The easiest way to start off a business is as a sole proprietor. Many online marketplace sellers run sole proprietorship businesses. That is because it is the simplest to pull off by an individual. Also, ecommerce does not require substantial resources in the initial stage.
If your goal is to sell on online marketplaces or set up your own web store, your proprietorship will engage in retail business. When doing business you need to maintain a current account in your business’ name. But in order to do this you will need to prove that your business is a legal entity. For this you will need tax registration documents or a shop and establishment license.
For your web store to collect online payment, you must register your business. This way you will be allowed to integrate your website with a recognized gateway. Registering your online proprietorship helps you avoid confusions and hassles with the law and also a registered business is likely to gain more trust.
Legalizing a sole proprietorship as an online seller is pretty the much the same as for an offline seller. Here’s a list of the essentials:
Step – 1
Sole proprietorship registration can be done online with help from various entities. You can also do it yourself by approaching your nearest municipal corporation office.
Step – 2
You must prepare the required documents ass listed above and fill up a registration form, submit an undertaking and pay the required fees.
Step – 3
Apply for VAT/CST registration certification.
Step – 4
Open a current account with any bank of your choice by providing proof of your company’s registration.
The kind of licences you need as a sole proprietor will depend on the kind of business you’re running and how you run it.
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