In The old days selling was done in physical shops and markets, one needs to have a access to these markets to Buy the stuff they desire. But Due to the Internet , The shopping can be done without going to the markets or shops. Nowadays, The Desired Products are just clicking away, One needs to just open a web browser , Type a website URL or search a website name on google, open that website, browse through the products that are offered for sale and Just click buy now and the product will be delivered to your doorstep, hence eliminating the need of going to the market and it also minimizes the time of searching market for desired products .
Now If you look at online store as a business then Let me tell you that starting an online store can prove to be the best decision that you have taken in your life. Let me tell you that starting an online store does not require you to have an offline store or an office or warehouse as you can use your home to store products or you can acquire products from the suppliers, you just need internet and pc or laptop to operate ,you can work in home as well as office, you dont need to hire people or you can hire few people to take care of the business, you can start your own website or you can register yourself as seller on ecommerce website like amazon.com , Flipkart.com , snapdeal.com ,myntra.com, jabong.com , shopclues.com etc.
Coming to the topic, In this article today we will focus on the type of Business entity that you can register as a business model for your online store.
Type of business entity in India
Private Limited Company
A private company restricts the right of the shareholders to transfer their shares.It has a minimum of 2 and maximum of 50 members, the Private company has a minimum paid up capital of Rs.1 lakh.
SA sole proprietorship is a type of business entity where a single individual handles the entire working and management of the business organization. He is a person who enjoys profit and bears loss in the organization.
Limited Liability Partnership
It is governed by Limited Liability Partnership Act of 2008.The maximum liability of each partner in an LLP is limited to the extent of his/her investment in the firm.
Partnership is the legal relation between 2 or more persons who have agreed to act as a partner and work, manage , share the profits of the business and bear losses that occur in the business . It working and registration is covered by the Indian Partnership Act 1932.
One Person Company
One Person Company is a combination of Sole-Proprietor and Company form of business, only one member is requireds and has been provided with relaxed requirements under the governing Act.
Now I will tell you the process of registering a online store Business entity wise:
The Registration of Sole Proprietorship
The Registration is not required in case of sole Proprietorship But You still need to get shop and establishment license from the state government . Also you can go for the startup Registration.You can also opt for SSI Registration that is provided by ministry of small , micro and medium scale industry.
The Registration of Partnership
The partnership firm in India are registered by the Registrar of Firms In india. You need to choose a name for partnership that should be unique , allowed and original, You need to make a partnership deed , Open a current bank account , Apply for the pan in firms name and then register your partnership deed by visiting registrar of firms website of the state where you will open partnership Business and make online application.
The Registration of Limited Liability Partnership
The Registration Process of LLP begins with Obtaining Digital Signature Certificate or DSC for the Partners, Obtaining Director Identification Number for the Partners, Obtaining Name Approval as per LLP Naming guidelines and ends with Filing for Incorporation on the MCA Official website and filling a E-Form.
The Registration of The Private Limited company.
Private Limited Company Registration start with the Application for Director Identification Number (DIN) in form DIR-3 & DSC,Search for the Company Name availability,Application for the Name availability, Drafting of Memorandum of Association (MOA) & Articles of Association (AOA),Filing of e-forms with RoC (Registrar of Companies),Payment of RoC Fees & Stamp Duty,Verification of documents / forms by RoC And Issue of Certificate of Incorporation by RoC or You can use newly Introduce RUN E- form on the MCA Website or You can take help of a consultant or an expert .
The Registration Of One Person company
OPC Registration Or One Person Company Registration is same as Registration process of private limited company or it is a type of Private Limited Company, so You need follow steps for registering Private Company.
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In the end I would like to conclude that there are few more formalities that needs to be done to open an online store like You need to secure logistics services for delivery of products to customers, You need to secure payment gateway to receive payments, you need to geta website and domain name with Trademark Registration and also require GST Registration. In this article we have just outlined registration process.