1. Legality and Eligibility

• A sole proprietorship is legally allowed to conduct business through online platforms
  
• There is no restriction on selling products or services using a website, social media, or e-commerce marketplaces
  
• The owner can sell directly to customers or act as a vendor on platforms like Amazon, Flipkart, or Shopify
  
• It is suitable for small-scale and independent digital businesses
  

2. Required Registrations

• Depending on the nature and scale of the business, some registrations may be required, such as:
  
  • GST registration (mandatory if turnover exceeds limits or for inter-state sales)
    
  • Udyam (MSME) registration for recognition and benefits
    
  • Bank current account in the business name
    
• Marketplace platforms may require identity and business proof before onboarding
  

3. Online Payment and Bank Setup

• A sole proprietor can open a business bank account using licenses and registrations as proof
  
• Payment gateways like Razorpay, Paytm, or Instamojo allow integration using a sole proprietorship setup
  
• Online transactions can be received in the business account under the proprietor’s control
  
• The owner must ensure secure, compliant payment handling for customer transactions
  

4. Branding and Business Name

• The owner can use a trade name or brand for the online business, even though it is not a separate legal entity
  
• The name can appear on invoices, websites, packaging, and marketing material
  
• Proper branding helps build trust and credibility, especially for online customers
  
• Domain name and social media handles can reflect the business identity
  

5. Flexibility and Growth

• A sole proprietorship offers flexibility to quickly start, test, and scale online business ideas
  
• The owner can modify or expand offerings without formal board approval or compliance hurdles
  
• As the business grows, it can later be converted into a private limited company or LLP if needed
  
• It is well-suited for freelancers, small product sellers, service providers, and digital entrepreneurs