How to become Flipkart Seller & Sell on Flipkart
How to become Flipkart Seller & Sell on Flipkart
E-commerce is booming in India – thanks to shopping portals like Flipkart, SnapDeal and Amazon, which has revolutionized the online shopping experience for Indian consumers. Innovative models like cash on delivery and same-day delivery backed by low prices have spurred more customer to purchase online, making Flipkart – India’s largest electronic commerce store. Flipkart sold merchandize worth more than USD 1 billion during the financial year 2013-14 and has a customer base of over 2.6 crores registered users. Flipkart currently ships over 50 lakhs shipments each month and generates over 80 lakh daily page visits. Therefore, there is a tremendous business opportunity for those who sell on Flipkart by becoming a Flipkart seller. In this article, we look at how to become a Flipkart seller and sell on Flipkart.
How to become a Flipkart Seller
To sell on Flipkart, a person or business must become a Flipkart Seller by signing on with Flipkart. The process for signing on as a Flipkart Seller is easy and can be started from the Flipkart Seller homepage. A person or business can signup as a Flipkart seller by providing information about the business and the products the seller proposes to sell through Flipkart. Some of the details that must be provided and verified during the Flipkart Seller registration process include:
- Name
- Email address
- Phone number
- Pickup address/business address
- Categories of product the business is interested in selling through Flipkart
- Business registration documents
- Tax registration documents
Business Registration
In addition to the basic information about the seller, the following business-related information and documents must be submitted to Flipkart during the Flipkart seller registration process. Some of the documents to be submitted will vary depending on the type of business registration, as follows:
Selling on Flipkart as an Individual or Sole Proprietorship
If an individual decides to sell on Flipkart on his/her own name and legal standing. The business will automatically be perceived to be a Sole Proprietorship business. A sole proprietorship business does not offer limited liability protection to the promoter, is not easily transferable, cannot have investors or partners, not very scalable and has limited capacity to obtain bank loans. Therefore, it is best to avoid becoming a seller on Flipkart using a sole proprietorship entity. In case a sole proprietorship is chosen, the following documents may have to be submitted:
Identity Proof
- Signed declaration on the business letterhead, stating that the individual owns and manages the bank account held in the name of the business.
- Statement of bank accounting registered on Flipkart payment gateway.
- Passport
- PAN Card
- Voters ID
- Driving License
- Any other photo identity card
- Letter from a recognized Public Authority or Public Servant verifying identity.
Address Proof
- Telephone bill (Fixed line) in the name of the Proprietorship firm
- Electricity bill in the name of the Proprietorship firm
- Bank Account Statement in the name of the Proprietorship
- Letter from Employer
- Ration card
- Lease or license agreement
- Letter from a recognized Public Authority or Public Servant verifying identity.
Selling on Flipkart as a Private Limited Company
Becoming a Flipkart Seller – as a Private Limited Company is one of the most preferred methods of becoming a Flipkart Seller as it provides limited liability protection to promoters, separate legal entity, easy transferability, ability to take on investors or partners and quickly scale-up operations. The following documents must be submitted for a Private Limited Company:
Identity Proof
- Copy of Certificate of Incorporation of Private Limited Company
- Copy of Memorandum of Association
- Company PAN Card
Address Proof
- Company Telephone bill (Fixed line)
- Company Electricity bill
- Lease or rental agreement
Selling on Flipkart as an LLP / Partnership Firm
A Flipkart seller can also be a Partnership Firm. However, it is preferable to register an LLP (Limited Liability Partnership) while signing on as a Flipkart seller as it provides limited liability protection, easy transferability, separate legal entity and other documents required to become a Flipkart seller quickly.
Identity Proof
- Partnership registration or LLP Incorporation Certificate
- Partnership deed
- Power of Attorney granted to a Partner or an Employee of the LLP or Partnership firm to transact business on its behalf
- Any document identifying Partners and the person holding the Power of Attorney with their photographs
- PAN Card of the LLP or Partnership Firm
Address Proof
- Any officially valid document confirming the address of the Partners and the persons holding the Power of Attorney
- Firm/Partner’s Telephone bill
- Firm/Partner’s Electricity bill
- Lease or Rental agreement
- Company Electricity bill
- Lease or License agreement
Selling on Flipkart as a Trust & Foundation
Trusts and Foundations can also become sellers on Flipkart. Documents similar to the above documents must be provided in the name of the Trust or Foundation to establish the legal identity of the Trust / Foundation and the address of the Trust / Foundation.
Flipkart Seller: Tax Registration Requirement
Once the Flipkart seller has decided on and registered a suitable business entity for the proposed business, the following tax registration and bank account in the name of the business or entity will be required:
- Business name
- PAN – PAN Card of the individual or private limited company or partnership
- TIN – TIN Number is also known as Tax Identification Number / Sales Tax Number / CST Number in the name of a business
- TAN – TAN is required for Tax Deduction at Source (TDS) – in the name of a business
- Bank account name
- Bank account number
- Bank IFSC code
Starting to sell on Flipkart
Once the promoters of the business have provided the above information, documents and registrations, the business can commence selling of its products on Flipkart. Once, the formalities for Flipkart seller account registration are complete, and the business can set up the storefront and list products to sell on Flipkart – to start sales.
To become a Flipkart Seller, visit Flipkart Seller Registration page. To start a business or obtain registrations required to become a Flipkart seller, visit IndiaFilings.com.