Registrations you need to start an online business in India

The registrations an online business in India needs depend on what you sell, how you're set up and where your customers are. Almost everyone starts with a PAN and a bank account for the business, and many small businesses add Udyam (MSME) registration early because it's free and simple. GST registration depends on turnover, what you sell and whether you sell across states or through marketplaces. Food businesses need FSSAI registration or a licence. Shop and establishment registration depends on your state and premises. A trademark is optional but protects your brand name. Ask a chartered accountant (CA) to confirm the list for your business before you launch.

This is general information to help you prepare, not legal or tax advice. Rules differ between states and change over time.

Which registrations apply to which businesses?

Which business structure should you choose first?

Your registrations depend partly on your structure:

• Sole proprietorship: the simplest. You and the business are legally the same; registrations like GST and Udyam are in your name with a trade name.
• Partnership firm: two or more people, with a partnership deed.
• LLP or private limited company: more paperwork and compliance, but limited liability and an easier route to investment.

Many small online sellers start as sole proprietors and change structure later. Discuss the trade-offs with your CA.

What is Udyam registration and should you get it?

Udyam registration is the government's registration for micro, small and medium enterprises (MSMEs). It's done online on the official Udyam portal, is free, and uses your Aadhaar and PAN details. It can help with access to certain government schemes, priority-sector lending and protection against delayed payments from buyers. Beware of websites that charge for "Udyam registration" and look official; the government portal is free.

Do you need GST registration to sell online?

Not always, but often. The main factors are your turnover, whether you sell goods or services, whether you sell to other states, and whether you sell through marketplaces. Rules for marketplace sellers and inter-state sales have changed in recent years, so this is the registration to discuss most carefully with your CA. Our guides to GST on your own website vs marketplaces and GST basics for online sellers explain the background.

Once registered, you'll need proper GST invoices. UpMinutes creates a numbered GST invoice for each order, with HSN codes and CGST+SGST or IGST worked out from the shopper's state, once you add your GSTIN.

What do food businesses need?

Any business that makes, packs, stores or sells food, including home bakers, pickle makers and cloud kitchens, needs FSSAI registration or a licence. Smaller businesses usually start with basic registration; larger ones need a state or central licence, depending on turnover and activity. Apply on FSSAI's official portal, display your FSSAI number on your website and labels, and follow labelling rules. See taking home bakery orders online and selling homemade pickles and snacks.

What about shop and establishment registration?

Each state has its own Shops and Establishments Act. Depending on the state, it may apply to businesses with commercial premises, employees or both, and some states have exemptions for very small units or home-based work. Check your state labour department's website or ask your CA.

Should you register a trademark?

A trademark protects your brand name and logo from being used by others in your category. It isn't compulsory, but if you're investing in packaging, a domain and marketing, it's worth searching the trademark registry first and filing early. You can use "TM" with your brand once you've applied, and "®" only after registration. Read choosing a brand name and logo before you pick one.

Are there other rules online stores must follow?

• Consumer protection: India's consumer protection rules for e-commerce expect sellers to show clear information such as business details, prices, returns and refund policies, and a way to raise complaints. See store policies required in India.
• Packaged goods labelling: if you pack products yourself, legal metrology rules on what labels must declare may apply.
• Payments: payment gateways need KYC documents, usually PAN, bank details and proof of business. Start this early; see connecting Razorpay.
• Income tax: keep records of all income and expenses from day one.

In what order should you do all this?

You don't need everything on day one, and doing things in a sensible order saves effort:

1. Decide your structure with your CA, since most other registrations follow from it.
2. Open a bank account for the business and keep business money separate from personal money.
3. Register on Udyam, which takes little time and costs nothing.
4. Apply for product licences such as FSSAI before you sell those products, since approval can take time.
5. Sort out GST as your CA advises, ideally before you start selling across states or on marketplaces.
6. Search and file your trademark before you print packaging in large quantities.
7. Complete payment gateway KYC with your final business details.

While registrations are in progress, you can still build your store, add products and write policies. UpMinutes offers a 14-day free trial with no card needed, so you can be ready to launch the day your paperwork is complete. See the step-by-step checklist for starting an online store.

Which documents should you keep ready?

• PAN and Aadhaar of the owner or partners.
• Business PAN, deed or incorporation documents, if not a sole proprietor.
• Proof of business address: rent agreement, electricity bill or ownership papers, with consent from the owner if rented.
• Bank account details and a cancelled cheque.
• Photographs and a working phone number and email.
• Product details for licences: food categories, product types.

Registration checklist

• Business structure chosen with your CA.
• PAN and business bank account ready.
• Udyam registration done on the official portal.
• GST position confirmed with a CA.
• FSSAI or other product licences in place, if needed.
• State shop and establishment rules checked.
• Trademark search done before finalising your brand.
• Policies written and published on your store.

Filed under Getting started. More guides on the UpMinutes blog.