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Registering an e-commerce business in

India: Sole Proprietorship 101
Tanya Rao 56.3k 25 434
Off lately we have been getting a lot of queries about getting businesses registered, so we thought
that wed make it easier for you.
Any e-commerce business which wants to accept online payments, needs to be a registered
company. So as to be able to integrate an authorizedpayment gatewayon the website.
We wrote this post to be a one- stop guide for all your queries about getting your brand up and
working to start selling online. And the easiest way to do that is to register your business as a Sole
Proprietorship.
Let us begin with understanding what a sole proprietorship has to offer.
For starters, sole proprietorship is the easiest firm to start, has lower legal compliances and is fairly
easy to tackle. A proprietorship business and its proprietor (i.e. you) are a single entity in all legal
matters. Indian law doesnt treat the two differently as is the case with a company registered as a
Private Ltd or a Public Ltd or even a Partnership firm. And in view of this, you are taxed at
individual rates instead of the corporate rates. So it greatly reduces your tax formalities as you
have to file only one personal income tax return.
So you and your brand are one soul, with no biases whatsoever. You can even run it out of your
home, for which no special registration is required. But a note for whenever you intend on
expanding and setting up a physical commercial store, you will have to fill in some paperwork with
your local municipal corporation and will need to check in with theShops and Establishment Act.
Now to dive straight into the nitty- gritty of Sole Proprietorship, we explain to you in detail how to
register, thecost of setting up your online brand, taxation of a sole proprietorship and business
licenses required.
Registration of Sole Proprietorship
You can register your ecommerce business under sole proprietorship at your nearest local
municipal corporation office. You need to submit the Shops and Establishment Form to complete
your registration. Along with it, you are needed to submit an undertaking. The fees for registration
may vary depending on the state and the citys municipal corporation area.
For the greater Mumbai municipal corporation area, the Shops and Establishment Registration
form, the undertaking needed with it and the fee schedule for the same can be found on the
following links.
1. Registration Form
2. Undertaking
3. Fee Schedule
You can find a list of municipal ward offices in your city on your citys municipal corporations
website.
Note: While registering, you will be needed to submit an address proof for the Shops and Establishment
registration. You may submit an address proof for your home or any other place you will be working out of.
Cost to set up a Sole Proprietorship business
There is absolutely NO additional cost required. All you really need is acurrent accountin the
name of your business, at a bank of your choice. That is it! All you need to do is, at the local bank
branch of your choice, ask for a form for proprietorship firms and get a bank account ready for all
financial transactions.
When opening an account you may also need to submit an address proof such as an electricity or
telephone bill or a rental agreementif youre going to be renting out a spaceor your shops and
establishment registration.
Taxation
You dont need a separate PAN for your business for taxation purposes. Your personal PAN will
serve the purpose. And when filing Income Tax returns, you will have to file returns in your
personal name.
As you and your sole proprietorship business are one soul, you dont need to pay corporate tax
rates. As mentioned earlier, individual tax rates apply as all profits, losses, assets and liabilities are
the property of the proprietor. And the proprietor pays self employment taxes on any profits made,
making it all the simpler.
Service tax is applicable only if youreselling a serviceto your customers. And similarly if you are
selling goods, VAT, Excise and/or Sales Tax are applicable. But all these taxes come into play once
youve crossed an annual turnover of 10 lacs. You may also need to consider Professional Tax, if
Wantemploying
youre To Start Selling
people.Online? Register for a 14 day free trial and create your own store in
just 5 minutes.
Business licenses

Yes I want my online store
Depending on the nature of the business, you may need different registrations and licenses.
1. Recommended-Shops and Establishments Act:This registration would be needed incase you

want to set up a physical shop and plan to employ people.And it is very essential for getting your
own payment gateway for your online store.
2. CST/VATregistration:If you are going to be selling goods, then VAT or CST (between states)
may be needed once your annual turnover crosses 5 lacs.
3. Service tax:Registration for service tax is mandatory and may be required once your annual
sales turnover crosses 10 lacs.
4. Professional Tax:This tax is mandatory if you have even one single employee. Each state is
allowed to create its own guidelines, so it would be advisable to check whether it is mandatory to
register for professional tax in your particular state.
All these registrations and licenses may vary from state to state, so please do check your states
guidelines and regulations (exemptions, if any) to know better.
Before you go ahead, think up a catchy name for your online business. And get it trademarked.
Avoid going in for generic names, as youll have to suffix your city name or India at the end for it
to be distinguishable.
Now that everything is on the table we wish you the best in setting up your brand! We hope it kicks
ass!
PS. Dont wish to register your business to get a payment gateway? Now you can accept online
payments on your ecommerce store without registering your business. Heres how:Payment Gateway
for Individuals and Non-Registered Businesses
Did we miss a point? Share your experiences with us in comments. We would love to hear the
ground reality of trying to register your company. Is it a very tedious process?
Reference Links:
1. You may also like to check out the following link, about starting a business in various cities in
India. It includes details about Shops and Establishment registration, Sales tax, Professional Tax,
etc.
Doing Business in India
2. The following link provides some good insight into the Shops and Establishments Act in
Karnataka.
When do I need to apply for a Shops and Establishments Registration for my business in
Karnataka?
Courtesy:Doing Business, International Finance Corporation
Have you applied for a business registration or are you waiting to? If your products are ready, no
need to delay.Give Zepo a try and start your online store in the next 5 mins.
Yes, Id Like to Start My Online Business
Tags: Bank Account , company registration , CST , Doing Business , ecommerce business , PAN , Payment
Gateway , Professional Tax , selling online , Service Tax , Shops and Establishment Act , Sole
Proprietorship , Taxation for Sole Proprietorship , VAT
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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.
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Zepo
Hi Tausif, for the online part of the business, you will need the same licenses as you would require
for the offline business.
Zepo
Hi Nikit, you can run the business as an individual and even as a registered company. With respect
to the documentation, you will need PAN Card, Aadhar Card in case of individuals or a proof of
address of the business and a bank account.
Amit
Dear Zepo, i am starting a website to sell images online. Just like a shutterstock I will be collecting
money for shipping also and I sell my products all over INDIA. Is it necessary to have registered
office.Should i register for VAT or CST or Service Tax now itself ?
Zepo
Given that you have both digital products as well as physical products, we would suggest that you
talk to a competent CA or tax attorney to understand what registrations would be required.
Soha Habib
Hi Zepo, i am starting a website to sell Crystal show pieces. Website requirement is to accept
international credit/debit cards. For that i need a merchant account/payment gateway. For which i
need to register my business even if its without turnover of 5 lack.
I want to register my online store so that i can have a merchant account integration into my
website.
Zepo
Hi Soha,
Someone from our team will get in touch with you soon and help you with your query. Thank you
for dropping the query in our contact us form as well.
Team ZEPO
Zepo
It is not necessary to get a registration to start of with. Many online entrepreneurs choose to
register their business only after a few months depending on the response that they receive.
However, we would be able to comment about your particular case better if you can let us know
more details. You can tell us your contact information or drop us a mail at contact@zepo.in so that
we can help you with more details.
Zepo
Trade Registration requirements depends on the type of business. We do not have too much
expertise in this field so I would advise you to contact a registrations lawyer who can help you with
the same.
Desy
Hi, I read that the annual turnover should be 10lac to be registered business is it true? I am having a
plan for classified site where paid advertisement will be sold do I need to register my business
then? should I register for Shops and Establishments Act, service tax and the cst and VAT? thxs
Zepo
Hi Desy,
The annual turnover needed for registering business is 5 lac. With the classified site, you do not
need to register the business till the turnover is above 5 lac. I would encourage you to speak to a
registration lawyer to discuss the type of registration needed, since we our expertise in this area is
limited.
Varma alluri
Website is not mandatory for incorporation of company or LLP or Sole Proprietorship.
Zepo
You only need to register the business if you turnover exceeds 5 lakhs in a year. You can sell on
facebook or social media without registration, as long as your turnover falls within this amount
Zepo
Hi Cibi,
If you are selling the albums on your own website, you will not need a VAT or CST certificate to
start selling. You can begin selling just like that, but you will need to get the business registered and
the VAT done if your turnover increases to 5 lacs p.a.
If you are planning on selling on marketplaces, it is advisable to get the VAT registration done
before you apply for marketplaces since most marketplaces require this before giving approval for
selling.
Apurba Deb Nath

How does registering as one person company can help? And do I need to do any copyright or
anything?
Zepo
Hi Apurba,
OPC has a separate legal entity from its owners. In case of sole proprietorship, there is no
distinction between the two entities. This means that the liability of the owner is separate from the
entity in OPC and vice versa. Or in other words, the threat of lien on personal property in case of
unmet liabilities is non-existent. Personal financial trustworthiness and credit ratings of the owner
does not affect the ratings of the OPC, at least not directly. Owing to the feature of it having a
separate legal entity from its owners, the OPC is taxed separately, unlike a sole proprietorship.
Bear in mind that we are not experts at company registration and a lawyer or CA with experience
in company registrations would be a better resource for you to asl.
You do not *need* a copyright to start your business, however if you are serious about the business
and are going to register the company, then you should also get a copyright for your name and logo.
This is just to avoid hassles in future.
Zepo
Hi Apurba,
There are not too many legal formalities you need to worry about. You should however, register
your business as a One Person Company (OPC). It will help you in future.
Rakesh D
Very nice article. I came across one more article like this on http://www.myefilings.com.
Marya Dela
Hi, I have written answer at quora about on what are the legal steps required to start a ecommerce
business in india? It will be very helpful to you. https://www.quora.com/What-are-the-legal-steps-
required-to-start-a-ecommerce-business-in-india/answer/Ramesh-Mariyappan
Zepo
Hi Marya,
Great post! We will surely share it!
Zepo
Hi Ashish,
We have an office in Delhi, although it is temporarily out of commission for a few days for Diwali
However, you can reach us on our phone 9223583358. We are available from 10 am 9 pm, 6 days
a week!
Zepo
Hi Prasenjit,
Thanks for your interest. One of our team members will get in touch with you shortly.
Team Zepo
Neha Singh
Awesome, thanks for sharing this blog.
Zepo
Glad you enjoyed it! Keep checking in for awesome blog posts
Zepo
Hi Shantanu,
You do not need to register your business for this business model. However, we would highly
encourage to get a One Person Company (OPC) registration done in your name. This will ensure
that all legal and financial liability is limited to the Company and not the member.
Zepo
Hi Naresh,
If you are doing the billing under the same brand name, then no separate registration is required.
Team Zepo
Zepo
Hi Sowby
Yes you can register under sole proprietorship. I believe all you need is a service tax registration for
your website because you are not selling any tangible goods.
Hope this helps

Zepo
Hi
To be able to start selling all these things on ebay youll be requiring a MSDS certificate. You also
need to get registered for CST for sending interstate shipments.
For knowing how to get registered on ebay please have a look at the following blog
http://www.zepo.in/blog/2015/06/18/exact-documents-you-need-to-sell-on-indian-
marketplaces/
Hope this helps.
R.s Mehta
Thanks
Zepo
Hi Jyotsna
You will have to register for the Shops and Establishment certificate.
In reference to your online store, youll be requiring a VAT/ CST registration to be able to ship
interstate.
You can check out the following blog to understand why youll be requiring a VAT?CST registration
and how you can register.
http://www.zepo.in/blog/2015/08/21/everything-that-you-need-to-know-about-vat-cst-and-
service-taxation/
http://www.zepo.in/blog/2015/05/29/vat-registration-simplified/
Hope this helps.
Zepo
Hi Ashish
If in future you move to another business then you have to register for it separately. Because with
each registration you get a definite registration number and no two business can have the same
registration number.
Hop this helps
Zepo
Hi Nikhil
The registration you take solely depends on the number of people heading the business.
You can look into OPC i.e One Person Company registration as it is very easy and you can convert
to Private limited whenever you want.
You can refer go this article
http://www.zepo.in/blog/2014/1
Hope this helps
Zepo
Hi Bjraj
As of now when you start, you need no registration. But when your turnover exceeds your state
limit you need to apply for VAT and service tax.
You need to have an official space or office address once you go for a company registration.
The registration you take solely depends on the number of people heading the business.
There are many limitations in a partnership firm. You can look into OPC i.e One Person Company
registration as it is very easy and you can convert to Private limited whenever you want.
You can refer go this article
http://www.zepo.in/blog/2014/11/08/a-to-z-about-one-person-company-registration-in-india/
Hope this helps
Zepo
Hi Ashish
Thank you for reaching out to us. Regarding your query, you dont require any licence. You can opt
for an OPC registration because it is hassle free, easy and you are the only person heading this.
You can refer to this article for more information on OPC
Hope this helps
Abhilash Gowda
I ve d idea of starting e commerce websites like amazon,flipkart.ive the idea of starting logistics
for this purpose with mimimun of 5 staff..i need to sell products all over the state if possible
allover the india
which type of licence shoud I need as dont ve partners to my starupis it national licence ?..how to
get it and where to apply for that.. what are the doctuments needed.
..how much time required to get the licence.
Zepo
Hi Abhilash,
Yes you can sell products pan India by registering for VAT/CST in your case.
For interstate shipments you need to have sales registration.
You can refer to the following blogposts for a detailed understanding of how interstate shipping is
done and how one can register for VAT/CST
1. http://www.zepo.in/blog/2014/03/20/mystery-behind-shipping-forms-busted/
2. http://www.zepo.in/blog/2015/08/21/everything-that-you-need-to-know-about-vat-cst-and-
service-taxation/
3. http://www.zepo.in/blog/2015/05/29/vat-registration-simplified/
Hope this helps.
Kartikeya
Hi, since I am not setting up a physical store, do I need to register with shop establishment act?
Zepo
Hey Kartikeya,
No, you wont be needing one in that case.
Zepo
Hi Saurabh,
Yes, you can register your company without having to pay tax until 5 lacs in annual turnover.
Zepo
Hi Kapil,
Thanks for writing in to us. We have just the blog post for you. We recently wrote about how to
raise funds for your business and it should be of good help to you.
You can check it out here: http://www.zepo.in/blog/2015/06/11/want-to-start-a-business-and-

have-no-money-raise-money-via-these-4-ways/
Do let us know if there is anything else that we can help you with.
Zepo
Hi Saurabh,
If your business crosses 5 lakh in annual turnover youre then liable to register for VAT/CST.
Zepo
Hi Takev,
We dont see any problem with your dad running your business for you. But business registrations
will more or less need to be done offline. But even before the registration, you can definitely start
your online store and start selling via it. Business registrations like VAT/ CST or TAN only kick in
after you cross a certain threshold in annual turnover like 5 lakhs.
Hope this helps.
Zepo
Hi Sanup,
If you are looking to start an ecommerce store, wed suggest you go to http://www.zepo.in and
start a 14 day free trial online store for yourself. After which, our team will get in touch with you
and take it forward from there.
Zepo
Hi Farooq,
We suggest you get in touch with a legal counsel that specializes in business registration, since
theyll be the best people to answer your concerns and best guide you forward.
Zepo
Hi Sameera,
Your understanding of TAN is accurate. Although online marketplaces like FlipKart do need TAN
number to establish verified sellers on their platform. Hence, to continue selling, youd need a TAN.
Zepo
No, you neednt Jose.
Zepo
Hi Jose,
In PayUMoney, they deduct the Tax along with the TDR.
For example: if PayUMoney provided PG for 2% TDR + ST 14% on 2% then the final cut will come
to 2.28.
So if I purcase a product of 100 Rs from your store then after deduction 97.72 Rs will be
transferred to you, the seller.
Hope this helps.
Sunil
Hai thank you very much for the above article about Sole Proprietorship. I got a query can i register
in a village and do business in a city of other district with no commercial space?
Zepo
Hi Sunil,
Yes, you most definitely can.
Do let us know if we can help you in any other way.
Rajesh
Hi, I wanted to start a website for free classified as olx and quikr. what document do i need. Also i
want to know that i am working in government PSU, can i start the website?
Zepo
Hi Rajesh,
Apologies, but we dont have much expertise in that area. Wed suggest you to explore the topic at
forums like Quora and Rodinhoods.
Zepo
Hi Aiman,
Glad to know that youre starting-up on your own. Below if the information youll need:
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. 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. IEC is mandatory if you are shipping internationally. And for which, the pre-requisite is a
registered firm.
Hope this helps. If youd like any further assistance, you can give us a call at 922 358 3358.
Job Details
Hello.. I want to start a business which includes web designing, setting up a AdSense account and
also pay per referral schemes. For this I wanted to name my business as Sac Online Solutions.
1. How to make it legal? Even I want to use payment gateway.
2. How much does it cost?
3. Where should I register my business? I mean do I need to go to any office or can I do it online
only?
4. Can my business be named as Sac Online Solutions Pvt Ltd?
5. Wat all documents I should submit to bank so that I shud a account in the name of my business?
Waiting for ur valuable reply..

Thanks in advance
Zepo
Hi there,
What you are trying to start is a services business online. Apologies, but we dont have much
expertise in that field of work. We know about company registration when it comes to products,
since majority of our target audience deals with that.
Hope one of our readers can help you.
wasim
Hi I am going to register for tin no. For e commerce bussiness
I waana know that I will have to pay any annual fee or vqt /tax to government it is compulsory
Zepo
Hi Wasim,
VAT is mandatory when the gross turnover exceeds 5 lakhs. However for imports registration is
the VAT schedule.
Hope this helps.
pooja
Hi,
I want to sell Cloths online.So without registering the the business can i start the selling b e
commerce using PayUMoney Option
Zepo
Hi Pooja,
You can most definitely start out selling online with a business registration, just yet.
Let us know if we can be of more help.
Zepo
Hey Abraham,
We, Zepo, wont be providing you with the Shops and Establishment Act certificate. That youll
have to register for yourself.
Although, the S&E certificate is more than enough and you wont need any other certificate to start
an online store.
Zepo
Hi Abraham,
To open an online store for your business, all you need to do is register for a 14 day free trial with
Zepo. And setting up the store is as simple as opening a GMail account. If you face any troubles, you
can also reach us at +91 922 358 3358.
As for the FSSAI registration, we are not very aware of which specific registration maybe needed.
Allow us sometime to find this information and get back to you.
Zepo
Hi Rod,
Thanks for writing in to us. It will be our pleasure to help you along in this new venture. Listed
below are solutions to your concerns. Do let us know if there is anything more that we can do.
the VAT schedule.
registered firm. You can read more about it here: http://www.zepo.in/blog/2013/11/07/sell-
international-how-to-obtain-an-import-export-code-iec-at-zep/
4. You can open a current bank account in any bank of your choice to maintain a healthy
segregation of finances.
abhishek
Hi, I have recently started Purchasing goods from different places and sell them at my home. Very
basic startup. I need to know how do i make this small business legal? do i need to register my
business as a company? How to register? what are the cahrges involved? I am the only person
involved in this business and work from home in Thane(Mumbai).
Zepo
Hi Abhishek,
Thanks for writing in to us. Noting below the solutions to your queries:
the VAT schedule.
3. If you are registering your business as a sole prop., the process is listed above. For One-Person
Company, here is the process: http://www.zepo.in/blog/2014/11/08/a-to-z-about-one-person-
company-registration-in-india/
Zepo
Hi Sunil,
No special registration is required to sell grocery products online. You can start off with it
rightaway.
Zepo
Hi Sunil,
A sole prop registration should be good to begin with. The cost and procedure are the same as
mentioned above.
hasanuj jaman
I am running a coaching Institute. Its a proprietorship firm. I have launched an website for selling
online courses.
I am also planning to launch a career magazine soon and sell it online.
Now do I integrate my website legally into my firm?
Should I have to trademark my website?
Should I have to convert my firm into LLP/ PVT Ltd?
What are my options?
Please guide me?
Zepo
Hi Hasanuj,
You dont need to integrate your website legally into your firm. A website doesnt need
registration, a business does. And since your business is already registered, you are good to go.
There is no need to trademark your website, etiher.
A sole prop registration should be fine to begin with. If along the way, your needs change, you can
register as an OPC.
Hope this helps.
Rajat
Hi, I already have registered firm (pvt) but its for IT sector. if i want to start eCommerce website
then may i need to register new firm or can i do with the same one ?
or If somebody have retail counter (shop) and have a TIN number then he/she can start online store
?
Zepo
Hi Rajat,
You dont need to register separately to start an ecommerce store. The same registration will
suffice, provided this company operates under the same brand name.
Even with a TIN number, you can start an online store. You are all ready set.
sree
Hi I want to start an online store. Can I register my company name xyz ltd and open a website as
kitchen.com
Zepo
Hi Sree,
You most definitely can, but provided that kitchen.com as a domain is available to you.
But you can definitely start an online store after registering your company.
Zepo
Hi Moheet,
Answering your questions below:
1. You should get a VAT registration in the state where you have registered your business which is
Delhi in your case. The registration is applicable pan India.
2. Youll need to pay VAT and CST in Karnataka, i.e. from where your goods are being moved.
Hope this helps.
Zepo
Hi Christiana,
You can postpone the business registration for now. And use your personal savings account for
accepting payments.
Do let us know if we can help you in any way.
Zepo
Hi Moheet,
Answering your questions below:
1. You should get a VAT registration in the state where you have registered your business.
the VAT schedule.
Hope this helps.

Vijay
Hi, I want to sell handmade items through international online marketplace, for this i need IE code. I
want to know that if i register myself as a sole proprietor, will i get IE code. Its just a startup, so
earnings wont be higher that 2 -3 lakhs per annum.
Zepo
Hi VIjay,
Registration for IE Code is a different procedure altogether and doesnt fall under a business
registration. You can read up about getting the IEC here:
http://www.zepo.in/blog/2013/11/07/sell-international-how-to-obtain-an-import-export-code-
iec-at-zep/
Vijay
Thanks a ton..
Rajit Gour
I want to start my online shopping business so what prodecure is required and what documents is
required.
Zepo
Hi Rajit,
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
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.
registered firm.
Hope this helps.
Rajesh R. Jadhav
I want to start online store for grossery product (tea powder) and sell it all over India. What
documents do i need to possess for the purpose . I do not manufacture the product but only process
and sell it. So, do i need a Food License issued by FSSAI ?
Zepo
Hi Rajesh,
Ensure that the producers of your tea have the requisite FSSAI license, before you start. Apart
from that, youll need the usual company registration and VAT/ CST or TIN registrations once you
cross certain sales thresholds.
Zepo
Thats right Arif. Let us know if we can help you with anything else.
Zepo
You got that right, Arif. Any government license that certifies you are an operating business should
help you get a payment gateway.
Zepo
Hi Arif,
You most definitely can use a Shops and Establishment to get a payment gateway.
A shops and establishment registration is required for setting up an offline establishment.
However, a sole prop is a type of business registration irrespective of an offline or online service.
Zepo
Hi Naveen,
Youll need a service tax registration. 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.
amount received towards taxable services.
Hope this helps.
Zepo
Hi Manish,
Thanks for writing to us. We are listing below the pre-requisites to start such a company. If you
require any more help, please feel free to reply to us again.
exceeded 1 crore.
within 30 days.
the VAT schedule.
5. Youll need an FSSA license too for operating a food services delivery business.
Hope this helps.

Zepo
Thanks for dropping in a word Joel.
Zepo
Hi Amit,
There is no database as such thatll let you check for a business. But what I can suggest is if you can
tell us more about your business, maybe we can help you out. You can reach us at hello@zepo.in.
Zepo
Hi Amit,
There is no universal way to check if a website is approved to function in India or not. Depending on
what you are planning to sell on that website, we can probably guide you on the legality of the
same.
Zepo
Hi Raj,
Here is a list of licenses youll be needing:
exceeded 1 crore.
within 30 days.
the VAT schedule.
Hope this helps.
Zepo
Hi Arvind,
If revenue generated from your website were to exceed 10 lacs annually, then you would need a
service tax registration. Till then you are good to go.
Hope this helps.
Arvind Jaykumar
Thank you for the prompt reply!
I have one more question related to the same
So can i start one company & register it as a proprietory & start multiple websites with the same
above concept & account every website revenue under this company? Because all these websites i
plan to start have the same concept, which is driving traffic & generating ad revenue..kindly advise
Zepo
Hey Arvind,
You can very much do that. Register all companies as subsidiaries of the same registered firm and
tax revenue of all of them together.
Arvind Jaykumar
Thanks for the prompt reply
Zepo
Youre most welcome Arvind.
Deepthi Sharma
Thanks for the reply!!
Zepo
Hi Jose,
Just a clarification. Youre registered for service tax with a threshold of 10 lacs but are selling
products, right?
Youll need either a VAT registration, since you are doing sales over 5 lacs. Even if you give your
home address and sell from the shop, the sales are being made from the same business entity. So
you will need a VAT registration. Maybe not TIN if you are sell from home.
Hope this helps.
Jose Joy
Im registered for service tax for photography business not sales.
Zepo
Yes, Jose, so in that case, youll need to register for VAT too.
Zepo
As for the VAT registration, it becomes mandatory only after the 5 lac turnover. But our suggestion
would be you get a VAT registration. Interstate shipments now require either a VAT or TIN
number. Otherwise the shipments may get seized at state borders. In that light, VAT registration
does become mandatory.
Deepthi Sharma
Thanks for the reply
Zepo
Hi Deepthi,
The process involved you going to your local municipal corporation office and getting the
application forms required. From there on, theyll guide you with it. Its a simple registration
process.
Zepo
Hi Mandeep,
You do not require any special licenses.
Zepo
Hi Mandeep,
You can definitely start an online business selling registered, or OTC or ayurvedic medicines. All
legalities are common to any other business.
However, youll need a Material Safety Data Sheet (MSDS) for shipment. And your shipments can
only be sent over a Surface shipping, not Air shipping.
Hope this sells.
Zepo
Hi Jose,
Thanks for writing to us. And before we start, all the best for your venture. We hope it does
supremely well.
Answering your questions below,
1. You dont essentially need a TIN number, but it is advisable to get one. Either a TIN number or a
VAT registration. Interstate shipments require either of the two, otherwise shipments have a high
chance of being seized at state borders. So with that regard, we advise you to get one.
2. You are not required to pay VAT until you reach that threshold annual turnover.
Hope this helps.
Jose Joy
you guys are just awsome for replying on time .thanks
Zepo
Youre most welcome Jose! Great day ahead.
wilson lobo
great information thanks ZEPOKeep it up..
Zepo
Thanks Wilson. Glad we could be of help.
harekrishna
Tanya, You have shared the excellent tips. This will truly
helpful to start the new eCommerce online store. You have tried to solve complexities
which are related to taxes. Its also helpful for an existing eCommerce online
website to increase the eCommerce sales without any problems.
Zepo
Hi Harekrishna,
Glad I could be of help. Do let me know if youd like us to write about any other topics of your
preference.
Do keep coming back.
Cheers.
Zepo
Hi Pravin,
For non-registered businesses, PayU Money is the appropriate payment gateway. And for which
you dont need a business registration. You just need a Savings bank A/C and your personal PAN
Card.
Although, COD is extended by logistics companies and not payment gateways. All courier
companies like FedEx offer COD services at additional cost. Delhivery, another courier company,
also offers cash-berfore-delivery services.
Although no registration is needed to ship products and use COD feature, VAT/TIN registration is
suggested. Without the requisite shipping forms and company registrations, the shipment can get
seized at state borders due to stricter regulations.
Hope this helps. Attaching reference links below:
1. PayU Money: http://www.zepo.in/blog/2013/02/04/ecommerce-websites-payu-money-

payment-gateway-for-indivi/
2. Delhivery: http://www.zepo.in/blog/2013/02/19/delhivery-cash-before-delivery-payment-
option-for/
3. VAT Registration: http://www.zepo.in/blog/2015/05/29/vat-registration-simplified/
pravin
Thanks for reply.
I just want to sell things in one state. Then no needed to registration, correct ?
Zepo
Hi Pravin,
No, no registration will be needed. If your turnover does cross 5 lacs annually, youll need a VAT
registration then.
Zepo
Hi Abhimanyu,
Thank you for the compliment. We are glad that you found the articles useful.
So to start an online store you do not need a business registration immediately. However it is
recommended that you get one eventually.
FedEx is definitely a good option for shipping and PayU is a good payment gateway. At Zepo we
have tie ups with both of these companies and we provide low rates and complete for the same.
Take a look at http://www.zepo.in/blog/2014/02/06/zepo-avn-logistics-extensive-pincode-
coverage-lowest-logistics-rates-ecommerce-businesses/
If you want to know more about it, please share your contact details with us and we will be happy
to call and help you in the process.
You can also get in touch with us support@zepo.in or call us at 9223583358.
Zepo
Thank you for the compliment. You can go these marketplaces and find the vendors who are selling
them. Once you give them an idea about the platform, you can try and get them onboard.
The investment will depend on the scale and magnitude of your business.
Zepo
Hi Sandeep,
You can get your company registered and get a certification of encorporation municipal licence.
Since you will bedealing in food products, you may also need a FSSA certification.
Zepo
Hi Abinath,
When you say sell via Facebook, do you mean on a facebook store and collect online payments, or
just post on your facebook page where people people can send an enquiry and you collect
payments from them personally via net banking?
So in case yours is the first scenario- you will need to set up a Payment Gateway which will require
business registration unless you for PayUMoney.
In the second scenario, no you do not specifically need to be a registered business.
In both cases, if you get a business registered, you only have to pay taxes once your turnover
crosses 5 lacs or 10 lacs per month, depending on the state you register your business in.
We can probably help you better, if you share you contact details as in your phone number and
email ID with us.
Also you can write to us on support@zepo.in or call 9223583358.
Zepo
Hi Anju,
So to start an online business you do not require your business to be registered. You can even get a
PayUMoney Payment Gateway to accept online payments. For this you just need a savings account
which can be your personal bank account.
If have any more questions or need advice about selling online, please share your contact details
like email ID and phone number with us.
You can also get in touch with us at support@zepo.in or call us at 9223583358.
Zepo
Hi Rohan,
To answer your questions,

1. You will need a Certifiacte of incorporaton or municipal license.
2. Yes you require an FSSA
3. Yes you would require a store house for grains.
Zepo
Hi Rahul,
Even if you dont have an office address, it is advised that you get your business registered. You can
use any local address for the same. It need not be a commercial space.
Zepo
Hi Ashis,
You are most welcome. We are glad that you found the article useful. To answer your question, you
can take the shops and establishment licence at any one municipal sector.
Zepo
Hi Sachin,
Thank you for the compliment. We will be very happy to help you with some tips regarding
marketing and selling online. You can check out our Ebook here http://www.zepo.in/ebook.html.
Also, if you share your contact details with us, as in your email ID and phone number, we may be
able to help you further.
Zepo
Hi Amrik,
We do not know of a good CA as such in South Delhi. But you can check out
http://www.vakilsearch.com. Probably you can find someone there.
Zepo
Hi Shakeel,
To sell with Amazon.in, you will require a business registration. Without a business registration,
you cannot sell on Amazon as a seller. But, you can sell on Ebay and Snapdeal without one. Also if
you want to expand your business, you may also want to consider the option of creating your own
online store. We hope we helped. I
Zepo
Hi Sonam,
So regarding listing and classified, we will not be able to give you the information. It is not our area
if expertise. You may want to get in touch with a CA or a lawyer who may be able to help you with
the same.
Regards
Zepo
Hi Ashish,
This is not a general case. Sometimes people have an offline and online business with the same
registration and they use one name to register. Also at times the brand name is not decided or it is
changed after registration.
Zepo
Hi,
Thank you for writing to us. We look forward to you joining Zepo for your business.
Regarding getting registered in another city, you can probably get a business address in Bangalore,
and get registered with your business address there. Or as you said your cousin lives in Bangalore,
you can register from his address. You will have to check into the Municipality of the respective
cities for further information and procedure for doing the same. We hope we helped. Feel free to
get in touch with us if you have any more questions.
Zepo
Hi Uzair,
You can absolutely start selling your items online. Authentic furniture and dry fruits are much in
demand.
The store room you have can be the registered office address and it can even serve as the
warehouse and pickup address for all products you would like to deliver.
So, to start start your online website, you do not need any sort of registration. If you would like to
share your details with us, we will get in touch with you and help you with the same. You can even
contact us on support@zepo.in or give us a call on 9223583358.
However, we would recommend you to get your business registered soon. This will ensure smooth
delivery of your products to your customers. You can get your business registered as a Sole
Proprietorship or an One Person Company.
We hope this answers your questions. Do get back to us on the aforementioned number and email
ID if you have any more questions or doubts.
Zepo
Hi Raju,
You can go ahead and sell. But since it is a service industry, we would recommend you to get your
business registered and obtain a TIN number.
Zepo
Hi Satyen,
Yes you surely can apply for PayUs international PG with a business registered as a Sole
Proprietorship.
Zepo
Hi Jay,
To start an online business you can register as a sole proprietorship or one person company to
begin with. However you can start you online store even without an unregistered business.
Zepo
Hi Tushar,
We are glad that our knowledgebase was helpful.

So since you already have a registered offline business, you can sell online, with the same
licence/registration.
To answer your question-
Nowadays, you do not need separate VAT and CST numbers. You can just apply for one number
which is the TIN/VAT/CST. With this, you can sell your products all over India. With a business
registration and VAT/CST/TIN number, you are all set to start an online business. If you have any
questions regarding selling online, kindly share your contact details and we can assist you with it.
You can also give us a call on 9223583358 or drop us an email at support@zepo.in for any
assistance.
Zepo
Hi Gurnoor,
If you want to sell on marketplaces like Flipkart, Amazon, Snapdeal, then you will need a VAT/CST
number. However, you can sell on Ebay, without a VAT/CST. But if your turnover crosses 5 lac per
year, then you will have to get your business registered and obtain a VAT/CST number.
If you are interested in starting your own online business, then you can sell online without a
VAT/CST. But if your turnover crosses 5 lac per year, then you will have to get your business
registered and obtain a VAT/CST number.
Zepo
Hi Dhiraj,
If you would like to create your own website, kindly share your details with us and we will get in
touch with you. You can even contact us at 9223583358 or email us at support@zepo.in.
Zepo
Hi Seema,
To answer your questions,

You can start an online store before you register, but once you do that, we recommend you start
the registration process.
You can use your house as a warehouse, but for food you will need to comply with the safety
procedures laid down by the FSSAI.
Cash on delivery is a good model to start with and you can slowly move into online payment
depending on the response. However, COD charges are slightly higher which you will have to
include in the price of your products or bear it your self, depending on your business model.
We will be able to help you further, if you could share your contact details, as in email ID and phone
number with us. We will get in touch with you and advice you on all matters you have mentioned.
If you wish, you can drop us an email on support@zepo.in or call us on 9223583358.
Zepo
Hi Mohamed,
Thank you for writing to us. However, we recommend you to get in touch with Flipkart directly for
the answer. Since, they will know about their onboarding procedure the best. Also, if there is a
workaround theyll be able to guide you through it.
Zepo
Hi Sankalp,
So with the kind of company you want to start you can register as a Private Limited Company.
Regarding the government regulation, we are not sure as it is not our expertise.
vigneshwaran pitchai
Hi Sonali,
If you are starting a new business , Dont worry, Just connect with
http://www.vakilsearch.com/company-registration-private-limited-company-india
thats right place to complete your legal process on time.
you need a website to promote your business for increase the daily lead or call.
Contact any digital marketing expert or digital agency to promote your website.
Zepo
Thanks Vigneshwaran.
Zepo
Hi Rukmini,
Thanks for the compliment. So we do not have expertise on what business registration and other
pre-requisites you would need for a crowd funding platform. However you can use BillDesk as a
Payment Gateway. Also you can get in touch with a similar platform http://www.rangde.org/ for
details about the same.
We hope we helped. Thanks for writing to us.
Zepo
Hi Sonali,
We are glad that you like our work and it was useful for you. To answer your questions
1. Tuition classes can be registered under the Shops and Establishments Act.
2. Freelancers are usually selected based on their portfolio and how compatible it is to the nature
of service required.
3. So marketing can be broadly classified into offline and online marketing.
For offline marketing you can attend an event which deals with classes and tuitions and network
there to spread the word about your business. You can even get in touch with educational
institutes and companies whose members may need the kind of courses you are offering to better
their skiils. You can either organize an event at these places or pitch the idea to the administration
and they can inform their members.
For online marketing you can invest in google adwords, facebook advertising, start a relevant blog
about your field or guest post on relevant blogs.
4. Educational institution startups are not our area of expertise. We would recommend you to
contact an existing educational institute for the same.
We hope we helped. Thank you for writing to us.
Zepo
Hi Saba,
Since Payment Gateways deal with a lot of sensitive information, they need to take certain
measures.
As PayU Money works on the buyer seller protection model. In order to capture and keep a record
of the details, it is mandatory for the customer to register on Pay U Money website. Hence it wont
be possible to remove the mandatory sign up.
In order to incentive the customers to register on the Pay U Money website, they are giving the 2%
off.
Hope this helps.
Zepo
Hi Sankalp,
Whether you need a registered business or not depends on the marketplace you are selling at.
1. For instance, to sell on Flipkart, Amazon and Snapdeal, you need to be a registered business.
2. For selling on Ebay, Shopclues etc, you do not require a business registration.
So Sankalp, you can begin by selling on the latter 3 marketplaces till you get a business registration.
Another way to start your business and get better returns is to open your online store. For opening
an online store you will not be required to have a business registration. You can even receive online
payments from your customers via a Payment Gateway. Also marketplaces charge a fee every time
a seller buys from you. With an online store that wont be the case. If you have any questions you
can give us a buzz on 9223583358 or write to us on support@zepo.in. If you share your details with
us, we can get in touch with you.
Zepo
Thank you for the information Kiran.
Aakash
Hello Zeppo Team,
This post is amazing.
I would really like to know the kind of licenses required to start an online Food Delivery System in
India, if I am planning to make the food via different restaurants and also home chefs.
Could you please give me a Contact number so as to talk to you directly about a few things.
Thank you very much for your time.
Zepo
Hi Aakash,
We are glad that you liked the post and found it useful. The way food delivery works is different
than other Ecommerce businesses. You have to follow the guidelines of the Food Safety and
Standards Act ( FSSA). However, for information regarding Food Delivery systems in India, we
would recommend you to get in touch with an expert or experienced person in the field. We have a
couple of food delivery businesses on our platform. You can get in touch with the owners.
Gurmeet of http://www.spicebox.in/
Janice of http://www.thegourmetbox.in/
Rahul of http://chandnichowkfood.com/
Nirav of http://veggies.co.in/
Ankit of http://level7.co.in/.
If you need any more information, feel free to contact us on support@zepo.in or give us a call on
9223583358.
Zepo
Hi Sowmya,
Congratulations for your business registration! It is a big step taken.
Selling jewellery to customers in United States is completely an option with Zepo.
With Zepo, you get a free PayPal integration which is an international payment gateway. You can
check out our blog for more information about the same.
http://www.zepo.in/blog/2014/06/24/sell-international-paypal-the-free-international-payment-
gateway/
We do provide international logistics. As long as the pickup is within India, you can deliver to
customers in the United States. We also have a blog providing more information about the same.
http://www.zepo.in/blog/2013/07/19/fedex-international-logistics-support-for-zepo-powered-
online-stores/
We have shared you email ID with which you have registered on Disqus with a team member who
can help you with any other questions you may have. You can also feel free to connect with us on
support@zepo.in or call us at 9223583358.
Zepo
Hi Venkat,
We are glad that you liked the post. You can use PayU Money Payment gateway for an
unregistered business. All you need is a savings account in a bank and you are all set. You can check
out our blog about PayU Money for further reference.
http://www.zepo.in/blog/2013/02/04/ecommerce-websites-payu-money-payment-gateway-for-
indivi/
Zepo
Thanks for dropping in your reference Kiran.
Zepo
Hi DF,
You can reach us at 0922 358 3358. And we definitely will help you along with your doubts.
Zepo
Hi Swathi,
To answer your questions, no, you dont need to register your company separately as an e-
commerce website too. The general licenses and registration of a sole prop. business apply to you.
So you can get the same and start off happily.
All the best for your venture.
Zepo
Hi Manas,
Thank you very much. We are glad that you enjoyed reading the article.
An online book business is a great idea.
To start an online business with COD, you do not need any legal formalities or registration to start
your company. All you need to do is open an online store, team up with a logistics provider and start
selling. With us you can do the same and you can use Fedex for all COD shipment! You can write to
us at business@zepo.in or call us on 9223583358.
However, when your business reaches an annual turnover of 5 lakhs, you will have to start paying
tax. If you are selling within the state it is VAT and if you are selling to other states you have to pay
CST. For the taxes, you will need to register your company.
Hope the information helps.
Zepo
Hi Khalid,
To answer your question,

whether you need TIN/TAN number to start selling online depends on the kind of company
registration and the annual turnover of your company.
For a company registered under aSole Proprietorship, you will need a TAN number only if your
annual turnover exceeds Rs 1 Crore.
However, we will recommend you to contact Flipkart at sell@flipkart.com, Snapdeal at

sellersonboarding@snapdeal.com and Amazon at
http://services.amazon.in/standards/contactus.html, for more information about their
requirements and policies.
Zepo
Hi Ramit,
Like you already know, VAT is mandatory only when the gross turnover exceeds 5 lakhs. So if you
are selling products, any products for that matter, you dont need to register for VAT/CST until
your turnover crosses 5 lakh annually.
Zepo
Hi Anindita,
We suggest you rather go in for a One-Person Company Registration instead of a sole prop.
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/
Since you will be a service based company, youll need to register for Service Tax. 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.
amount received towards taxable services.
Hope this helps
Zepo
Hi OM,
Just answered that question above. Hope it helps. Do let us know if there is anything else we can
help you with.
Zepo
Hi Milan,
Every marketplace has different requirements to register sellers.
For SnapDeal and Flipkart they are as follows:
Flipkart:
1. You need to register as a seller on Flipkart here to start off selling https://seller.flipkart.com/
2. There are no listing charges on Flipkart. Flipkart collects amount from the buyer when he makes
a purchase. This amount includes the price of the item and the shipping cost.
3. Followed by this, as a selling commission, Flipkart deducts a percentage of the item price plus
shipping charges plus a fixed per-item fee. This is applicable to all items sold.
4. For more registration details, you can mail them on sell@flipkart.com
SnapDeal:
To sell on Snapdeal you need to fulfill the following criteria :
1. You should be authorized to sell in India.
2. You can only sell new & genuine products through Snapdeal.com.
3. You can be any of the following: Manufacturer, Wholesaler, Distributor, Retailer.

4. Listing of products on Snapdeal.com is free. Snapdeal does not charge anything to you for listing
your catalogue online.
5. You pay a commission for what you sell. The commission structure is shared and agreed with you
at the time of registration.
For more details, you can mail them on: sellersonboarding@snapdeal.com
Hope this helps.
Zepo
Hi Abhinav,
There are no business registrations required to start an online store with Zepo. So you can go
ahead and start the 14 day free trial right away. You can also call us on 922 358 3358 to know
more.
Zepo
Hi OM,
As for our understanding these codes are for products sold worldwide and provides real time
information on quantity sold, store traffic pattern, and inventory and ordering information. Like for
books, etc.
This is not essential for businesses just starting out much like yourself. You can definitely give this a
miss.
Zepo
Hi Sonali,
As much as wed like to be help, we must admit that this is not our expertise. A CA would be the
best person to guide you through the taxation of sole proprietorships.
Wishing you the best in your venture. Do let us know if there is anything more we can do for you.
arehman
Hi, I wish to set up an eCommerce business based in bangalore as a sole proprietorship selling
products all across India to sale women clothes (garments). I wish to sell from my house. So what
are the registration required.
Note: i dont have any shop would like to sale from home. Pls help me
Zepo
Hi there,
For starting any business , you need a valid license like License under Shop and Establishment Act
(Basic) or Incorporation Certificate for Companies, etc.
A sole prop. registration certificate should be more than enough to start off your business.
Hope this helps.
Zepo
Hi AT,
Answering your queries below:
For starting any business , you need a valid license like License under Shop and Establishment Act
(Basic) or Incorporation Certificate for Companies, etc.
Now, to get into the business specific registrations:
For a home decor start-up:
1. You can register your company as a sole prop. or a one-person company (OPC). More about the
OPC here http://www.zepo.in/blog/2014/11/08/a-to-z-about-one-person-company-
registration-in-india/
the VAT schedule.
For the spicy powders business:
1. You will require a food license under FSSA.
2. Company registration and VAT pre-requisites would be as above.
Hope this helps. Please feel free to write back in case of any other doubt. More than happy to help.
Zepo
Hi Prashanth,
1. For starting any business, you need a valid license like License under Shop and Establishment Act
(Basic) or Incorporation Certificate for Companies, etc
exceeded 1 crore.
within 30 days.
the VAT schedule.
required.
registered firm.
Hope this helps.
Zepo
Hi Prashanth,
exceeded 1 crore.
within 30 days.
the VAT schedule.
required.
registered firm.
Hope this helps.
Zepo
Hi Raj,
You dont need to register a new firm to start an online business. Your current business registration
should suffice for all requirements of an online store.
Below are some taxation guidelines for an online business:
exceeded 1 crore.
within 30 days.
the VAT schedule.
registered firm.
Hope this helps in some way. Do let us know if you have any more queries.
Deepak
Dear OM, please contact (9827025533) is you want to sell your product online
123
Hi zepo,
I have a query that companies like indiamart, justdial, zomato etc need to be registered as they are
not charging their customers but just helping them.
if they need to be register,then what is the process of registration?
Please explain briefly.
Zepo
Hi 123,
These companies need to register as they are businesses making a profit or loss. Although these
companies list other companies, they still make money through advertisements. Hence they have
to be registered.
Thatll very depending on the type of business registration. For a sole proprietor the process has
been mentioned above.
Hope this helps.
Zepo
Hi Neil,
1. You can register your company under S&E, although it is not mandatory.
2. Yes, you do need to register for an IE Code to export products. You can read more about it here:
http://www.zepo.in/blog/2013/11/07/sell-international-how-to-obtain-an-import-export-code-
iec-at-zep/
Hope this helps!

Zepo
Hi OM,
Thanks for writing in. Answering your questions below, one by one;
1. You can either register your business as a sole prop. or as a One Person Company (OPC). You can
read more about the OPC here:
And you can later convert this into a Private Limited Company once your business grows.
2. You need a business incorporation certificate to start selling online.
3. Oh definitely yes. Thats the beauty of ecommerce. Regardless of where you live and work, you
can run a very successful online business.
All the best. Hope we answered your queries well.
Zepo
Hi Neeraj,
Answering your questions one by one:
1. Tax formalities to sell products online:
1.1. For starting any business , you need a valid license like License under Shop and Establishment
1.2. TAN no. is not mandatory for Sole Proprietors unless your turnover in the previous financial
year exceeded 1 crore.
1.3. 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.
For selling on marketplaces, the only pre-requisite is to have a registered business.
2. Formalities would include a Shop and Establishment Act if you are planning to sell from a
physical shop and if you plan to employ people.
3. The type of business registration would depend on your needs. But given that you plan to start a
business with your brother, we suggest you go in for a Limited Liability Partnership or a
Partnership Firm,
4. If you use your Savings account, that will be counted as your earning and you will be required to
pay Income Tax on it. However, using Savings or Current account will depend on what kind of
business registration you opt for. If you are going in for a Sole Prop., then a Savings bank account
should suffice. However, for any other type of business registration a Current account is
mandatory.
5. No. 1.3. 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.
6. VAT percent differs from state to state. And CST is nothing but VAT when applied for inter-state
selling and shipments.
7. For inter-state selling, you are required to pay the Central Sales Tax i.e. CST.
8. To start with, 4 copies of the tax invoice are needed for every shipment. Apart from that, you can
find more about shipping forms here: http://www.zepo.in/blog/2014/03/20/mystery-behind-
shipping-forms-busted/
9. Those taxes will still be paid by you. But you will have to pay it on your end.
As for your questions related to Zepo, have forwarded them to my team member. She shall respond
to you likewise.
Zepo
Hi Sudhir,
Apologies for the late reply.
1. No, essentially permissions to sell each brand are not needed. But if you want to secure your
customers, it is advisable to register yourself as a seller with the brand just in case there are
problems with the product sold.
2. As of now, the Shops and Establishment certificate will be enough. VAT is needed only once you
cross 5 lakhs in annual turnover.
Hope this helps.
Jinesh Mehta
Hello Sir,
You can go ahead with Private limited company or Limited Laibility Partnership firm. However
according to my opinion you should go with LLP as it is cost & tax effective tool for new start up
firm. Moreover Private limited companies have many stringent provision to complied with due to
Companies Act 2013. I would certainly like to advise you on registration part. You can contact me
on my email id. It is cajineshmehta@gmail.com. Thanks.
Zepo
Hi Jesin,
Thanks for the update. Its been fixed.
Zepo
Hi Jaideep,
We suggest you either start a limited liability partnership firm or a private limited firm. However, a
choice between the two will depend on your requirements as well as your liability demands. We
suggest you get in touch with a CA and understand it better before going ahead with either.
Zepo
Hi Varkat,
Apologies, but we dont have the expertise in this domain. We suggest you get in touch with a
lawyer or a CA, who would be the best person to guide you through this process.
Zepo
Hi Mukul,
Youre attempting to offer services on the web. We are passing on your request to our Business
Development team, wholl be the right people to guide you with this.
MyOnline CA
HI Hanshi@ Just Visit http://www.myonlineca.in for register your propritorship or opc and taking
tin number.
Zepo
Hi Sonali,
Answering your questions, one by one:
1. Online and ecommerce business are the business, and the two terms are used inter-changeably.
2. You can legally register a company either as a sole prop. or even as an OPC now. Below are the
links, to help you figure out each of these company registrations:
Sole Prop: http://www.zepo.in/blog/2012/09/14/registering-an-e-commerce-business-in-india-
sole-proprie/
OPC: http://www.zepo.in/blog/2014/11/08/a-to-z-about-one-person-company-registration-in-
india/
3. Yes, registration is essential to sell on all these marketplaces. You should be able to get detailed
seller registration procedures on the respective online marketplace websites.
You can read more about them here: http://www.zepo.in/blog/2014/07/09/sell-on-multiple-
online-marketplaces-from-a-single-dashboard-with-zepo/
4. If you go in for a sole proprietorship business registration, you can pay taxes on the same PAN
card. However, for an OPC registration you and your business are different entities, hence the
taxes to be paid will be separate for both you and your company.
Hope this helps.
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. Its easier and much more
flexible than a partnership deed.
2. Since you didnt 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 neednt worry about licenses and taxes from the
previous venture. It shouldnt affect in any way.
Hope this helps. Thanks for your generous appreciation! The team is grateful.
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. Heres to get you started:
2. Yes, you most certainly can. You can find out more the OPC here:
http://www.mca.gov.in/MinistryV2/OPCfaq.html
3. We dont 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:
4.5. Other licenses required for Proprietorship are Profession Tax or any business specific licenses
required.
Hope this helps.
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
Zepo
Hi Hanshik,
In the first case, yes, you most certainly can go ahead and register for your TIN number.
However, we dont have much knowledge about the trade license being provided by GHMC.
Zepo
Hi Mahendra,
This is a kind of business model that we dont cater to, unfortunately. You can however get in touch
with individual web developers to build you a custom website on similar lines.
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
Zepo
Hi Raj,
We dont have much expertise in starting business as per the marketplace model. But well 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.
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.
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/
2.2. Service Tax Registration is applicable only for Service Providers only. If during a financial year
within 30 days.
3. Dont 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 dont 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 doesnt
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 dont
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, wed 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.
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 dont need to rent a corporate or
office space for the same.
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 its 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.
2.3. 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 Infoappreciate 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
Zepo
Hi Sanjay,
You can go ahead with a sole proprietorship registration or better still, go in for an OPC
registration. OPC stands for One Person Company registration and is similar to registering a Pvt.
Ltd. firm. You can find more details about the same here: http://www.zepo.in/blog/2014/11/08/a-
to-z-about-one-person-company-registration-in-india
Zepo
Hi there,
You are free to start your own web design business as you please. As long as you dont 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 youre 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.
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.
Zepo
Hi Maharshi,
Its a good idea to start with online marketplaces before starting your own online store. Itll help
you test the waters before you start investing bigger money.
So every marketplace will have its 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.
Zepo
Hi Sarvesh,
From what we understand you are trying to start an affiliate ad network. Apologies, but we dont
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.
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.
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.
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.
Zepo
Hi Prannoy,
Thanks for dropping by. Would love to be of help. Please find answers to your questions below.
1. You dont need to register your website as a company. But you do need to register a company
since youre 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
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
the VAT schedule.
3. A Shops and Establishment act may be required in your case, but wed 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 dont have much of an idea about this. Apologies.
Hope this helps.

Zepo
Hi Jaspreet,
Thanks for writing in to us. Wed try and do justice in answering these questions:
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.
the VAT schedule.
Hope this helps.
Zepo
Hi Jan,
Apologies, but we dont 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.
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.

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.
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
Wed 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.
Zepo
Hi Aarti,
We dont 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 companys 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
Companys name.
Hope this helps.

Zepo
Hi Yuvi,
Didnt quite understand the question. Could you elaborate a bit so we can help you with the best
answer?
Farzana
Hi Zepo,
Ive 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 its possible could you help me out on my e-mail address?
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.
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 therell 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:
exceeded 1 crore.
within 30 days.
4. VAT is mandatory when the gross turnover exceeds 5 lakhs.
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 Ive 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
Lets say Im 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.
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.
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
petrochemicals share capital shall be held by reliance industries. The parent company can
recommend directors to the subsidiary companys 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 fathers 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.
Its been up and running since 35 years, so we have all the licences required. Its a Pvt Ltd limited.
(Run by my father)
Now, Im 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 fathers 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!
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 dont. 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 thatll 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 dont end up paying for it from your own pocket.
Hope this agrees with you.
Zepo
Hi Srinivas,
Thanks for your generous appreciation. Wed 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 thisll 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 dont 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
2B. TAN no. is not mandatory for Sole Proprietors unless your turnover in the previous financial
2C. Service Tax Registration is applicable only for Service Providers only. If during a financial year
within 30 days.
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/
Weve 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.
Zepo
Hi Ankit,
Thanks for dropping by. However, wed like to confess that we dont possess the complete
expertise to be answering these questions. And in the event, we do mislead you, wed suggest you
get in touch with a lawyer whod be better equipped to help you along.
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
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, youll 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, youll 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. youll need to file tax returns separately.
Hope this helps. If youd like more detailed answers, please feel free to write back to us.
Ankit Bidani
Hi Zepo Team!
Thanks for helping us all. Im 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 dont have any business or shop. We dont 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.
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.
Zepo
Hi Srinivas,
You dont 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:
exceeded 1 crore.
within 30 days.
3. VAT is mandatory when the gross turnover exceeds 5 lakhs.
(Say if Food industry then, License under FSSA).
As such for general business only these are the required.

Hope this helps.
Zepo
Hey Vaibhav,
Glad to know youre planning to give Zepo a shot for your online store. Wed be glad to have you
onboard.
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.
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 wholl 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
youd like to know.
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 dont 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 lets 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 hubbys 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.
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
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 dont 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/
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.
Its 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
Zepo
Hi PS,
Since you are going to be selling electronics online, wed 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.
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
Zepo
Hi Imran,
Have sent you the same. Please have a look at it.
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
Zepo
Hi Sam,
Could you help us with what agreement are you looking at? Logistics or for payment gateways?
Meanwhile, if youve any more concerns, please free to call us on 922 358 3358.
Sam
We have registered pvt ltd company,send us agreement
Zepo
Hi Maaz,
Income Tax needs to be filed for every single penny that finds its way into your account. Which
would mean youll 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.
Zepo
Hi Maaz,
Its 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?
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, wed
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 youll 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 youd 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 ccavenues 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 , 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.
Zepo
Hi Rajnish,
You dont 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 dont think youd be needing any more licenses upfront.
As for the legal procedure for applying for a sole prop. , youll need to head to your local municipal
office and theyll 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
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? :p
Arvind
Can you please send me the sample vendor agreement to arvindfeb23@gmail.com.Thanks in
Advance.
Zepo
Hi Arvind,
Weve 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.
Zepo
Hi Arvind,
Weve sent the same to you. Please do have a look at it.
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.
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/
exceeded 1 crore.
within 30 days.
the VAT schedule.
Hope this satisfies your concerns.
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 websiteWhat is the registration,annual tax

formalities to complete before starting?Can you help me by giving some information?
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.
Zepo
Hi Charan,
You dont 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
Zepo
Hi Vishnu,
You dont 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:
exceeded 1 crore.
within 30 days.
the VAT schedule.
Hope this helps you.

Zepo
Hi Kiran,
We are not really sure about tax slabs, but wed do our best to pass on the taxation information we
do possess.
exceeded 1 crore.
within 30 days.
the VAT schedule.
required.
registered firm.
Hope this helps.
Zepo
Hi Kiran,
VAT is mandatory when the gross turnover exceeds 5 lakhs. However for imports registration is
the VAT schedule.
If your annual turnover is less than 5 lakhs, you need be worrying about VAT just yet.
Zepo
Hi Tridip,
You can start without a license for now, if youre starting from home..
Zepo
Hi Tridip,
You can start off now without any particular licenses. However, when your business starts to grow
youll need to get your hands on licenses like VAT and Shops and Establishments, etc.
Zepo
Hi Prateek,
Thanks for the clarification. In such a scenario, a Shops and Establishment is not needed.
Zepo
Hi Raju,
Apologies for a delayed response. We were trying to figure out within the team before giving you a
definite response.
Although youll 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 dont 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.
Zepo
Hi Varun,

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.
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.
within 30 days.
the VAT schedule.
6. A company registered, the registration is valid pan india. You need not register it again.
Hope this helps.
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.
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 doesnt 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.
Zepo
Hi Prateek,
Once a company is registered, the registration is applicable pan India. You wont 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??
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. Im 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.
Ive 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 Ill 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 !
Zepo
Hi Rahil,
Thats 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
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.
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.
Zepo
Hi Balaji,
Unfortunately, we dont have anything specific to states. Apologies for the same. But our other
readers may have something. Opening your comment for further discussion.
Zepo
Hi Rajiv,
You just need to register your company when registering an ecommerce business. You dont need
to register your website while doing the same.
You can go in for a payment gateway even if you havent 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!!
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?
Zepo
Hi Rohit,
Dont 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.!!
Zepo
Glad to be of help Ajay!
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Registration of VAT in India
What is VAT registration ?

If one is trading in goods and his
turnover exceeds prescribed threshold limit. One is required to get registered
under VAT authority. Our specialized team make sure that all the compliances
are being fulfilled in successful VAT registration.
What documents are required for VAT registration ?
How much time is required for VAT registration?
Normal time to
Register VAT in India is 7 working days time.
Need Help?
Tax Accounting Services
Call : 7838533488
Email : taxservices31@gmail.com
http://taxaccountingservices.blogspot.in/
Anil
I want to start e commerce busines
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.
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.
Zepo
Hi Abhiroy,
Have sent you the same. Please have a look.
Imran Sheriff
Please share a copy, fizaaal@gmail.com ,
Thanks..
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?
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
youd like like with the same, we suggest you get in touch with a lawyer.
Having said that, please feel free to ask us whats on your mind. Well do our best to help you.
chidambaram
Hi zepo team I need some info about starting omni channel business can you help me
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
Zepo
Hi Puneet,
Have sent you the same. Please do have a look at it.
Abhijit Roy
Hi,
Will you please share me a copy . abhiroy.me@gmail.com
sunayana
Hi,
Could you please send me a copy of vendor agreement as well at sunayanasj@yahoo.com
Zepo
Hi Sunayana,
Have mailed you the same. Please do have a look.
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, wholl 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.
exceeded 1 crore.
within 30 days.
the VAT schedule.
required.
registered firm.
Hope this helps.
Zepo
Hi Jyoti,
Weve 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
Zepo
Hi Arvind,
Have sent
Zepo
Hi Arvind,
Have sent you the same on arvindfeb23@gmail.com. Do have a look.

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 wouldnt like to provide you with the wrong
information. Hope you understand.
Kamran Abdul Aziz

Ooops Okay, No issues!
Ill 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 dont 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 vendors agreement also? Please send me at jyotig79@gmail.com
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 dont 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 dont 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 dont
have an shop & neither do I need one)
Theres 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
Zepo
Hi Ismail,
We are listing below the licenses required in general for starting an online business.
exceeded 1 crore.
within 30 days.
the VAT schedule.
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 .
Zepo
Hi Rajiv,
exceeded 1 crore.
within 30 days.
the VAT schedule.
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
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
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
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
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
4. VAT is mandatory when the Gross Turnover Exceed 5 Lakhs, however for Imports registration is
mandatory when it exceeds 1 Lakhs.
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
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.
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.
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.
Zepo
Hi Aashish,
Apologies but we dont 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.
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 mothers name as a sole trader and she has no other taxable
income.
What are the tax implications of this business?
Zepo
Hi Aryan,
The registrations will depend on what type of what type of business registration youd 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 dont 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
4. VAT is mandatory when the Gross Turnover exceeds 5 Lakhs, however for Imports registration
is mandatory when it exceeds 1 Lakhs.
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?
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?
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
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 dont need any online
payment gateway for that.
So what are the legal procedure i have to follow. I dont 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.
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?
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 shouldnt 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
Zepo
Hi SNP.
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 youll 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 owners 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
Zepo
Hi Sunil,
1. You dont 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.
cross 9 Lakhs of Turnover for Service Provided, then he has to take registration within 30 days and
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 doesnt
exceed 5 lacs.
Hope this clarifies your concerns.
Zepo
Hi Kanduri,
The registrations will depend on what type of what type of business registration youd 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 dont need to register for this, just yet.
cross 9 Lakhs of turnover for service provided, then he has to take registration within 30 days and
4. VAT is mandatory when the Gross Turnover exceeds 5 Lakhs, however for Imports registration
is mandatory when it exceeds 1 Lakhs.
require
d.
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 wont 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 its 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
Zepo
Hi Pranav,
1. Youll 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 youll 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 cant 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, thats possible.
Hope this helps.

Waquar Sarwar
can a sole proprietor open its branch office in other states in india.
Zepo
Hi Waquar,
You most definitely can. Its 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,
Ill tell you me scene.
Im 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
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.
required.
Hope this helps. Do let us know if youd like any more info.
Atul Kamble
what about Central Sales Tax?
adarsh
Hi Team Zepo
I want to open a sole proprietorship business in Motihari,Biharplease help me for that.
Zepo
Hi Adarsh,
You will need to go to your nearest municipal corporation office and apply for the same. Its a
rather simple process and inexpensive as well.
Zepo
Hi Neelam,
1) When you start working as an individual, you dont 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 youre operating out of.)
2. We dont have the information about licences youd 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.
Zepo
Hi Niky,
Wed 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.
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.
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..
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.
Zepo
Hi Vinay,
You can definitely go ahead and setup an e-commerce portal as a sole proprietorship. There are no
restrictions whatsoever. Its 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.
Zepo
Hi Aniket,
You definitely can start a publication house as a sole proprietorship. However, we also do suggest
you take a lawyers 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
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.
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 dont 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.
Zepo
Hi Ani,
Your questions are a legitimate doubt. To answer your questions one by one:
1. No, you dont require any particular license in Bangalore or any other city in India, to sell online.
2. No, you dont 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 dont 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 youd 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.
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 dont have any registered company ..What will i do,i will treated as illegal.
Zepo
Hi Ravi,
Even if your online store in not registered, it still wont 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 cant 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 cant 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
Zepo
Hi Bhawni,
Sorry but we dont 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
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 its 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.
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?
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.
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 Im working with some IT company so want to open firm
in my Mothers 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.
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 dont have a ready checklist for the list of documentation you may need.
Hope these answer help. Do let us know if youd 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
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 arent 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.
Zepo
Hi Brijesh,
Glad you found the article to be of use. As for your queries, wed suggest you get in touch with a
lawyer to guide you with the taxation that will be applicable for your business. Since youll be
providing a service, the taxation rules will change.
If you have any other questions, please feel free to ask. Wed 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?
Zepo
Hi Abhytan,
Glad you found the article to be of help. However, we wouldnt 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
Zepo
Glad we did, Shilpa!
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Registering an e-commerce business in

Let us begin with understanding what a sole proprietorship has to offer.

Registration of Sole Proprietorship

1. Recommended-Shops and Establishments Act:This registration would be needed incase you

Doing Business in India

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Apurba Deb Nath

Great post! We will surely share it!

Hope this helps

Hope this helps.

Hope this helps.

You can refer go this article

Hope this helps

You can refer go this article

Hope this helps

Hope this helps

Hope this helps.

No, you wont be needing one in that case.

You can check it out here: http://www.zepo.in/blog/2015/06/11/want-to-start-a-business-and-

Hope this helps.

In PayUMoney, they deduct the Tax along with the TDR.

Hope this helps.

Do let us know if we can help you in any other way.

Waiting for ur valuable reply..

Hope one of our readers can help you.

Hope this helps.

There is no need to trademark your website, etiher.

Hope this helps.

Answering your questions below:

Hope this helps.

Do let us know if we can help you in any way.

Answering your questions below:

Hope this helps.

Hope this helps.

A shops and establishment registration is required for setting up an offline establishment.

Hope this helps.

Hope this helps.

Here is a list of licenses youll be needing:

Hope this helps.

Hope this helps.

You do not require any special licenses.

Hope this sells.

Answering your questions below,

Hope this helps.

Hope this helps. Attaching reference links below:

1. PayU Money: http://www.zepo.in/blog/2013/02/04/ecommerce-websites-payu-money-

In the second scenario, no you do not specifically need to be a registered business.

To answer your questions,

We are glad that our knowledgebase was helpful.

To answer your questions,

So you can get the same and start off happily.