How to Start an Online Business in India 2022

How to Start an Online Business in India 2022: Business Guide

Want to Learn How to Start an Online Business in India 2022? Then Read this Business Guide to Get Started with your Online Business Today.

Did you always think about starting an online business but resist every time because you were not sure how?

Are you looking to widen the scope of your existing business through an online medium?

Are you an aspiring entrepreneur waiting to take advantage of the booming e-commerce business in India?

We are here to answer these questions.

This blog intends to be your business guide, walking you through how to start an online business in India, the advantages of online business, which business model to consider, and the steps to start an online business.

Let’s build your understanding from the root up and begin.


What is an Online Business?

Before absorbing how to start an online business in India, it's essential to understand what’s an online business.

The online business represents the kind of business in the digital medium (i.e., over the internet). Online business implies any business activity or transaction taking place via the internet, including selling and purchasing goods and services.

What is an Online Business?

Companies like Amazon, Flipkart, or Myntra focus on selling goods, whereas Netflix, Amazon Prime, and Disney Hot star provide online streaming services. All these companies are e-business examples.

With the aggressive e-commerce growth, the opportunities to start an online business in India are vast. Moreover, the diverse demography, burgeoning millennial population, and wide market opportunities nurture e-business in India.    


Importance of Starting an Online Business in 2022

Why is the question of how to start an online business in India relevant to answer?

It is because of the significance of online business in the current status quo. When COVID left people baffled and confined, the e-commerce industry paced up, underlining its relevance during difficult times.

The Indian Brand Equity Foundation reported the e-commerce growth trajectory in India is expected to replace the US and become the second largest e-commerce market in the world by 2034. By 2030, the Indian e-commerce market is expected to reach the US.

This reveals that online business and e-commerce are the future, with the reliance on the internet and online services increasing drastically. It's the best time to start an online business in India if you have a good business idea. For those with existing businesses, don't re-think about ramping it over online. Do it.


Advantages of setting up Online Business in India

If you are still not convinced, let’s tell you how starting an online business in India could be beneficial. Here are some advantages of starting an online business:


Growing Demand

The accentuating demand of Indian e-commerce is definitely a driving factor. With the enhanced internet penetration, the scope of online services has increased. India’s young demographic profile further mediates and expands the e-commerce opportunities. People expect online services and have a digital shopping experience at their convenience.


Increasing Investment

In the light of the extending digital literacy and e-commerce boom in India, the investments in e-commerce ventures have increased, ensuring the existing business expands their online reach while giving space for new players.


Attractive Opportunities

Opportunities are immense when it comes to online business. New and innovative business models like dropshipping make it easier to start new businesses with limited funding and without the need for physical stores. Even the education sector has been transformed with many e-learning players entering the field.


Global Access

Starting an online business also widens its reach to a global audience and market. Deep-rooted digitization coupled with globalization ensures you can easily grab the attention of the global consumers and grow on a global scale. The internet integrates the entire digital space, and if you build your online business in this sea, you’ll have enough fish to catch.


Opportunities to Manage your Business from Anywhere in the World

Opportunities to Manage your Business from Anywhere in the World

Another attractive quality of an online business is the freedom to manage your business regardless of geographical limitations. Starting an online business enables you to manage operations from anywhere. Even with your team members residing in different parts of the world, the online business can surpass this limitation.


Cost Savings

Being cost-effective is yet another reason you should be hooked on how to start an online business in India. It’s relatively cheaper to start an online business, freeing you to invest capital in setting up physical stores and infrastructures. You can direct your investments towards website designing with the extra expenditure out of the picture.


Types of Business Models to Consider

It's helpful to know different business models for you to decide how to start your online business in India and which model to adopt. Here are some business models to consider before you start your own business:



This business model utilizes e-commerce platforms or mediums to start your business. Platforms like Amazon, Shopify, or Alibaba lets you quickly set up your online business. Selling, buying, and acquiring consumers becomes easy when your business is established on well-known platforms with a good reach.

For instance, given the popularity and reach of Amazon, selling your products through Amazon exposes your business to a loyal consumer base of Amazon, adding to your product’s reach. Based on the nature of the marketplace and vendors, e-commerce breaks down into the following:


Single-vendor marketplace

In a single-vendor marketplace, sellers sell their goods or services to multiple consumers. For instance, H&M sells its products online to its consumers. Here the competition is less, and the scope of relationship building with consumers is more.


Multi-vendor marketplace

Conversely, multiple sellers sell their products or services to different consumers in a multi-vendor market space. Compared to a single vendor, the competition is more, and the consumer has a variety of products to pick from.


Affiliate Marketing

Affiliate Marketing

Affiliate marketing business model is one of the most lucrative ways to promote your online business. Affiliates advertise and promote your products/ services with consumers giving your new leads, sales, and driving traffic to your website. It’s a win-win scenario where the affiliates earn commission by promoting your business and getting consumers. Especially if you identify the right affiliates, like social media influencers, your online business can take off.


Software as a Service (SaaS)



In the SaaS business model, the skills are made available for the consumers as a service to subscribe to. This service-oriented business model equipped you to sell your skillset to different customers. For instance, customer relationship management software proves beneficial for companies or corporations to manage customer relationships efficiently. Create an application/ software and charge your customers a recurring fee based on your skillset and target audience.



Freelancing is yet another tested business model that easily helps you kick start your online business. You could provide services to individuals, consumers, or businesses utilizing your skills through freelancing. Suppose you are a graphic designer. With your portfolio, you could attract clients in need of designing their logo, UI, product packaging, or magazine covers.


Coaching and Consulting

You could become a coach or a consultant if you have the knowledge to guide your clients or solve their specific problems. This business model is a good way to sell your domain expertise and acquire clients or customers for the right price.


Information Products

Digital literacy and internet penetration have enhanced people's reliance on the internet for information. The information product business takes advantage of this fact. This business model involves a detailed explanation of how something works in a methodological and easily understandable manner.


How to Register Online Business in India

Answering the question how to start an online business in India would be easy if you know the technicalities of registering your online business. We have highlighted the steps to start an online business below:


Step 1: First, apply for Directors’s Identification Number (DIN) via online or offline mode.

  • Offline mode- Download the DIN application form (i.e., form 3) from the Ministry of Corporate Affairs website and submit it via post.
  • Online- Apply online through the Ministry of Corporate Affairs website by attaching the required documents.
  • Have the Permanent Account Number (PAN) details Digital Signature Certificate ready.

Step 2: Check the availability of your company’s name and get it approved through the Registrar of the Companies (ROC).

Step 3: Within six months you could incorporate the company once its name is confirmed.

Step 4: Next, acquire the following:

  • Goods and Service Tax (GST) certification
  • Shops and Establishment license (i.e., for payment gateway integration)
  • Professional Tax (PT)

Step 5: Apply for Provident Fund (PF) and medical insurance of employees (i.e., via Employees State Insurance Corporation) .

Step 6: Don't forget to apply for the Certification of Company’s Incorporation to officially register your company under the Company’s Act of 2013.

Bonus information: It’s a good idea to register your brand and trademarking its products, services, or company asserting the uniqueness of your brand.


Steps to Start an Online Business in India 2022

Here’s a quick 11 step guide on how to start your online business in India:

Step 1: Choose your Business Model

Step 2: Choose your Target Market Field

Step 3: Do Market Research

Step 4: Define your Problem Statement

Step 5: Find a Solution to your Problem

Step 6:  Set Realistic Goals and Expectations

Step 7: Perform SWOT Analysis


Step 8: Get Feedback and Improve

Step 9: Register Your Business and Establishing your Business Legally

  • Decide upon the Legal Structure of your Online Business
  • Enquire if you need to get a Tax Identification Number for your   Business
  • Get the necessary Licenses and Permits to Run your Online Business

Step 10: Opening a Bank Account

Step 11: Build your Business Website

  • Using a Pre-Built Platform
  • Building a Website from Scratch

Step 12: Payment Gateways

Step 13: Supply Chain and Logistics

Step 14: Attracting Customers to your Website

  • SEO Marketing
  • Advertisements
  • Promotions
  • Word of Mouth
  • Retargeting the potential consumers
  • Do’s and Don’ts of Digital Marketing for your Online Business


Online Business Examples

Now that you have a handle on how to start your online business online, you can materialize your business idea. But if you are an aspiring entrepreneur looking for e-business examples, we have some business ideas that could help you decide.

  • Dropshipping business
  • Start your own line of clothing
  • Become an online coach or counselor
  • Become an influencer
  • Dip your toe in affiliate marketing
  • Freelance your skills
  • Become an app or website developer
  • Launch a podcast
  • Focus on niche business
  • Book publishing
  •  Sell artisan products


Depending on your calling and interest, pick an e-business venture and become a part of the online business community.  To know more about the online business trends of 2022, check out this page.

How to Make a Business Plan

Starting an online business is not possible without a clear vision and a business plan. We have some pointers on how to make a business plan, making the question of how to start an online business in India easier.

Here’s a quick stepwise guide on drafting a business plan:

Step 1: Start with an executive summary. Introduce your business with details on key members, address, business’s name & background, and services or goods offered.

Step 2: Draft your business/ company description. Highlight your target market, how you differ from your competitors, and what you're capitalizing on.

Step 3: Summarize the market research and competitor analysis.

Step 4: Service/ product description

Step 5: Request finding based on the marketing and sales strategy

Step 6: Provide financial analysis or projects to represent your business’s stability

Step 7: Include appendix for additional documents, patents, charts, or other information.


Useful Tips for Online Business

By now, your understanding on  how to start an online business in India should have strengthened. As an added bonus we have a few online business tips for you that may help you business:

  • Integrate, update, and organize your online content frequently. For an e-business, online assets are everything.
  • Always keep a tab on your competitors
  • Maintain your company and customer’s records
  • Uphold your brand’s reputation- invest in marketing strategies like Affiliate, social media, SEO.
  • Analyze and be aware of the social media trends
  • Don’t give up easily, be persistent with your efforts


How can Amazon Business help in Starting an Online Business in India?

Amazon could help launch your online store by saving you from the hassle of website creation. With Amazon, you could easily start your e-business swiftly by becoming a seller on Amazon. To become an Amazon seller, all you need are GST details, PAN details, and a working email ID.

Once you become a registered Amazon seller, listing your products is easy. You have to pick the products from the existing listing page, and your online store is open on Amazon for business. Click here for a walk-through on how to list your products on Amazon.

Make a leap towards your dream and register as an Amazon seller here.


We hope this guide was significant in asserting how to start an online business in India. The dynamic India market, accentuating the scope of e-commerce, endless business scope, deep-rooted globalization, and unique demography, presents an ideal blend for starting online. Don’t be afraid to seize the sea of opportunities around you and materialize your business ideas in virtual space.


Explore our Buying Guides


  • A no/ zero investment online business represents e-business ventures not requiring any capital/ money to start. Although there’s some cost associated with zero investment e-business (i.e., for domain name registration or virtual workspace), it’s negligible compared to the expenditure required for starting a traditional business (i.e., infrastructure, inventory, office space).

    Some examples of zero online investment business are:

          Affiliate marketing

          Creating digital products

          Selling domain expertise, skillset, or service




  • Starting an online business is exciting, but here are some things to avoid while starting an online business:

          Setting unrealistic expectations or business goals

          Not pinpointing the needs of the target audience correctly

          Proving solution for an unimportant problem

          No standing out from your competition

          Miscalculating the starting capital required for your business

          Setting out alone without the right help

          Dropping the ball on customer service

          Not thinking about the marketing strategy and channels


  • Digital space presents many ways to conduct e-business. Some of the tried out and popular models for conducting online business are:

    ●      E-commerce store

    ●      Affiliate marketing

    ●      Dropshipping

    ●      Freelancing

    ●      Consulting and coaching online

    Information products

  • It all comes down to effectively communicating with your audience. The communicated content should resonate with the audience for social media marketing to work and cause the desired impact.

    Rather than talking down on consumers, social media marketing should attempt to communicate with the audience. Studying consumer behavior, needs, buying habits, and problems could make any marketing strategy stick.


  • You may not necessarily need a lawyer when you start a business, but a lawyer's insight proves beneficial in the later stages of your business. For instance:

          Hiring personnels

          Signing complicated contracts with suppliers, manufacturers, or clients.

          Protecting intellectual property and patents

          While applying for business license

          For knowledge on business taxes, labor laws, and accounting laws


  • If you are running short on starting capital, there are many ways to raise funds to support your business. Some of them are listed below:

    ●      Crowdfunding

    ●      Bootstrapping or self-financing

    ●      Taking out business loans under government schemes

    ●      Getting a venture capitalist to invest in your business

    ●      Bagging an angel investor

    ●      Peer-to-peer lending

  • Although they may appear synonymous, the terms e-commerce and e-business have different meanings. E-commerce implies the activities associated with selling and buying products or services online or virtually.

    However, e-business is an umbrella term, inclusive of all the dimensions, activities, and transactions in an online business. In short, e-commerce is a part of e-business.

  • A business that operates only on the internet without a physical store is known as a pure-play business. Virtual space or cyberspace is the only source of business operations for pure-play businesses. Netflix is an example of a pure-play business.

    Those businesses focusing on online business operations, regardless of physical stores, are referred to as brick-and-mortar businesses.

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