E-commerce has been trending as a mode of business in India in the past few years. The industry is expected to reach over USD 70 billion by value at the end of 2022. Several start-ups and small businesses, which begin activities at a smaller scale for a limited customer base, are gradually shifting their operations online, recognizing and realizing the potential for rapid growth and development.
For such aspiring businesses, a company status is apt as there are hardly any restrictions on capital, investments, number of shareholders, number of shares issued, no of directors and managers appointed, area of operation, etc. Moreover, e-commerce businesses need to collaborate with banks and payment gateways to facilitate online payment on their websites. For this purpose, banks and payment gateways prefer registered entities like companies, over unregistered entities like proprietorship and partnership firms (optional to register).