What are the legal steps to start an e-commerce business in India?

What are the legal steps to start an e-commerce business in India?

  1. Business Registration: You can set up such business as a PVT. LTD. Or LLP or OPC company.
  2. Abiding IT Act: Protection of the identity of a person or the Data Protection related compliance.
  3. Privacy Policy: It is Important for every e-commerce platform is to maintain the privacy of its users. Although a privacy policy is technically a legal document, great effort should be made to craft a document that is both accurate and easy to understand, obscuring hidden clauses in reams of text is not acceptable.
  4. Payment Gateway Compliance: Which is mandatory for every ecommerce startup.
  5. Abiding the Consumer Protection Act 1986 (“CPA”): Protects the relationship between consumers and service/goods providers.
  6. IP in E-Commerce: A company that commences e-commerce activities at first must get its domain name registered. Trademarking the name would be the wise option. Abiding International jurisdiction: Every country has its own set of compliance that businesses outside the country should follow.
  7. Vendor Agreement: Signing a vendor agreement in which the terms and conditions between a buyer and a seller are agreed up front, makes sure that both the parties are clear about each other and what is expected of them reducing the risk of legal disputes down the road.
  8. Terms of Service: Website Terms and Conditions are essential in, among other things, establishing the ownership rights of the website operator in and to the applicable content and offerings featured on the website, limiting the liability of the website operator.
  9. Service Level Agreement: An SLA is an agreement between you and some service provider, such as your web hosting provider, telephone provider, and so on. It outlines each party’s responsibilities in the event of a problem and defines how the service provider classifies and resolves problems.
  10. Transfer Pricing Framework: Commercial transactions between related entities of multinational corporations increasingly dominate the sphere of world trade.
  11. VAT Registration: VAT registration is required when you are in business of any goods or products that can be felt or touched and exceeds specified amount of annual turnover. Specified amount of turnover depends on the state regulations which are INR 5 to 10 lakhs.
  12. Indirect Taxes: Various indirect taxes are levied at the central and state level. Like: Service Tax, Sales Customs Duty and Central Excise Duty.
  13. Return Policy: Having a well thought out return policyclearly displayed in your store is key to attracting and keeping your customers. As online shopping becomes more commonplace, return policies become even more important.

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