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The most economical way is to incorporate your firm as a sole proprietor entity. Though sole Proprietorship does not hold any legal entity, the person is responsible for his own debt. You can have contract with Y as a proprietor and you can tell customer about terms and condition. Therefore, the existence of a sole proprietorship business can be estab...
W Network
caHi, I am a software engineer and work alone. I am planning to open up and website which will be used to collect payments from accommodation hotels for their bookings. Key: X is the Customer who wants to book a room in Hotel Y. Y is the Hotel Y who gives rooms on rent for Customer X. Z is myself/my website which would be used to make payment. I would be the online aggregator who takes a commission from Hotel Y for every booking. Basically the Customer X goes to Hotel Y's website and is redirected to my Website Z for payments.
The Hotel Y gets the payment from Customer X through my Website Z. Payment gateway account is linked to Hotel Y' account, but to the customer my website Y is the payment collector. After the Customer X books the room, I will then collect the commission payments every 15 days through NEFT/Cheque from Hotel Y. I am willing to pay any taxes (if applicable). Now I (Mr. Z) would need to have a Contract with The Hotel Y. Also I need to tell the Customer X about the terms and conditions, specially the part that the payments go to the Hotel Y directly and I am just a medium. Please note I am just a normal person and not a company. Can I have such contracts with the Hotel Y? Can I tell the Customer X about the terms and conditions? How can I be safe for legal liabilities from Hotel Y? How can I be safe for legal liabilities from Customer X? I believe in startup India concept but I would like to start small as a individual. Please guide me with this.
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W Network
caThe most economical way is to incorporate your firm as a sole proprietor entity. Though sole Proprietorship does not hold any legal entity, the person is responsible for his own debt. You can have contract with Y as a proprietor and you can tell customer about terms and condition. Therefore, the existence of a sole proprietorship business can be established only through opening a bank account in the name of the proprietorship firm or obtaining licenses required for conducting the business. Since you are providing services so you have to register under New GST Act for Service Tax. You have to tie up with all major banks in India to facilitate online transaction processing to online merchants. There is no such license required from RBI. But, they are some regulations in terms of settlements of funds, which one needs to adhere to.
Best practice would be to:
- Register your business as a Private Limited Company
- Register under GST
- Draft Terms of Service and Privacy Policy
- Draft Vendor Agreement or MoU with the partners (hotels)
- Abide the Payment Gateway Guidelines
Relevant content:
- What are the entity options to register a business in India?
- Choosing business name in India? Maybe you should do it over
- When you decide to add a Director to your Company
We at Wazzeer can get your work done seamlessly, so 'Get a Wazzeer'
almost 3 years ago
View answer
Hi, I am a software engineer and work alone. I am planning to open up and website which will be used to collect payments from accommodation hotels for their bookings. Key: X is the Customer who wants to book a room in Hotel Y. Y is the Hotel Y who gives rooms on rent for Customer X. Z is myself/my website which would be used to make payment. I would be the online aggregator who takes a commission from Hotel Y for every booking. Basically the Customer X goes to Hotel Y's website and is redirected to my Website Z for payments.
The Hotel Y gets the payment from Customer X through my Website Z. Payment gateway account is linked to Hotel Y' account, but to the customer my website Y is the payment collector. After the Customer X books the room, I will then collect the commission payments every 15 days through NEFT/Cheque from Hotel Y. I am willing to pay any taxes (if applicable). Now I (Mr. Z) would need to have a Contract with The Hotel Y. Also I need to tell the Customer X about the terms and conditions, specially the part that the payments go to the Hotel Y directly and I am just a medium. Please note I am just a normal person and not a company. Can I have such contracts with the Hotel Y? Can I tell the Customer X about the terms and conditions? How can I be safe for legal liabilities from Hotel Y? How can I be safe for legal liabilities from Customer X? I believe in startup India concept but I would like to start small as a individual. Please guide me with this.
-
W Network
caThe most economical way is to incorporate your firm as a sole proprietor entity. Though sole Proprietorship does not hold any legal entity, the person is responsible for his own debt. You can have contract with Y as a proprietor and you can tell customer about terms and condition. Therefore, the existence of a sole proprietorship business can be established only through opening a bank account in the name of the proprietorship firm or obtaining licenses required for conducting the business. Since you are providing services so you have to register under New GST Act for Service Tax. You have to tie up with all major banks in India to facilitate online transaction processing to online merchants. There is no such license required from RBI. But, they are some regulations in terms of settlements of funds, which one needs to adhere to.
Best practice would be to:
- Register your business as a Private Limited Company
- Register under GST
- Draft Terms of Service and Privacy Policy
- Draft Vendor Agreement or MoU with the partners (hotels)
- Abide the Payment Gateway Guidelines
Relevant content:
- What are the entity options to register a business in India?
- Choosing business name in India? Maybe you should do it over
- When you decide to add a Director to your Company
We at Wazzeer can get your work done seamlessly, so 'Get a Wazzeer'
almost 3 years ago
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