Business License for an eCommerce Store?

Posted in Technology Bites on Feb 05, 2019


Are you planning to make your Business Online?

Online Stores are common these days. People tend to buy more online as their lives are so busy.

Are you shifting your business from retail to eCommerce website? Not a bad idea. But make sure that you follow the rules before shifting your business. One most common rule is “Online Business License”

Online stores make your work simpler, faster and better.

So I’ll brief you on “Why do you need a business license for e-commerce site ” and “Disadvantages of hosting e-commerce site without the license”

First of all, we will see, do we need a business license for an online store? and the answer is YES!

Whether you have a retail store or an online store - License is compulsory. The government has made it mandatory to apply for the license and get it done before opening the offline as well as an online store as they need to keep an eye on the companies and their assets.

The rules to apply for the e-commerce business license vary from region to region and from products to products as well.

Few countries allow you to run the online store for a specific revenue threshold to reach and once you reach the position, they inform you to register for the license. Whereas, some products such as food items, edible oil, steel etc and charity websites are exempted from this procedure so you are not required to register for an e-commerce business license.

Now, we will see the disadvantages of not having an e-commerce license.

1. The government will Cease the Business

If you have not obtained the license for your eCommerce website then the government has the right to cease your business until you are done with the procedure or they can ban you for life long.

2. Imprisonment

Some countries hold the right to send the person to jail who has not taken the grant from the government and running an online store.

3. Heavy penalty

You are obliged to pay a significant amount in the form of penalty to the government. The penalty is decided by the government official and cannot be negotiated.

4. False details on the website

If the details in the website provided are false or misleading, then the government has the right to penalize the company and close the firm.

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In the blog, I’ve covered the topic “why we require e-commerce license to run the business online ”. For smooth movement of online e-commerce business, a license is a necessity. According to me, the government have made the particular rules for the betterment of our society and obeying the laws will intensify our living.

Sudha Kothapalli Author: Sudha Kothapalli Digital Marketing Executive and a learner with an ongoing curiosity to learn New Social Media techniques, writes about Digital Marketing and Technology Trends Follow Us: