{"id":101328,"date":"2021-01-21T05:18:10","date_gmt":"2021-01-21T05:18:10","guid":{"rendered":"https:\/\/legalwindow.in\/?p=101328"},"modified":"2021-08-14T12:53:37","modified_gmt":"2021-08-14T07:23:37","slug":"guidelines-on-laws-and-regulations-for-e-commerce-sector","status":"publish","type":"post","link":"https:\/\/www.legalwindow.in\/blog\/guidelines-on-laws-and-regulations-for-e-commerce-sector\/","title":{"rendered":"Guidelines on laws and regulations for E-Commerce Sector"},"content":{"rendered":"\r\n<p style=\"text-align: justify;\">With the advancement of smart phones and internet users around the world, e-commerce business is booming and sky rocketing at an unimaginable pace. Your E-commerce store is just a click away from everyone across the globe. However, entering into this business requires a lot of formalities to be fulfilled including the compliances, laws to adhere with, and avoidance of unnecessary litigation against these businesses in the future.<\/p>\r\n<p>\r\n\r\n<\/p>\r\n<h3 class=\"wp-block-heading\"><strong>What are E-Commerce Services?<\/strong><\/h3>\r\n<p>\r\n\r\n<\/p>\r\n<p style=\"text-align: justify;\">An individual or entrepreneur requires a structured business plan to start an e-commerce website. Along with this business plan, the individual requires competent regulatory advice on starting an e-commerce company. Advice on E-commerce services would include the type of business structure which is feasible to start an e-commerce company. Apart from these, e-commerce services cover all the areas which are crucial for starting an e-commerce company.\u00a0<\/p>\r\n<p>\r\n\r\n<\/p>\r\n<h3 class=\"wp-block-heading\"><strong>Growth of E-Commerce in India<\/strong><\/h3>\r\n<p>\r\n\r\n<\/p>\r\n<p style=\"text-align: justify;\">India is rapidly marching towards becoming a digitally empowered society. The push for e-governance, the proliferation of smartphones, increasing Internet access and booming digital payments are fueling the country\u2019s journey towards a trillion-dollar digital economy by 2025. The widespread acceptance of Digital is being seen as a catalyst for overall economic growth, and with the combination of favorable demographics and policy reforms, India presents a unique and powerful growth story.<\/p>\r\n<p>\r\n\r\n<\/p>\r\n<p style=\"text-align: justify;\">With Internet penetration expected to almost double to 60% by 2022, the country is arguably the world\u2019s most promising Internet economy, with a rapidly increasing \u2018netizen\u2019 population. With improving data affordability, consumption growth and newer financial products, the e-commerce market is set to grow, be it across e-tail, travel, consumer services or online financial services. From the next set of online shoppers, three out of every four customers are expected to come from Tier II cities or beyond, and a vast majority of them would be less tech-savvy, seek greater transparency from brands and prefer consuming content in local languages.<\/p>\r\n<p>\r\n\r\n<\/p>\r\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"538\" class=\"wp-image-101330\" title=\"Guidelines on laws and regulations for E-Commerce Sector\" src=\"https:\/\/legalwindow.in\/wp-content\/uploads\/Guidelines-on-laws-and-regulations-for-E-Commerce-Sector-1-1024x538.png\" alt=\"Laws and regulations for e-commerce.\" srcset=\"https:\/\/www.legalwindow.in\/blog\/wp-content\/uploads\/Guidelines-on-laws-and-regulations-for-E-Commerce-Sector-1-1024x538.png 1024w, https:\/\/www.legalwindow.in\/blog\/wp-content\/uploads\/Guidelines-on-laws-and-regulations-for-E-Commerce-Sector-1-600x315.png 600w, https:\/\/www.legalwindow.in\/blog\/wp-content\/uploads\/Guidelines-on-laws-and-regulations-for-E-Commerce-Sector-1-300x158.png 300w, https:\/\/www.legalwindow.in\/blog\/wp-content\/uploads\/Guidelines-on-laws-and-regulations-for-E-Commerce-Sector-1-768x403.png 768w, https:\/\/www.legalwindow.in\/blog\/wp-content\/uploads\/Guidelines-on-laws-and-regulations-for-E-Commerce-Sector-1.png 1200w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\r\n<p>\r\n\r\n<\/p>\r\n<h3 class=\"wp-block-heading\"><strong>Models of E-Commerce Business<\/strong><\/h3>\r\n<p>\r\n\r\n<\/p>\r\n<p>E-commerce has four models which represent a range of various transactions which varies from participant to participant \u2013<\/p>\r\n<p>\r\n\r\n<\/p>\r\n<ul class=\"wp-block-list\">\r\n<li class=\"lists\"><strong>B2B Commerce<\/strong>: B2B requires two or more business entities. The application is utilized to facilitate Supplier &amp; Buyer centric market electronically. The parties of B2B are Business Partner. It is the most extensively developing E-commerce trend nowadays.<\/li>\r\n<\/ul>\r\n<p>\r\n\r\n<\/p>\r\n<ul class=\"wp-block-list\">\r\n<li class=\"lists\"><strong>B2C Commerce<\/strong>: B2C commerce has gained popularity to a simplified way to buy products. It refers to buying and selling of products i.e. goods or services on the website. In B2C Commerce goods can be easily transformed into the digital format.<\/li>\r\n<\/ul>\r\n<p>\r\n\r\n<\/p>\r\n<ul class=\"wp-block-list\">\r\n<li class=\"lists\"><strong>C2C Commerce<\/strong>: It refers to online dealing of goods and services between people where two people deal online on the basis of their requirement and needs and are becoming more popular these days. It promotes consumer dealings with other consumers on the website.<\/li>\r\n<\/ul>\r\n<p>\r\n\r\n<\/p>\r\n<ul class=\"wp-block-list\">\r\n<li class=\"lists\"><strong>C2B Commerce<\/strong>: It enables a consumer to interact with the company for the price of product and services offered by a company. This provides consumers with market strategies.<\/li>\r\n<\/ul>\r\n<p>\r\n\r\n<\/p>\r\n<h3 class=\"wp-block-heading\"><strong>Laws applicable on E-Commerce Business in India<\/strong><\/h3>\r\n<p>\r\n\r\n<\/p>\r\n<p>There are various statutes that may govern the establishment of digital business in India depending upon the nature, purpose and manner of conducting the digital business, such as:<\/p>\r\n<p>\r\n\r\n<\/p>\r\n<ul class=\"wp-block-list\">\r\n<li>IT Act, 2000<\/li>\r\n<li>Payment and Settlement Systems Act 2007 (PSS Act);<\/li>\r\n<li>Foreign Exchange Management Act 1999;<\/li>\r\n<li>Companies Act 2013; and<\/li>\r\n<li>Trademarks Act 1999.<\/li>\r\n<li><a href=\"https:\/\/legalwindow.in\/complete-guide-on-foreign-direct-investment-in-an-llp-limited-liability-partnership\/?amp=1\">Foreign Direct Investment Policy<\/a><\/li>\r\n<li>Payment and Settlement Act, 2007 and other RBI regulations on payment mechanisms<\/li>\r\n<li>Labelling and Packaging<\/li>\r\n<li>Legal Metrology Act, 2009 read with Legal Metrology (Packaged Commodity) Rules, 2011<\/li>\r\n<li>Sales, Shipping, Refunds and Returns<\/li>\r\n<li>Consumer Protection Act, 1986<\/li>\r\n<li><a href=\"https:\/\/www.incometaxindia.gov.in\/pages\/acts\/income-tax-act.aspx\" target=\"_blank\" rel=\"noreferrer noopener\">Income Tax Act, 1961<\/a><\/li>\r\n<li>Double Taxation Avoidance Agreement<\/li>\r\n<li>Good and Services Tax<\/li>\r\n<li>Indian Contract Act, 1872<\/li>\r\n<li>Indian Copyright Act, 1957<\/li>\r\n<li>The Patents Act, 1970<\/li>\r\n<li>Intellectual Property Issues<\/li>\r\n<li>Labour laws<\/li>\r\n<\/ul>\r\n<p>\r\n\r\n<\/p>\r\n<p style=\"text-align: justify;\">The procedure and manner of establishing the digital business will vary from case to case depending on various factors including the nature of business, residential status of the shareholders, nature of payment system implemented, etc.<\/p>\r\n<p>\r\n\r\n<\/p>\r\n<h3 class=\"wp-block-heading\"><strong>Development of E-Commerce Activities in India<\/strong><\/h3>\r\n<p>\r\n\r\n<\/p>\r\n<p style=\"text-align: justify;\">According to the Global Development Index (GDI), India is ranked as one of the\u00a0largest sectors for online retail\u00a0markets and e-commerce activities. Factors that affect this are constant urbanization, digitization, large population, and the ability for growth. In retail trading, the e-commerce sector has witnessed phenomenal growth in the past decade. Due to this, foreign companies and governments are willing to invest more in India. The E-commerce sector contributes to about 10% of the and generates about 8% of the employment of the country.<\/p>\r\n<p>\r\n\r\n<\/p>\r\n<p style=\"text-align: justify;\">Research suggests that the e-commerce sector would reach a figure of USD 1.3 trillion by 2020. However, Covid-19 pandemic has devastated the global economy. With the downfall of the global economy, the e-commerce sector in India has also been drastically affected.<\/p>\r\n<p>\r\n\r\n<\/p>\r\n<h3 class=\"wp-block-heading\"><strong>Scope of E-commerce Business<\/strong><\/h3>\r\n<p>\r\n\r\n<\/p>\r\n<p style=\"text-align: justify;\">With the launch of 4G networks and smart phones, people have entirely engaged themselves with the internet. Reports say that India has the second highest number of internet users in the world. Furthermore, the number is witnessed to be growing with each passing day. This enormous growth has already led to ever-increasing e-commerce opportunities in India and around the world.<\/p>\r\n<p><a href=\"https:\/\/legalwindow.in\/private-limited-company\/\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-103873 size-full\" src=\"https:\/\/legalwindow.in\/wp-content\/uploads\/Private-Limited.jpg\" alt=\"Register Private limited Company \" width=\"1000\" height=\"200\" srcset=\"https:\/\/www.legalwindow.in\/blog\/wp-content\/uploads\/Private-Limited.jpg 1000w, https:\/\/www.legalwindow.in\/blog\/wp-content\/uploads\/Private-Limited-600x120.jpg 600w, https:\/\/www.legalwindow.in\/blog\/wp-content\/uploads\/Private-Limited-300x60.jpg 300w, https:\/\/www.legalwindow.in\/blog\/wp-content\/uploads\/Private-Limited-768x154.jpg 768w\" sizes=\"auto, (max-width: 1000px) 100vw, 1000px\" \/><\/a><\/p>\r\n<h3><strong>Market size and future<\/strong><\/h3>\r\n<p>\r\n\r\n<\/p>\r\n<p style=\"text-align: justify;\">Led by Amazon India, Paytm Mall, and Flipkart, the online sales retail in India is estimated to have grown by 31 percent to touch US$ 32.70 billion in 2018 approximately. However, the Indian e-commerce market is anticipated to rise to US$ 200 billion by 2016 from US$ 38.5 billion in 2017.<\/p>\r\n<p>\r\n\r\n<\/p>\r\n<h3 class=\"wp-block-heading\"><strong>Reasons why you must set your foot in this E-commerce Bubble<\/strong><\/h3>\r\n<p>\r\n\r\n<\/p>\r\n<ul class=\"wp-block-list\">\r\n<li class=\"lists\">Increasing number of internet users<\/li>\r\n<li class=\"lists\">All time high usage of smartphones<\/li>\r\n<li class=\"lists\">Ease of doing shopping<\/li>\r\n<li class=\"lists\">Saving of time and mobility<\/li>\r\n<li class=\"lists\">Discounted online rates pulling the offline customers<\/li>\r\n<\/ul>\r\n<p>\r\n\r\n<\/p>\r\n<h3 class=\"wp-block-heading\"><strong>Takeaway<\/strong><\/h3>\r\n<p>\r\n\r\n<\/p>\r\n<p style=\"text-align: justify;\">E-commerce is considered a game-changer for the Indian economy and the future of \u201cDigital India\u201d. The success of big players in the Indian market during the Internet Age depended on their ability to adapt and evolve with the times. While few successfully changed the tides to their favour by setting up online businesses, many failed to keep up and thereby declined.\u00a0<\/p>\r\n<p><\/p>","protected":false},"excerpt":{"rendered":"<p>With the advancement of smart phones and internet users around the world, e-commerce business is booming and sky rocketing at an unimaginable pace. Your E-commerce store is just&hellip;<\/p>\n","protected":false},"author":3,"featured_media":101329,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9],"tags":[],"class_list":["post-101328","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-startup-registration"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.1 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Laws and regulations for E-Commerce Sector: Guidelines<\/title>\n<meta name=\"description\" content=\"Guidelines on laws and regulations for E-Commerce Sector. 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