i will earn money through advertisement. so i don’t need any online payment gateway for that.

    So what are the legal procedure i have to follow. I don’t need any room nor any employee for that. and its a proprietorship company i want to open.

    after reading lots of article and blogs, my conclusion is:

    1. get a trade license from nearest municipality.

    2. get the service tax registration because i am servicing something to the customer(probably i am corrrect). but not at the startup phase.

    3. i dont need any CST/VAT.

    4. i dont need any shops and establishment certificate

    5. i have to open a current account , but initially no transction with that account still i have to open that.

    6. I dont need to apply for professtional tax because i am not recruiting anyone initially.

    IS my understanding is correct?

    Please reply.

  • 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.

    • Atul k

      CST is applicable for e commerce also? what is its turnover limit?

  • 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.

    • sanha

      Thank u for your prompt reply, really appreciate it.

      All banks I have contacted for current account require some govt document as proof for the existence of the company. With out a current account I am unable to obtain any licenses. Could you suggest some banks where I can open an account without company proof?

      Thanks in advance

  • 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.

  • sanha

    Hi, thank u for the lovely article.
    I am a seller on market places like ebay and shopclues. Looking to expand and want to start selling on snapdeal, jabong.com etc. However they require me to get myself registered. Inorder to go ahead with the registration I am facing trouble since I have no registration of the company I am not able to open current account as bank requires some proof of the firm and my CA is unable to do my sales tax and cst registration without current account. In such a situation what should I do?
    My business in completely online, I store my products at home. So I am unable to get a shop establishment certificate. Also I sell products, hence I m not entitled to get serbice tax registration done either. What can I do to open current ac.

    thanks

  • coolboy

    hi
    i like your responses but still want to know accurate answer for my question. hopefully you will surely reply
    i am from uttarakhand and want to sell products with in india all over india. currently my turnover will be below 5lac. please tell me do i need to be a sole proprieter or can sell them .
    goods i am selling is of well known company – direct to customer service like amway. so i will not get vat credit

  • zubin

    Hi zepo
    I am starting a e-commerce web site with only cash on dilevery payments do I need to register it as a company?

  • snp nair

    Hi there, This is really a very good post. Have to thank you for your time and interest to post this. I plan to start a sole proprietorship firm. This is going to be home / hand made jewelry business, which will be sold online. There could also be international customers. And from your post, I gather that this can be a simple e-commerce company. My questions:
    1. Since this is going to be selling physical goods (jewelry), does this need to be registered as an online company?
    2. This is going to be headquartered in Bangalore. Can I register this company online?

    3. I am abroad at this time and wish to register the company while I am abroad and start its functioning. Can this be registered online and can the functioning start?
    4. Being sole proprietorship firm, can I have an employee designated at a senior capacity in this firm?

    Thanks,
    snp nair

  • 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.

  • sunil

    Dear Zepo team, thanks for this really informative article.

    Sir in the comments and your answers under this article, some persons have asked whether any registration like vat/tin is required or not for selling on emarketplace like eBay etc. You have answered in one comment that it’s not at all compulsory to register to start selling on eBay etc. But at two places its written that one is required to register for vat once the annual turnover crosses rs 5 lacs.

    Sir, we would like to have a little more clarity on this issue. Kindly tell us whether any vat/CST registration is required or not for selling on eBay. Can one have a turnover of rs 1-5 crores on ebay and still be unregisterd?

  • Kanduri

    Dear Team,

    I am looking to open an printing website and mostly I reside in bangalore and would like to register in Hyderabad. This is online shopping with multiple cities delivery. Please let me know how to start the legal registration and tax details. The establishment will be under my wife Name hence please let me know the details for the same. Thanks in advance

  • Vinod

    Can job holder in any company open a sole PROPREITORSHIP firm? If yes while filing income tax he/she can file the 2 differnt incomes differently or the person have to consolidate both the income and file?

    And as the maximum threshold of the services tax is 10Laksh. So while paying service tax to govt does he/she has to consider the consolidated income from salary and business OR has to consider only income from business?

  • James

    I am running a vacation rentals website advertising short term rental properties on it. Clients are based in USA and I invoice them thru Paypal in USD. Paypal charges its commission and convert the money in INR from USD and sends NEFT here in Indian bank . Am I liable for service tax in India?

  • 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.

  • Blah Blah

    Hi Team Zepo,

    I’ll tell you me scene.

    I’m starting up a media company called blah blah(consisting only of me no
    employes). I would be signing agreements with celebrities and with other
    companies which would need various services of celebs like attending
    events, blogging etc.

    Now my doubts below,

    1. Is it mandatory for me to open current account? I will be getting and making payment? (I have savings Account in my Name)

    2. Do I need to register somewhere for the firm?

    3. If no account and no registration, can I make a letter head, stamp, biz cards with the company name blah blah

    4.No account and no registration, can I sign agreements and/or B2B letters
    with multiple parties and put company stamp and sign it.

    5. Also If I sign, what would be the designation, will it be proprietor or anything that I want like CEO types

    6. Lets say I cross 10L after 10 months, Can I start a current account and register for service tax at that time and start of now without anything

    Basically, I have clients waiting and I dont want to spend time now with bank and registrations.
    Would very much appreciate your response

    Thanks & Regards
    Blah Blah

  • 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.

    • Atul Kamble

      what about Central Sales Tax?

  • 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.

  • Neelam

    Hi, I am planning to start a home based business initially, which I would later move to retail store front. However, here at the initial level I am also seeking International Sign up for Dealer Program. What sort of licenses and permits or registration should I undertake while operating from my home. I would be the sole proprietor
    Thanks, Neelam

  • Samuel

    Hi,

    thanks for this post. really helped a lot understanding sole proprietor requirement.

    I need little help:
    1) Nature of my business: I am planning to start e-commerce website, where i will be selling imported products. also like to start as sole proprietor. I am my family members are helping me establishing this company.. we are not hiring anyone from outside.

    My Query:
    – TAN >> since i am not hiring anyone do i need to register for TAN?
    – Service tax registration. >> at the moment we are planning to start small. Can i register for this in a later stage(may be after 3-4 month). just want to make sure that the business is going good and then apply for this instead of registering now itself?
    – VAT/CST >> For imported products can/should we take VAT from the buyer? should i apply for this?
    – Shops & Establishment License. >> since it is online business , do we need to apply for this? Also can we register it from our rented home address?
    – Do I need to take any other licence, for our kind of business?

    Thanks again for your help.

  • 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.

  • Rashmi

    Awesome Post!! . In one of the comments you mentioned that if you are operating out of Delhi you can open the sole proprietorship online, Can you please share the link here, tried checking a lot of sites..

  • 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! :)