Starting an online business in India can be an exciting and challenging process. With the rapid growth of e-commerce in India, more and more businesses are moving online to reach a wider customer base and improve their bottom line. However, registering an online business in India can be a complex process, and it's essential to understand the legal requirements and procedures involved.
In this blog post, we will provide a step-by-step guide for D2C brands to register their online business in India. Whether you're a new entrepreneur or an established business looking to expand your online presence, this guide will help you navigate the registration process and set your business up for success.
Whether you're switching from a physical store or just starting your enterprise online, registration is a necessity no matter what you decide to do with your company. The primary concern is, why is this necessary? After all, you're not investing in rental properties or even managing a retail space.
Instead, you're making online purchases, keeping your website up to date, resolving issues as they arise, and interacting with your consumers. All of those need legal registration.
1. Contacting the Ministry of Corporate Affairs
Reaching them may seem tough, but it's really very simple and straightforward. Simply visit their website at www.mca.gov.in. The website itself is well-organised, with each step clearly labelled.
2. Keep a copy of your important papers close to hand
Documentation is required to begin the registration procedure for any business. The list of documents include:
Scanning and keeping them at medium resolutions will make it easier to upload to the website.
3. DSC and DIR3
After filling these two forms, you may apply for a DIN (Direct Identification Number) online. Remember to fill out the DSC, Digital Signature Certificate, with all the following papers.
4. Complete the 1A form by entering your information and choosing a name
By filling the online format of the 1A form, you will be able to give your business a formal name. It is preferable to provide the RoC, the Registrar of Companies, with at least four names from which to select. The cost for filling up this form is Rs. 500, which you must pay at the time of submission. Afterwards, wait for the response from the RoC, which typically takes a few days. The names are chosen based on their availability and their appropriateness.
5. Register your business with the appropriate authorities
The excitement of obtaining approval for your business name is incredible. However, do not delay in publicising it. Once the name has been approved by the RoC, you have a maximum of six months to file an official application for business registration. If you delay too long, you will be forced to repeat the procedure. Bear in mind that online registration of your company name is critical for obtaining a brand trademark
Once you've registered your name and applied for a trademark, all that's left is to wait for approval. Following that, only you will be able to use that domain name for your website. Due to copyright concerns, no rival will be allowed to utilise it. Additionally, it will play a significant role in branding and marketing development.
6. Filling out the Memorandum of Association and Articles of Association
To begin, submit the Memorandum of Association, which should include all of the company's corporate goals. Secondly, submit the Articles of Association, which should include the whole leadership team and the daily business operations. You may submit them with the assistance of a lawyer. Ascertain that both papers are signed by at least two business representatives. Additionally, remember to bring a witness.
7. Final signing and validation
Submit the aforementioned papers to the Registrar of Companies for final clearance once again. After they are completed, print out the papers and have them authenticated. They should be filed alongside the remainder of the papers to finalise the registration process.
8. Obtaining your Certificate of Incorporation
Your business registration charges must be paid in full before you can complete the registration process. The Registrar of Companies will provide you a Certificate of Incorporation after you've completed the process. Then you can get your company off the ground!
Once your company is a legal entity, you can formally register with the tax authorities, get your GST number, and open a bank account with a financial institution. Contact a trustworthy payment gateway after you're done with this so that you may generate GST-compliant invoices for your clients and allow them to pay conveniently from your website.
Online registration might seem complicated, but it is a basic legal requirement to get your company up and operating. Simply come up with a distinctive online business concept, a service to offer, and then establish your supply chain and get going!
Once you have registered your online business, managing orders on marketplaces can be a daunting task. To ease your worries and make your online business run smoothly, check out our OMS platform that offers a comprehensive solution to manage orders on marketplaces. With our platform, you can easily track, manage and fulfill your orders, automate your inventory and streamline your business operations.