To register an online business in India as a sole proprietorship, you must first register your business with your local municipal corporation office. This involves submitting forms such as the registration and undertaking forms along with the fee schedule. There is no additional cost to establish a sole proprietorship other than opening a business bank account. You must also apply for company registration which involves submitting forms like the application for company name availability and declarations of directors and office address. Finally, you need to obtain necessary licenses and register for taxes at the commercial tax and profession tax offices. The entire process requires filing various forms with regulatory authorities along with supporting documents.

1. How To Register Your Online Business In India
Establishing a new business in India is an arduous and time-consuming process, but if you
learn from your mistakes, enjoy your laurels, and keep patience, soon the fruits of your labor
will start to pour in. You need a business plan to outline your business objectives, funding
and its setup. Once you know in which direction you are headed, it becomes simpler to start.
Entrepreneurs seeking to launch their company must first receive a permit to operate it. This
article shares information on the procedure of registering online businesses in India.
Company registration for online businesses in India can be done in two ways, either as a
Private company or as a Public company. To register your online business in India, you need
to have a good knowledge of the Companies Act, 1956. Every business that wants to register
as a company must apply under this Act.
Registering an E-Commerce Business in
India: Sole Proprietorship
For starters, sole proprietorship is the easiest way to start a company, because it demands
lesser legal compliance and is easier to handle. You, as a proprietor, are a single entity in all
legal matters. Thus, your brand/company and you exist as one soul, with no bias whatsoever.
You can run a proprietary business out of your home, for which no special registration is
required. However, when your business turns profitable and you seek expansion, it is wise to
set up a physical office/commercial store. And for that, you need to complete paperwork as
per the Shops and Establishment Act of 1965, and register the documents with your local
municipal corporation for further processing.
For an ecommerce business that intends to accept online payments, must be a registered
company. Only registered companies can integrate an authorized payment gateway into their
website.
Registration of Sole Proprietorship for E-
Commerce Business
You can register your E-Commerce business under sole proprietorship at your nearest local
municipal corporation office. To complete the registration process with the authorities, you
need to submit the duly filled Shops and Establishment Form.
Essential documents for submission to the municipal corporation include:
• Registration Form
• Undertaking
• Fee Schedule

2. Cost to Establish a Sole Proprietorship
Business
There is absolutely NO additional cost required. All you really need is a current account in
the name of your business, at a bank of your choice. However, for opening an account you
would need to submit an address proof of the establishment like electricity or telephone bill,
or a rental agreement, if you will be renting the commercial space.
Apply for Company’s Registration
This is the final step in establishing a sole proprietorship business. This includes
incorporating company name, registering the office address, notice for appointment of
company directors, manager and secretary, and declaring the employees’ salary structure. The
following forms are needed to proceed with the process.
Form 1: Application form for availability or change of a company name is declared in Form
1. Once you apply for a new company name, the MCA (municipal authority) will suggest
four different forms, you have to choose the most suitable one from the options. Proprietors
can download this form from the website www.mca.com.
Form 18: You must declare authentic office address for your new E-Commerce
establishment in Form 18, which you can collect from your local municipality office or
download from the website www.mca.com
Form 32: For a new E-Commerce company, Form 32 declares the appointments of new
Directors, Managers, and Secretary. For convenience download the form from
www.mca.com or walk into your local municipal office.
After submitting these forms, once the application has been approved by the municipal
authority, you will receive a confirmation email on your store being successfully
incorporated, and the status of the form will change to “Approved.”
Essential Documentation for Registration
Process
Promoters who intend to be the Directors in a company must apply for Director’s
Identification Number (DIN), and thus they must have Permanent Account Number (PAN)
and Digital Signature Certificate. The DIN application (DIN 1 form) is available on the
website – www.mca.gov.in. Shareholders can apply for DIN online as it is a convenient way
to upload and attach essential documents.
Upon obtaining the DIN, Directors must apply for the availability of the proposed name of
the company to the ROC. Shareholders must fill the MCA-21 form (available on the
www.mca.gov.in portal) for the same. Upon receiving confirmation on the name, the
proposed company must be incorporated within 6 months; else, the name must be renewed by
paying a fee.
Here is the procedure for ease of understanding.

3. Step 1: Fill An Application To Obtain Directors Identification Number (DIN); It Hardly
Takes One Day To Receive It From The Government Authority.
Step 2: Apply For The Digital Signature Of Directors Of The Proposed Private Limited
Company (Pvt. Ltd.) In India.
Step 3: File An Application To The Respective Registrar Of Company (ROC) To Obtain
Approval On Company’s Name.
Step 4: Once the confirmation on name obtained, now fill an application for company’s
registration to same ROC of the state, where the company has its headquarters.
Simultaneously, the company’s members must be ready with the legal documents like
Memorandum of Association and Article of Association, identity proof and residential proof
of the Stakeholders.
Step 5: Apply For VAT At The Commercial Tax Office, Followed By Professional Tax At
The Profession Tax Office, Both These Identification Codes You Shall Receive Within A
Few Days.
Step 6: Apply for Provident Fund (PF) with the respective Provident Fund Organization. You
need to submit the essential documents of the employees in the process.
Step 7: Register with the Employees’ State Insurance Corporation for medical insurance of
the employees. In case if your employees meet with an accident on job, this plan would take
care of the medical expenses on behalf of the company. Submit the essential documents of
the employees to the regional office.
Step 8: Once All Approvals Are Through, Apply For The Certification Of Company’s
Incorporation.
If you find the process complicated and cumbersome, you can hire the services of a reputed
law firm that exclusively deals with Company Registration process. Some of these top service
providers are based in Chennai, Bangalore, Mumbai, Hyderabad, NOIDA, Gurgaon, Pune,
and Delhi.