Setting Up an eCommerce Company in India: A Complete Guide for Cross-Border Sellers

India is the world''s fastest-growing ecommerce market, and for cross-border sellers — particularly those supplying to Amazon India or sourcing from Indian manufacturers — having a registered Indian entity unlocks lower tax rates, GST input credits, and access to export incentive schemes.

But Indian company law has layers: the structure you choose on day one affects your tax liability, compliance burden, and ability to repatriate profits for years to come.

Choosing the Right Business Structure

Private Limited Company (Pvt Ltd)

The most common structure for serious ecommerce ventures. It offers limited liability, easier investment fundraising, and a clear corporate identity. Minimum paid-up capital requirements were removed in 2015, making it accessible to early-stage businesses. Compliance burden is moderate — annual audits, ROC filings, and board meeting minutes are required.

Limited Liability Partnership (LLP)

LLPs combine the flexibility of a partnership with limited liability. They have lower compliance requirements than a Pvt Ltd but cannot issue equity shares — which limits fundraising options. Suitable for small operations or consulting-led businesses.

One Person Company (OPC)

A single-founder structure introduced in 2013. Simple to manage but restricted to Indian residents and businesses below certain revenue thresholds.

Registration Steps

1. Director Identification Number (DIN) — Every director needs one; apply via MCA21 portal.
2. Name approval — File RUN (Reserve Unique Name) on the MCA portal.
3. Incorporation documents — Draft MOA and AOA, file SPICe+ form.
4. PAN and TAN — Issued alongside incorporation certificate.
5. GST Registration — Mandatory once annual turnover exceeds ₹40 lakhs (₹20 lakhs for service businesses).
6. Bank account — Open a current account in the company''s name.

Platforms That Can Help

The end-to-end process used to take months through traditional CA firms. Several platforms have digitised and streamlined the process significantly.

Startupwala specialises in company registration, GST filings, and post-incorporation compliance for ecommerce businesses. They handle the MCA and GST portals on your behalf and offer transparent fixed-fee packages.

Zolvit (formerly Vakilsearch) is one of India''s largest legal-tech platforms, offering incorporation, trademark registration, and ongoing compliance management with a dedicated relationship manager.

For businesses wanting to set up a global holding structure alongside an Indian subsidiary, Firstbase handles US entity formation and can be paired with an Indian registration service for a clean two-entity structure.

Tax Considerations for Ecommerce

• GST on marketplace sales — Amazon India and Flipkart collect GST at source (TCS) on seller sales. As a registered seller you can claim this as an input credit.
• Import duty on sourced goods — If importing from overseas suppliers, factor in Basic Customs Duty and IGST on imports.
• Transfer pricing — If your Indian entity transacts with a related overseas entity, transfer pricing rules apply.

Key Takeaway

Incorporating in India is faster and cheaper than it used to be — the whole process can be completed in under 2 weeks with a good service partner. The compliance ongoing costs are modest for a business generating meaningful revenue, and the tax and operational benefits of a registered entity far outweigh the setup effort.