Legal requirements to start a ecommerce website in India


I would like to start a ecommerce website in India, could you please help me with the legal requirements and any guidance for this. My intent is to sell merchandise through internet. Do I need to register my establishment as a Shop? What other legal and government formalities involved here?

India Ecommerce Legal

asked Aug 27 '11 at 00:29
4 points
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2 Answers


You have multiple options

  1. You can set it as sole proprietary
  2. Private Limited Company
  3. Limited Liability Company ...

You should consult a CA for this in India on what is the best way to approach this.
you can get some direction from (Ministry of Corporate Affairs), (National Entrepreneurship Network ) and many startup forums like

answered Oct 25 '11 at 05:29
Vasundhar Boddapati
11 points


Raga, I have noticed that there haven't been many good answers to law / tax or business setup questions specific to India on here.

I know in the US to start an e-commerce website you don't even need to file any business paperwork. At a minimum all you NEED to do is file your additional income on your yearly taxes. But - that's in the US, and that's the minimum. It's usually recommended to form a true business entity if you are expecting to sell a significant amount or have the potential for any liability.

answered Sep 26 '11 at 08:07
Ryan Doom
5,472 points

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