Dear Sir,
To start an online business which shall have transactional revenue, the following registration are required:
1. Company or LLP Registration
While starting an online venture it good to have a private company or LLP to have limited liability protection and improve the ease of doing business. Having a company or LLP would ensure that opening of bank accounts in the name of the business or obtaining a VAT/Service tax registration are easy and fast. Almost all marketplaces allow Proprietorships and Partnership firms to sell on their website. However, there would be no limited liability protection in case of a litigation. Hence, it is best to start selling with an LLP or Private Limited Company.
However, Most people decide to open a private company to substantiate any online activity and this article would cover that aspect alone. To incorporate a private limited company one must approve its name, registered office address, have at least 2 directors with director identification numbers (DINs), must have a minimum authorized capital of Rs.1 Lakh, memorandum of association (MOA) and articles of association (AOA), digital signature certificates (DSCs) wherever applicable, etc. Once these conditions and requirements are fulfilled, a certificate of incorporation is sent by post to the registered office of the newly registered company.
The private limited company is also required to comply with income tax related compliances. These include obtaining permanent account number (PAN), tax deduction account number (TAN), and obtaining of tax identification number (TIN), professional tax if applicable, service tax, etc.
In case you wish to start a proprietary online business, then it is best to start with a company, as it is the only type of entity that can allow for angel funding or equity funding – a must for successful startup ventures. It is very easy to start and only requires you to open a (current) bank account. Filing personal income tax returns and getting intellectual property rights protection is necessary however.
.If you don’t advertise your website and products in India, and you don’t have any customers within the borders of India, you technically don’t need to pay GST.
You only need a GST number when you are selling to people within the actual country of India.
However, that being said, it’s likely the most e-Commerce platforms and associated services will all soon require GST numbers from Indian residents, regardless of your customer base.
It’s important to understand that paying your GST and filing your GST are different.
You don’t have to pay GST if you’re not selling your products to Indians.
However, it is still required to file GST is you’re an India resident doing business.