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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.

By Refogo Editorial TeamUpdated 3 min read4 sources cited

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.

RegistrationIssuing authorityWhen requiredTypical validity
Entity registrationMCA (company/LLP) or none for proprietorshipBefore onboarding with gatewaysPerpetual
GST registrationGST departmentInter-state supply of goods, or above thresholdUntil cancelled
Shop and establishment registrationState labour departmentIf you have an office or warehouse, in most statesVaries by state
Legal Metrology packer registrationState Legal Metrology departmentIf you pack or import goodsGenerally one-time
TrademarkTrade Marks RegistryFor your store and product brand10 years, renewable
Import Export CodeDGFTIf you import stock or ship abroadPermanent, with annual update
Product licencesFSSAI, CDSCO, BIS etc.Category-specificVaries

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

  1. 1Set up the entity and bank account

    Choose the structure and open a current account.

  2. 2Register for GST

    Required before shipping goods to other states.

  3. 3Complete gateway KYC

    Submit entity, GST and bank documents to your payment gateway.

  4. 4Obtain product licences

    FSSAI, cosmetics, BIS or Legal Metrology registrations as needed.

  5. 5Publish policies

    Terms, privacy notice, returns, refunds and grievance officer details.

  6. 6File the trademark

    Protect the store name and logo.

  7. 7Plan DPDP readiness

    Map personal data flows before the May 2027 obligations start.

Related services

Sources

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.