With the surge in digital adoption and online shopping trends, India’s retail and e-commerce industry offers enormous business opportunities. Whether you're planning to open a physical store or launch an online brand, understanding the legal, financial, and operational requirements is key to success.
In this article, we provide a step-by-step guide on how to start a new retail or e-commerce business in India, covering everything from entity registration to payment gateway integration.
Before you begin, define your business structure clearly:
Retail Business: Physical outlet/storefront for walk-in customers
E-commerce Business: Website or marketplace selling products online
Hybrid Model: Physical store + online selling through your own website or third-party platforms
Decide on the product category, target market, and whether you will hold inventory (B2C) or operate on a dropshipping model.
Register your business in one of the following structures:
| Business Type | Best For | Registration |
|---|---|---|
| Sole Proprietorship | Small shops or individuals | Udyam/MSME |
| Partnership Firm | Two or more partners | Partnership Deed |
| Limited Liability Partnership (LLP) | Professionals and medium-scale sellers | MCA Portal |
| Private Limited Company | Scalable businesses, funding required | MCA Portal |
TAXAJ can assist you in choosing and registering the ideal business structure for your venture.
Explore Company Registration Services →
Here are the essential registrations and licenses required to start a retail or e-commerce business in India:
| License/Registration | Applicability | Issuing Authority |
|---|---|---|
| GST Registration | Mandatory for inter-state or online selling | GST Portal |
| Shops & Establishment License | For physical stores and office setup | Local Municipal Body |
| Trade License | Required by most municipalities for retail outlets | Local Authority |
| FSSAI License | If selling food items | FSSAI |
| Import Export Code (IEC) | For cross-border e-commerce | DGFT |
| Professional Tax Registration | Varies by state | State Government |
TAXAJ offers end-to-end assistance for license applications and renewals.
For e-commerce businesses, you must integrate:
Payment Gateway (like Razorpay, Paytm, CCAvenue)
Shipping Partners (Delhivery, Shiprocket, Blue Dart)
Choose platforms that support multi-channel fulfillment, easy COD settlements, and automated tracking.
Build a professional website or register on e-commerce platforms:
Own Website: Build on Shopify, WooCommerce, Wix
Marketplace: Amazon, Flipkart, Meesho, Nykaa, etc.
Ensure your website is:
Mobile-friendly
Integrated with SSL for security
Linked to analytics tools and SEO-optimized
If you're starting with a physical store, don’t forget Google My Business listing and local SEO setup.
Maintain accurate books of accounts, generate GST-compliant invoices, and file monthly/quarterly GST returns.
TAXAJ offers cloud-based bookkeeping through:
Zoho Books
Tally Prime
QuickBooks
We also handle:
GST Return Filing
TDS Compliance
Annual ROC Filings (for companies/LLPs)
Tax Planning & Assessments
Explore GST & Tax Filing Services →
To grow your retail or e-commerce business:
Register your Trademark for brand protection
Run ads on Google, Facebook, Instagram
Use influencer marketing, SEO, and email campaigns
Offer cashback, coupons, and loyalty programs
Our digital branding team can help you with logo design, website development, and ad campaigns.
At TAXAJ, we simplify the process of starting and running your business in India. Our expert team provides:
One-stop solution for business registration, licensing, and compliance
Affordable starter packages for entrepreneurs
Dedicated support for GST, accounting, payroll, and e-commerce tax issues
100% online and PAN India service delivery
India’s booming digital economy presents an exciting opportunity for retail and e-commerce entrepreneurs. With the right planning, legal setup, and compliance support, you can build a profitable business and scale it nationwide.
Need help setting up your business the right way?
Contact TAXAJ today and launch your business with confidence!