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Things You Should Explore About E-Commerce Company Registration
The ease of accessibility to products and services online on web on mobile devices has been the major reason for the demand of ecommerce companies. In fact, the smartphone penetration and growing internet have together made ecommerce business prominent at present. In order to make the online business get executed with appropriate conduct, capital requirement and business registration have to be prioritized. But, prior to the registration, ecommerce business models should be understood. Firstly, the entrepreneur can choose to become a seller on the ecommerce portals or get new website developed. In the second, most entrepreneurs launch their business online backed by technology, marketing and other services to deliver their services without any hindrance.
In the context of registration, the business entity has to abide by the rules of ecommerce company registration, wherein, it is necessary for business to get registered as private limited company. This registration offers limited liability protection, ability to have equity investors or equity partners, transferability and a uniquely distinct legal entity. It is also mandatory to apply for the opening of bank after the registration of business. When all the obligations of registration of the business are duly followed, then, bank account in the name of the business will be easier.
When it comes to registering for the bank account, copies of Articles of Association, PAN Card, memorandum of Association and the Certificate stating the incorporation of company should be produced at the bank. Apart from this ecommerce company registration also involves tax registration, wherein, the VAT/TIN registration shall be applicable depending on the plans of business to sell products or distribute services. After evaluation, the Sales Tax department will proceed with the tax registration for the business. As a part of this step, cancelled cheque, PAN Card copy and certificate of the incorporation of company need to be submitted. After this process, the payment gateway has to be initiated for the proper functioning of the ecommerce business.
In addition, the business owner should understand the implication of B2B, B2C, C2C and C2B business models of ecommerce in order to proceed with the registration of the company accordingly. When the entrepreneur decides to register his ecommerce business as a legal entity, then, perpetual existence of the company, fund raising and separate legal existence are some of the advantages that can be availed with this registration process.
Here are the additional points to be followed for the registration of ecommerce business:
- Name of the company should be selected
It is pivotal to highlight the business model and develop logo of the company while choosing a name that showcases the essence of the brand. Generally, it is advisable to use unique, catchy and industry specific business name, so that, it can be easily related with by the customers. After the selection of the business name, the e-application will be prepared addressing the Ministry of Corporate Affairs. It should be ensured that the name of business should not be used by any other business and the application must be submitted 20 days before the business registration.
- Document submission prerequisites
PAN Card, ID proof, business address proof and Latest passport size photograph of members and directors or any other stakeholder of the business should be submitted along with the documents to complete ecommerce company registration.
- Essential points to be followed
Drafting of documents, submission of documents and getting ecommerce company registered are the essential steps which should be followed with the help of experts. Therefore, it is ideal to select the MLM consultancy that offers a detailed overview about company registration for ecommerce industry. No matter what the glitch is made, it gets identified by the experienced MLM consultants and they deliver exceptional service to complete registration of ecommerce business with precision.