Legal Requirements to Start an Online Store in India
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As per the Information Technology Act of 2000, whose rules keep frequently changing with the latest technological trends, to start an online store in India, you need to create a company or partner with a company through the following means, Sole Proprietorship, Partnership, Limited Liability Partnership (LLP), Private or Public Company, Single Person Company.
Registering the Domain Name A domain name must be registered for the company that is not already present on the web. You can register the name with the Trademark Registry and acquire rights for the registered domain name.
Protecting the Data The company must abide by data privacy and data security rules and ensure that customers’ private details & any other sensitive personal data should be protected by the company at all times. The company must ask for the customer’s permission before using their data.
Payment Gateways The payment portal must accept debit cards, credit cards, net banking, internet banking payments, UPIs, etc. The payment gateway acts as a mediator to transfer the money from the customer to the business account.
Supplier Agreement All the online stores must provide a supplier/vendor agreement with the other party their business is involved with. The agreement must state each party’s status & obligations. It should also mention what would happen in case of default, product quality, payment, late delivery, etc.
GST Requirements GST registration is mandatory to start an online store in India. There are various threshold limits set by Indian law as per which the company must pay the calculated GST to the government
Other Requirements Other than these, various other contract laws, labor rules, and other Indian Penal Code laws must be fulfilled to run your online store legally. Many states have also made it compulsory to acquire a shop and establishment license to start a company.
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