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General discussion

PREREQUISITES TO START ONLINE BUSINESS?

Nov 26, 2007 1:55PM PST

A friend of mine wants to start online business-He wants to sell some products through a website(plans to get domain name registered and buying space are in the pipeline)-But want to know the prerequiste for starting the online business in India.Here are his questions

1.I want customers from all over the world to be able to buy my product. The products are limited. Product will be sold in dollars. but when i receive the payment i want them in rupees.
2. What will be the process to become a merchant.
I mean should i get my name registered-if yes-where?
3. What prerequisites should i have to start the online business?
like
1. Having a bank account. if so which type of account(current or savings)
2. having a credit card
3. having a pan card
4. having IT returns

4. i cant decide how big my business is. this is my first business. so i cant say the number of average purchases for a day.
Do they put any limit of the number of transactions per month to certain level?.

5. Which is the best to accept net payment for my requirement?
CCAVENUE or PAYPAL- which is the best option?
WHAT PAYPAL AND CCAVENUE account PREREQUISITES?

Answers,links,suggestions please....

Thanks in advance

Discussion is locked

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General advice.
Nov 26, 2007 8:59PM PST

Contact your local business-starter-office. It's called differently in each country, but I'm sure there's something like it in India also. In the US, for example, see
http://www.sba.gov/smallbusinessplanner/index.html
http://www.irs.gov/businesses/small/article/0,,id=99336,00.html
and for the UK
http://www.businesslink.gov.uk/bdotg/action/layer?topicId=1073858805
Here in Holland we call it "Kamer van Koophandel", but that's hardly interesting for you.

For all financial matters, he should contact the business adviser of his bank. For all IT matters, the ISP should be contacted.

Internet in itself doesn't pose any restrictions. Your government, however, might have laws regarding business in general and e-business in particular.

Hope this helps.


Kees

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Experience says:
Apr 12, 2008 8:16PM PDT

Merchant accounts in the beginning can be rough. You MUST buy security and fraud protection otherwise the scammers will walk all over you. Also common practice is to capture at shipping, while most merchant claim 24hour processing, this comes with a lot of fine print. Expect more like 7 business days, especially if you are a new online only business. Can you afford to wait 7 days to get paid for purchases? You need to have that operating capital lying around and untouched, using credit cards will add interest and charges to your already mounting bills.

PayPal pays up front and instantly, but the fees are very high when compared to a merchant account.

Also make sure you know the tax and shipping laws/fees pertaining to each country you wish to do business with.

Hosting for a global site can be difficult, in most cases you will need several URLs to make sure the customer has a smooth connection.

Just some random thoughts that might help. GL!

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To shpl2: about post deletion.
Apr 12, 2008 9:03PM PDT

I just deleted 5 of your 8 posts from today, because they were too explicitely commercial. That isn't allowed here.
And I've asked for a ban for your username. A website isn't acceptable as a username.

But feel free to offer great answers to our members with a new acceptable username and without a direct reference to your own business.

Kees