News By/Courtesy: Varsha Subramaniam | 26 Oct 2020 9:52am IST


  • Starting a business is a big deal.
  • Just like a physical business platform, these online businesses also require certain legal requirements to be fulfilled and looked into before starting one.
  • One must know the laws before entering into a particular market and opening their websites.

The online market is growing day by day. Many entrepreneurs have started their business online and this market has shown a rapid growth rate in the last few months. Starting a business is a big deal and with the growing technology and starting your own online business will be a hectic job. Make sure you do it right without any errors. Just like a physical business platform, these online businesses also require certain legal requirements to be fulfilled and looked into before starting one.


  1. Forming a Company:

Forming a private company will really help one’s online business. If one has a company, they can easily get business and customers. For starting a company, it must have an appropriate name, registered office address, directors, minimum capital. This makes the company registered and can function as an online business.

  1. Taxes:

What every person should keep in mind before starting his own online business is taxes. Every country and state has different rules for taxes. It is always suggested to have a professional expert in this field by your side, to research the market you’re entering into and the tax information related there.

  1. Documenting:

If your entering into an online business, make sure you do the legal documentation and contacts of your business. Legal documenting will help you protect your business and documenting your contacts will help you promote your business. The legal documentation is nothing but your terms and conditions and privacy policy. This is basically a seller’s agreement which the buyer in the online market will go through, well informed about what they get into and then sign. This is why online businesses require proper documentation to avoid all these problems.

  1. Follow laws:

For every entrepreneur and online businessman, it is important to follow all the related laws to his/her business and maintain them. One must know the laws before entering into a particular market and opening their websites. For example, one is supposed to know the e-commerce laws and maintain their business according to that. By doing this they can avoid cyber crimes and further problems.

  1. Copyrights, trademark, and patents:

Registration is not required for copyright. One can simply create their works which give them ownership. But registering will secure your original work and provide effective protection. In business, one has to stand out and be unique in the eyes of the customers. The person before starting an online business should decide on a trademark for their business, with words, symbols, logos. Many successful franchised businesses, like McDonald’s and Subway, started with their good trademark. There are three types of patents, in which the most used are the two patents, utility and design patents. Utility patents cover inventions and design patents cover artistic works.

  1. Business Insurance:

One will require business insurance to protect their business. Look into several options and find the best one which suits your business.

  1. Payment Getaway:

It is important to have a payment getaway for the customers and offer to have a credit card, debit card, net banking, and internet banking payments in multiple banks.

  1. Vat registration and bank account:

Vat registration is required to start an online business, as in the case of selling any goods; one has to maintain the rules of the state’s sales and tax department. Opening a bank account in the name of the company is really important in an e-commerce marketplace for payment getaways and for a private company it will be easier to open a bank account.

  1. Age restriction:

One has to follow the Children’s Online Privacy Protection Act (COPPA) on their website, like not to collect information for a person aged under 13 and to maintain an age restriction policy to some restricted products.

  1. Shipping restrictions:

All businesses which require shipping their goods maintain certain restrictions. Mostly only a few products are restricted as the same in all companies. One has to look into the trade commission’s guide before shipping internationally. The same products can sometimes be shipped domestically.

  1. Inventory:

One should check their lease, deed, or zoning codes if they hold a substantial inventory. One must know all the zoning laws before starting a business as some businesses have prohibitions or restrictions.



This Article Does Not Intend To Hurt The Sentiments Of Any Individual Community, Sect, Or Religion Etcetera. This Article Is Based Purely On The Authors Personal Views And Opinions In The Exercise Of The Fundamental Right Guaranteed Under Article 19(1)(A) And Other Related Laws Being Force In India, For The Time Being.

Section Editor: Pushpit Singh | 26 Oct 2020 19:13pm IST

Tags : Online business

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