Spend Less Starting Up, Register an Online Business
The onset of the world wide web (www) has opened a wide range of opportunities in every aspect of day-to-day activities. This includes education, governance, health, media, and of course, business.
Aptly referred to as Online Business or e-business, it caters to all forms of business or commercial transactions including information exchanges across the internet.
Commerce embarks on the exchange of products and services among businesses, groups and individuals who have seen the importance and convenience of transacting online.
The practice of online business is deemed as essential for most businesses, regardless of location.
Delineating E-business From E-commerce
Many are living on the wrong impression that e-business and e-commerce are the same. However, a closer look at these two would show that they are actually two different brands. E-commerce has a wider range. Aside from dealing with online transactions on selling and buying of a product and/or service, it also conducts business processes (inbound/outbound logistics, manufacturing & operations, marketing and sales, customer service) within the value chain through internal or external networks.
However, an online business or e-business for brevity embarks on the use of the internet. This is because the internet has its platform for business activity, mostly selling goods and services.
Coined from IBM’s marketing and internet team back in 1996, “e-business” allows multi-scopes which would see business activities involving a large number of market participants — business and consumer, private individuals, public administrations or any other organization.
These market players are divided into three. To illustrate, these include Business, Consumer and Administration, each with the flexibility to become buyer or service provider within the market.
Putting Up Online Business in India
Even with a simplified business registration process in place, establishing a new business in India remains tedious as compared to other business hubs.
However, that isn’t the case for e-business. Unlike in the formation and registration of a conventional company, to register an online business is far more convenient.
But even before the actual business formation, it is important to be prepared with the fundamentals. For instance, a business plan to outline your business objectives, funding and setup. It is only then that a business direction is drawn, which makes starting-up not as difficult as it sounds.
Ideal Online Business Models for Start-ups
Just like in any other business, there are a variety of business models from where entrepreneurs can choose from. The Marketplace and e-Commerce.
- Marketplace Model – It is an online business model deemed as ideal for starting entrepreneurs in India. Marketplace Model embarks on an interactive website as a marketplace. This website requires sellers, buyers, products and services to register on the web portal. The online market gets to earn by charging a fixed fee from transactions in the digital platform. It could earn through product-based commission or for every completed transaction. This portal has the ability to monitor the transactions with a system on logistics services, payment gateway and marketing services, in place. Among India’s existing online businesses using the marketplace, models are Amazon, Flipkart, Snapdeal, Shopclues, eBay and Infibeam.
- E-Commerce Business Model — Aside from the MarketPlace model, another ideal online business model is the e-Commerce model. This online business model embarks on the exclusivity of the digital platform. The website only gets to display, promote and sell products and services offered by the business entity which owns, operates and administers the web portal.
Register an Online Business in India
All forms of business — traditional or online, should be registered with the proper government agency. Also a permit to operate from the local government hosting the business operation.
As the name suggests, e-businesses enjoy the leverage of getting things done without going from one place to another just to register an online business.
All it takes is two days to register an online business in India.
To register your online business in India, it is imperative to be familiar with the Companies Act, 1956. This requires all types of business to register.
Easy Way to Register as Sole Proprietor
For newbies, the easiest road leading to business is to register an online business under the category of a sole proprietorship. It requires less legal compliance, aside from the fact that it is more convenient to handle – no need for corporate guidelines, no costly board meetings, minimal cost-covering employees’ salaries, and most of all, the single proprietor is in total control insofar as decision making is concerned.
Registered online business under this category can actually operate and do business even at the comfort of the proprietor’s home. A home-based online business no longer requires special registration until after the business starts to grow, profit-wise, thus requiring an expansion.
To register an online business in India is simply the fastest and most convenient way to start a revenue-earning scheme for entrepreneurs wanting full control over a business embarking on limited starting capital.
Steps to Registers an Online Business
Entrepreneurs wanting to register an online business are also bound by government requirements. Interestingly, the pre-registration process is far more lenient as applicants are only made to comply with simple requirements.
To register an online business under sole proprietorship, entrepreneurs should go to the local MCA office. Furthermore, they should submit an accomplished Shops and Establishment form.
Part of the process to register an online business is to open a current bank account with a business name. In opening a current account, an entrepreneur is asked for documents seen to prove that the online business is located in the same address that has been declared in the bank form. Proof of billing from utility companies is acceptable, or a contract of lease of the place of business is just being rented.
From there, accomplish the following:
- Form 1 – An application form for availability or change of a company name. This form is available and could be downloaded from the MCA website.
- Form 18 – It is an executed declaration of authentic office address for the new E-Commerce establishment. This form is also available and may be downloaded from www.mca.com
- Form 32 – This particular form is for a new e-commerce company. This is where the company declares appointments of Directors, Managers and Secretary. A form for this is also available or downloaded from.
- Wait for the confirmation email stating “Your store has been successfully incorporated,” which automatically updates your status to “Approved.”
Short Checklist, Tall Order
Make no mistake about this, though. To register an online business seemed easy, but the government stringent measures may prove otherwise. India’s MCA explains the logic behind the stringent measures – It is a safety mechanism to make sure that only legitimate entrepreneurs get to do business in a country of over 1.35 billion potential clients.
There is one logical way to skip the complexities. Get help from legitimate business advisors. With a proven track record of excellence and integrity, 3E Accounting has what it takes to deliver results, promptly, for less. We are a top-notch India incorporation service provider.
For information, feel free to contact us.
3E Accounting India
3E Accounting India is a corporate service provider and accounting firm assisting clients with company formation and incorporation. We offer company secretary and business-related services in India.
