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Legal Agreements and Requirements to Start e-commerce Business in India

Legal Agreements and Requirements to Start e-commerce Business in India

Online business or e-commerce startups are contemporary form of doing customized business in India. All the local and global, big or small, innovative or traditional businesses has hit the online market to serve the mass public with exciting, swift, user friendly and convenient websites and/or mobile applications. Whether the business platform is physical or virtual it should be backed by basic commercial registrations, legal compliances, business registrations and website/mobile application policy.

Public also prefer safe and secure e-commerce platforms to access and buy products/services or to share their personal and other information. The most important thing a e-commerce business must have is an authentic and secure payment gateway.

In any online business the website or mobile application must have its website policy which explains the entire business model and the way it operates along with user rights and responsibilities. It needs well drafting skills which covers the business and all commercial transactions related to business in a simple yet complete technical and legal boundary.

Following are the basic requirements or documentation an online business should have-

  1. Business Registration- The first and foremost requirement is to register your business with tax and various other government bodies to validate your business. Even online business must register itself before initiating any commercial activity. Business registration certifies your commercial activity and you have a valid proof/certificate to carry your business operations. The basic business registration that is MSME and/or GST registration works as a documentary proof for other ancillary registration like ISO Certification, Trademark Registration, Import Export License, Food License etc.
  • Vendor Agreement The next significant requirement for an online business is to have a well drafted vendor agreement to set out the terms and conditions of the online business with various vendors. All vendors listed on the website/mobile application must sign this vendor agreement which contains the terms related to listing, fee/payment policy, refund or replacement policy, intellectual property rights, commission chargeable, dispute resolution and various other clauses. Vendor agreement defines and confines the role and responsibility of either party which will not only help in smooth running of business bur also protects any future unwarranted litigation between the parties.
  • Website/Mobile Application Policy According to the Information Technology Rules, 2011 in India there is a corporate body to provide a privacy policy for handling of or dealing in personal information, making the privacy policy a must-have for websites. The most important legal requirement for any e-commerce startup is to have a website/mobile application policy. This document is as technical as the designing and programming of the website/mobile application. It clearly specifies the User rights, responsibilities and liabilities while using the portal and thereafter also. The terms and conditions and the privacy policy document draws the legal periphery of business operation and all the commercial transactions. It draws and set out the limit of website and the user who uses the platform.

Website policy not only creates transparency but also safeguards the business from any future litigation.

  • Intellectual Property Rights While doing business online, many small or big brands get associated with you to sell their products or services and post their brands, logos, designs on the portal. Hence you are required to take due care and make sure that there is no violation and infringement of anybody’s intellectual property rights at the same time you need to protect yours also. The products displayed on your portal which are available for sale must also certified and authentic brand products only, otherwise there are chances of trademark infringement or violation.  

Thus with basic business registration and few other legal documentation you can start your online business and can access and take benefit of the huge potential market.

If you want to start your new online venture, professionals of aapkaconsutant.com will help you to register your business and legal documentation also.


Company Registration I Trademark I Copyright I Patent I GST I MSME

 ISO Certification I Website/App Policy I Legal DocumentationAnnual Compliance 

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