Ecommerce Company in India

How to Set Up and Register an Ecommerce Company in India?

Online Legal India LogoBy Online Legal India Published On 29 Nov 2022 Category Company Registration

Do you have a dream of starting your own ecommerce business but are not able to understand how to fulfil your dream? You can fulfil your dream with the help of this guide which includes easy steps to start an ecommerce company in India.  

However, it takes a lot of work and effort to start a new business in India, but if you keep patience, learn from your mistakes, and believe in what you are doing, the rewards will soon start to come in. 

What is an Ecommerce Company in India?

An ecommerce business is an online marketing platform where buyers and sellers exchange goods and services as well as transfer money over the internet. These business dealings can be either B2B (Business-to-Business), B2C (Business-to-Consumer), C2C (Consumer-to-Consumer), or C2B (Consumer-to-Business). 

Due to the continuous increase in the usage of the internet and smartphone, ecommerce company in India are increasing in large numbers. For the millions of young entrepreneurs in India, starting an ecommerce business is a great option because it requires very little capital.  

Steps to Start an Ecommerce Company in India

There are many things you must follow to successfully establish your ecommerce company in India. Follow the steps given below: 

Step 1. Decide Your Business Model

The type of business model will depend on the market segment and business speciality you need to target; they are essentially divided into.  

  • Traditional B2B (Business to Business)
  • B2B e-commerce
  • B2C (Business to Customers)
  • B2B2C (Business to business to consumer)

The two ways to start an ecommerce business are by creating a new e-commerce website or signing up as a seller on an ecommerce platform. The best option for the majority of entrepreneurs launching an ecommerce business is to sign up as a seller on an existing ecommerce. 


Step 2. Business Registration

Once you have decided on the business model, the first step is company registration to turn your dreams as an entrepreneur into reality. Since banks in India are generally reluctant to provide loans for ecommerce firms, the majority of ecommerce businesses require significant amounts of equity capital to start and operate.   

As a private limited company offers limited liability protection, transferability, the ability to have equity partners or private equity investors, and the opportunity to be a separate legal entity, it is, therefore, better to launch an ecommerce business as a private limited company. 

Step 3. Open a Bank Account

The next step to set up an ecommerce business is opening a bank account after the business organisation has been registered. It is quite simple to open a bank account in the name of a business if a Private Lmited Company has already been incorporated. To open a bank account, the business owner can go to any bank with copies of their PAN card, memorandum, articles, and certificate of incorporation of their company.   


Step 4. Tax Registration 

You must obtain the necessary tax registration after getting a PAN Card for business and opening a bank account. If the company plans to sell goods in India, it must obtain VAT/TIN registration from the state Sales Tax Department. If the business intends to offer service online, then it must obtain tax registration.  

You cannot enlist with any e-commerce company, including Flipkart, Amazon, or Paytm, without having a GST Registration Number. This rule applies to both Service Providers and manufacturers.

With the following documents, you can approach an online marketplace.

1) Copy of a PAN card,
2) The company's certificate of incorporation and
3) Cancelled check
4) GST Registration Number


Step 5. Payment gateway for ecommerce business

The processing of credit card, debit card, net banking, and cash card transactions through an e-commerce website is enabled through an online payment gateway. The following paperwork must be sent to the payment gateway option in order to obtain a payment gateway for an ecommerce website:

  • Bank account in the name of the business
  • PAN Card of the Business
  • Certificate of Incorporation
  • Memorandum of Association
  • Articles of Association
  • Identity Proof
  • Address Proof
  • Website Terms of Use
  • Website Privacy Policy

The ecommerce company in India will be given a payment gateway to facilitate online payments once the aforementioned documents are submitted. Some of the Indian payment gateway companies include the following:

  • Instamojo
  • Razerpay
  • CC Avenue
  • PayU
  • EBS


The ecommerce business is expanding quickly in India. Many aspiring entrepreneurs dream of launching their own ecommerce company in India. So, if you have the same dream, follow the above-mentioned steps carefully and complete your ecommerce business registration with the Online Legal India service.  

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Anjali Malhotra


Anjali Malhotra


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