How to Register an E Commerce Business (Tamil)

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HOW TO REGISTER AN E-COMMERCE BUSINESS

Nowadays, because of the arisen technology such as advanced smartphones, 4G & 5G the need for E-Commerce portal has become huge. A report says this e-commerce industry would make a business of $84 million by the year 2021 in India.
So in this article, we are going to deal with
• How to register an E-Commerce business in India
• What are the Legal implications in E-Commerce Business
• What are the Legal Compliances for E-Commerce Business
What is E-Commerce

In ancient days, business activity started in the form of Barter System. Where products were exchanged based on the need. Then Gold has stepped in as a medium for trade. As afurther development, the currency was introduced. This was the time where the trading activity started growing at a rapid speed. Now, because of Globalisation, the buying and selling activity has gone Online.

Bill Gates: If Your business is not on the Internet, Your Business will not be in Business.

How to Register an E-Commerce Business

1. Company Registration
The first step to establish an E-Commerce business is to Start a Company. In my various Articles and Podcasts, I had stated that there are various types of Business Ownerships such as:
• Proprietorship
• Partnership
• Limited Liability Partnership
• Private Limited
• One Person Company
• Public Limited
As a first step, you need to choose which type of entity you are going to choose. Every type of entity has its own advantage and Disadvantage. But in my opinion, the entity that aptly suits for an E-Commerce Business is Private Limited.

Private Limited Registration

To register an E-Commerce Business as a Private Limited Company, there are some basic requirements such as Minimum 2 Share Holders, the minimum Authorised share capital shall be 1 lakh and you need an office space. The Private Limited module contains plenty of advantages such as
• Limited Liability
• FDI
• Attract Investors

2. Taxation

A. PAN Card

The basic requirement for every tax compliance is PAN Card. If it's going to be a Proprietorship Firm, there will not be a separate PAN for the business, the Proprietor's PAN can be used for the Business too. But for Private Limited or LLP or OPC, a separate PAN Card need to be obtained for business. Further, every year, Income Tax returns need to be submitted to the Government of India

B. GST

Every E-Commerce portal should register under GST and returns need to be submitted on a monthly basis by way of GSTR 1 and GSTR 3B. It is furthermore required that every vendor must apply and obtain GST.

3. Agreements

Every e-commerce Portal should have proper Terms and Conditions and signed-up with its customers and vendors. So that there cannot be any legal dispute in the business relationship.
1. Privacy Policy

A privacy policy is one such legal document that defines different ways through which the website is collecting, processing, storing, sharing, and protecting the data of its users. Also, it even discloses the purpose behind this activity and the rights that users have in this regard.
2. Terms and Conditions
A Terms and Conditions agreement typically is organized to cover several important sections or clauses, depending on the nature of the business. In general, good Terms and Conditions for an e-commerce store should contain the following clauses:
• Limitations of liability
• Intellectual property details
• Pricing and payment terms
• Product information
• Dispute resolution

C. Vendor Agreement
An E-Commerce vendor agreement is a business contract by which the company and the dealer agree to advertise and supply goods for the specific amounts and prices. The agreement sets conditions and details under which this exchange will take place, and can either be once or on a regular basis.

4. Trademark Registration

Trademark Registration protects the name of the E-Commerce Portal from infringement. Any symbol, word, or object used to represent goods or services produced by a company when legally registered becomes a Registered trademark. Trademark has become indispensable with a growing increase in the number of units in the business sector, and it provides a unique identity to each company. In the long run, trademark helps in creating a good reputation for their goods and services among the members of the society and gives the registered company a right to institute legal proceedings against those who replicate their trademark.

I summarise the requirement
• Company Registration
• GST Registration
• Agreements
• Trademark Registration