How to start a Shopify or own-website online store in India: registrations and licences
Own-website store licences in India: GST for inter-state sales, gateway KYC, e-commerce rules, Legal Metrology and data protection duties.
Short answer
An own-website store on Shopify, WooCommerce or similar needs a legal entity or proprietorship, a current account, GST registration if you ship goods to other states, and payment gateway KYC. You must publish seller details, returns and grievance policies under the Consumer Protection (E-Commerce) Rules 2020, show Legal Metrology declarations on product pages and plan for DPDP Act obligations.
- GST for inter-state goods sales
- Registration required regardless of turnover
- Consumer law
- Consumer Protection (E-Commerce) Rules 2020
- Data protection
- DPDP Rules 2025, main duties from 13 May 2027
- Payment gateways
- Need business KYC and a current account
- Common structure
- Proprietorship, LLP or private limited company
Choosing a structure for an online store
Payment gateways and couriers will onboard a proprietorship, but settlement limits and documentation are often easier for companies and LLPs. If you plan to raise funds or build a brand with investors, start with a private limited company.
A proprietorship can still be the right first step for a founder testing products. A GST certificate or Udyam registration usually serves as proof of business when opening a current account in the proprietor's trade name.
Registrations for an own-website store
Unlike marketplace sellers, own-website sellers do not benefit from the 2023 enrolment exemption, which applies only to supplies through e-commerce operators. The general GST rules apply.
| Registration | Issuing authority | When required | Typical validity |
|---|---|---|---|
| Entity registration | MCA (company/LLP) or none for proprietorship | Before onboarding with gateways | Perpetual |
| GST registration | GST department | Inter-state supply of goods, or above threshold | Until cancelled |
| Shop and establishment registration | State labour department | If you have an office or warehouse, in most states | Varies by state |
| Legal Metrology packer registration | State Legal Metrology department | If you pack or import goods | Generally one-time |
| Trademark | Trade Marks Registry | For your store and product brand | 10 years, renewable |
| Import Export Code | DGFT | If you import stock or ship abroad | Permanent, with annual update |
| Product licences | FSSAI, CDSCO, BIS etc. | Category-specific | Varies |
Tax rules for website sellers
Section 24 of the CGST Act requires registration for anyone making inter-state taxable supplies of goods, whatever their turnover. Since most online stores ship nationwide, register before launch. Service sellers, such as online course creators, follow the normal threshold for services.
Selling to overseas customers is an export. Register for an Import Export Code, file a Letter of Undertaking each year to export without paying IGST, and keep shipping and payment records. Payment gateway fees carry 18% GST, which you can claim as input tax credit when you sell taxable goods.
Consumer and data protection duties
The e-commerce rules apply to sellers who run their own platform. Display your legal name, address, customer care contact and a grievance officer who acknowledges complaints within 48 hours and resolves them within one month. Publish clear return, refund, shipping and cancellation policies, and avoid fake reviews or hidden charges.
The DPDP Rules 2025 were notified in November 2025 with a phased start. Core duties such as notices, security safeguards, breach reporting and parental consent for children's data apply from 13 May 2027. Use the lead time to map what customer data you collect and why.
What to show on product pages
Legal Metrology rules require online sellers to display the same mandatory declarations that appear on the package: name and address of the manufacturer, packer or importer, generic name, net quantity, MRP inclusive of all taxes, month and year of manufacture or import, country of origin and consumer care details.
Category rules add more. Food products need ingredient lists, allergen information and the FSSAI licence number. Cosmetics need ingredient and manufacturer licence details. Missing declarations can lead to penalties under Legal Metrology law and complaints under consumer protection law, so build them into your product page template from day one.
Pitfalls for own-website sellers
Shopify and other platforms provide the technology, but the legal obligations sit with you as the seller, including what appears on product pages and checkout.
- Launching nationwide shipping without GST registration.
- Copying another site's terms without adapting them to Indian consumer law.
- Showing prices without stating that MRP includes all taxes.
- Storing card details yourself instead of relying on tokenised gateway flows.
Step by step
- 1Set up the entity and bank account
Choose the structure and open a current account.
- 2Register for GST
Required before shipping goods to other states.
- 3Complete gateway KYC
Submit entity, GST and bank documents to your payment gateway.
- 4Obtain product licences
FSSAI, cosmetics, BIS or Legal Metrology registrations as needed.
- 5Publish policies
Terms, privacy notice, returns, refunds and grievance officer details.
- 6File the trademark
Protect the store name and logo.
- 7Plan DPDP readiness
Map personal data flows before the May 2027 obligations start.
Related services
Sources
- GST Council: Notification 34/2023-Central Tax (ECO supplier exemption)
- Legal 500: A closer look at the DPDP Rules 2025
- S.S. Rana: LMPC registration under Legal Metrology rules
- Taxaj: Annual updation of Import Export Code
Written by the Refogo Editorial Team from the official sources above and checked on 2026-10-31. Laws, rates and due dates change, and authorities often extend deadlines, so confirm your own case with a qualified professional. This is general information, not legal or tax advice. Read our editorial policy or report an error to support@refogo.com.
Common questions
Do I need GST to start a Shopify store in India?
If you sell goods to customers in other states, yes, from the first sale. The turnover threshold applies only to sellers making purely intra-state supplies.
Does the e-commerce enrolment exemption apply to my own website?
No. Notification 34/2023 covers supplies made through e-commerce operators, such as marketplaces, not sales through your own website.
Do I need a trade licence to sell online?
It depends on your city and whether you run a physical office or warehouse. Many states require a shop and establishment registration for business premises.