top of page
Search
Writer's pictureLead India
Nov 14, 20233 min read

Startup Legal Services For E-Commerce Business

In the last 10 years, the country has seen a huge boom of e-commerce companies. With the emergence of e-commerce businesses such as Flipkart, the e-commerce business in India has grown at a high rate and at present is one of the largest contributors to the economy. Every day such entrepreneurs could be found, who wish to start an ecommerce business or legal tech startups, if you wish to start your own business in the same industry, following discussion could be helpful-

An ecommerce business in India could be started by two ways:

  • You can create your own ecommerce website.

  • You can join another existing e-commerce business.

In case you do not wish to start an e-commerce business like Flipkart, Amazon, Snapdeal, etc., however wish to register as a seller on the ecommerce websites, the following legal actions shall be taken:

  • A Legal Structure shall be chosen- Sole proprietorship, Company, Partnership, etc.

  • You would have to register under the Tax compliance.

  • PAN card would be required in case of sole proprietorship

  • A current account in a bank would be necessary.

  • You would have to get yourself registered on an e-commerce website as a seller by uploading relevant certificates and documents.

In case your business creates its own e-commerce website to sell its products and services, then a number of startup agreements would need to be prepared and thus, it is advised to seek assistance from an experienced startup legal services. The steps mentioned below would be required to set up an e-commerce business:

Choose Legal Structure of the Business: When starting an ecommerce business in India, the first step shall be to select the right legal structure for business. The legal structure of the company would depend upon different factors such as the persons required, capital, and risk factor involved. Mentioned below are 5 legal structures which are suitable to start an ecommerce business in India, these are:

  • Sole Proprietorship

  • Private Limited Company

  • Partnership

  • Limited Liability Company or Partnership (LLC or LLP)

  • One Person Company

Register the Business: The final stage in launching an online store is to register the company's finalized legal structure. An entity can register its legal structure through the Ministry of Corporate Affairs or Registrar of Firms using the existing processes. It can then register as a "Start-up" on the Start-up India website and mobile application to receive the advantages.

Get the Domain Name registered: The Domain name is the basic identification/name of the website which the user uses to access it. A distinctive domain name that does not already exist for the business website must be selected in order to launch an e-commerce venture. The domain name is registered as a trademark to protect it under the Intellectual Property Laws.

Privacy Policy for e-commerce website: A privacy policy is the type of statement or legal document which discloses the ways an individual gathers, uses, discloses, or manages the customer or data of his client. Privacy policy is a basic requirement when starting an e-commerce business as it would ensure protection to the client's personal information.

Terms and Conditions Policy of Website: The Terms and Conditions Policy covers all the user and company agreements which restrict the liability of the e-commerce website.

Vendor’s Agreement: An e-commerce business would also need to prepare a vendor’s agreement, this agreement would explain the relationship between vendors, their rights and duties as well as the company’s right to act against the vendors in default.

Payment Gateway: As an e-commerce website would be accepting money through online mediums, the business would have to get a secure payment gateway such as UPI.

Secure the website’s data: One would have to ensure that the data of the ecommerce website, including the personal information of the client is secure. Data security agencies could be hired as well to protect such data and transactions which take place online.

Conclusion

As can be inferred from the above discussion, it is imperative to consult a startup lawyer in case one wishes to start an ecommerce business in India.


Lead India offers you a team of experienced advocates who could successfully assist you with the legal procedures as well as drafting required agreements. Thus, if you wish to talk to a lawyer or ask a legal question, you may contact us.


Call Us: +91–8800788535

Email: care@leadindia.law


1 view0 comments

Comments

bottom of page