As of 2024, here are the key legal requirements for dropshipping in India:

  1. Business Registration:
  • Register your business as a sole proprietorship, partnership, LLP, or private limited company based on your needs.
  1. GST Registration:
  • If your turnover exceeds ₹20 lakh (₹10 lakh for special category states), you must register for Goods and Services Tax (GST) and file regular returns.
  1. Import/Export Regulations:
  • If sourcing products internationally, comply with import regulations and obtain necessary licenses. Register with the Directorate General of Foreign Trade (DGFT) if required.
  1. Trademark and Copyright Compliance:
  • Ensure that the products you sell do not infringe on any trademarks or copyrights.
  1. Consumer Protection Laws:
  • Follow the Consumer Protection Act, ensuring clear communication regarding product details, pricing, and return policies.
  1. E-commerce Regulations:
  • Adhere to the rules set by the Ministry of Electronics and Information Technology (MeitY) for e-commerce platforms, including data protection and consumer rights.
  1. Banking and Payment Gateway:
  • Set up a business bank account and choose a compliant payment gateway that meets regulatory standards.
  1. Record Keeping:
  • Maintain accurate records of transactions, supplier agreements, and returns for auditing purposes.

Consulting a legal expert or business advisor can help ensure that you meet all requirements effectively.