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?
You have multiple options
You should consult a CA for this in India on what is the best way to approach this.
you can get some direction from http://www.mca.gov.in (Ministry of Corporate Affairs), http://www.nenonline.org (National Entrepreneurship Network ) and many startup forums like yourstory.in
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.