The legal requirements for starting an online business in India are diverse. The rules alter depending upon the type of business model chosen. Because the regulations vary, the issues that need to be tackled to register the firm also differ. Let’s say you are starting a pharmaceutical firm that trades in drugs electronically. The legal compliances you will have to adhere to will be very stringent when compared with those of other types of e-commerce. For example, the digital communication channels used by healthcare and drug firms in the country are kept a close eye on and scrutinized aggressively.
Besides the usual company or LLP registration, to start an online business that generates revenue, the following have to be completed.
1. A GST registration is mandatory for “proprietary transaction-based online website.”
2. A bank account in the name of the company or LLP. This is essential because a bank account allows setting up a payment gateway for the eCommerce site.
3. So that your customers and patrons can pay through their method of choosing such as debit card, credit card, or net-banking setting up a payment gateway is essential.