In this article, we will explain what ESOP is, how it works, its benefits, and ESOP tax treatment. Learn more about this employee benefit plan and gain the clarity you need to decide whether to adopt it.

What are ESOPs?

The full form of ESOP is an employee stock ownership plan. An ESOP benefits the employees of an organization by providing them with an opportunity to have an ownership interest in the stocks of that organization. With this ownership interest, the employees don’t have to incur additional costs for buying stocks from the organization. Even if, in some cases, there are additional charges, they are very low. Employees can encash these stocks after a decided period.

How do ESOPs work?

Here’s how ESOPs work in India generally. The company starts by deciding the number of stocks they are willing to share and the names of the employees who are eligible to buy them. Then, they grant the stock to the employee along with a grant date. Employees cannot avail themselves of the ownership of the offered stocks before the specified grant date. Till then, the stocks stay in the trust fund. This time is called the vesting period.

Based on the ESOP rules, employees can obtain ownership of the stocks after the vesting period is over. They can buy the stocks at the assigned prices, which are typically substantially lower than the fair market prices. From then on, you can choose to retain the stock or sell it at market price and gain wealth from the asset. 

Suppose you do not complete the vesting period and leave the organization. In that case, the organization will re-purchase the ownership interest from the employee at the market price. 

What are ESOPs taxation rules in India?

Various Indian companies are offering packages to employees in the form of ESOP. But before you accept the offer, you should know all about the taxability of ESOPs. 

Tax on ESOPs is applied under two circumstances: 

• When the employee buys it from the company.

• When the employee sells it to gain wealth from their holding.

In both cases, there are tax implications, and the tax amount depends on the ESOP exercise price and market price. The exercise price is the price at which you buy the stock from the company and exercise your ESOP. 

The difference between the ESOP exercise price and the market price is taxable in the first case. The employer cuts tax deducted at source (TDS) on ESOPs from the employee’s perks, which is reflected on Form 16.

In the second case, when you sell the stock to gain capital, tax is imposed on the difference between the selling price and the market price of the share on the date when it was exercised.

Benefits of ESOP for employees

ESOPs benefit both the employer and employees. Some of the benefits employees get from ESOPs are:

• The chance to buy the company’s stocks at a lower price

When the vesting period is over, employees can buy the share from the company at a comparatively lower price than the market price. 

• shared ownership of the company

Employees get a chance to buy a share from the organization they are working in. They also get the chance to share the capital with them.

• Retirement asset

If the vesting period is long and the value of the stock grows substantially over time, then the value of the asset can get appreciated, thus supporting you in the days after your retirement. 

Final thoughts

ESOPs are plans dedicated to benefiting employees. It gives employees an ownership interest in the shares of the organization. If you want to know more about what are ESOPs and their features, read the FAQ section below.

Frequently asked questions

The post What are ESOPs? Definition, Taxation Rules, Benefits, and More appeared first on PayU Blog.

Who needs to register for GST in India? 

GST registration may sound like a lot of work. But did you know it is not mandatory for all? Here are the situations that require GST registration:

• If your business’s turnover exceeds Rs. 20 lakhs in a financial year for normal category states. For individuals living in special category states, the limit is Rs.10 lakhs.
• You receive payment for services under OIDAR (Online Information and Database Access and Retrieval). OIDAR includes activities, such as internet advertising, cloud-based services, and intangible items, such as e-books, entertainment (music, movies, online gaming), software, and any other electronic data, such as video lessons.

Why is GST for freelancers important? What are its advantages?

Because the Goods and Services Tax (GST) is an indirect tax on the supply of goods and services in India, Indian freelancers must also pay GST when their turnover exceeds Rs. 20 lakhs in a financial year. 

As freelancers, you do not receive any specific advantages of registering for GST. The benefits of GST registration are the same for everyone. Under this new GST regime, you have the option to file tax returns online. All you have to do now is go to the GST Portal, create an account, log in, and begin filing your GST returns.

The main advantage is that if you register, you will be able to claim GST credit, which may be used to balance future GST liabilities, as well as seek a GST refund (subject to certain conditions). For example, if your firm runs ads on Google to attract new clients or customers, you have to pay 18% of the total amount as GST.

Documents needed for GST registration 

Here are the documents you will require to register for GST:

1. Your photo
2. A copy of your PAN and Aadhaar card
3. Identification and residence evidence
4. A recent bank account statement or a cancelled check
5. Your digital signature
6. Electricity or telephone bill
7. Office lease agreement
8. No objection certificate

What happens after GST registration?

After you have submitted all the documents required and completed all the required formalities, you need to ensure that you follow the process to be on the right side of the law. 

When raising an invoice, you need to add the GST amount to the overall billed amount. Thus, if your billed amount is Rs. 25,000 for one client, after adding GST at the rate of 18%, the total amount that your client needs to pay will be Rs. 29,500. 

After collecting GST, you need to deposit the GST amount to the government when you file your GST returns.  

Payments T&C for freelancers

There are many terms and conditions (T&C) related to payments that apply to GST-registered freelancers.

• Depending on the type of service you provide, GST rates on your services can be 0%, 5%, 12%, 18%, or 28%. If there is no specific percentage, you need to charge your clients GST at the rate of 18%.
• After getting your GST identification number, you have to file GST regularly, i.e., monthly and yearly. This is irrespective of your current annual turnover.
• You need to make all payments online. Every year, there will be 37 returns to file: three monthly filings and one annual form.
• If you do not deposit the GST proceeds on time, you might have to pay a fine.
• To ensure that GST is deposited on time, you can issue the invoice on the 1st of the following month. This will give you enough time to pay your monthly GST bill.
• After paying all the applicable taxes, you need to submit a monthly summary return under GSTR 3B.

Do freelancers need to register for GST if they raise invoices?

• If you are a freelancer, your clients will expect you to raise invoices. When you submit an invoice, your client may deduct 10% TDS from every invoice.
• If your income is below Rs. 20 lakhs or Rs. 10 lakhs (for special category states), it is not compulsory to register for GST even if you raise invoices.
• GST-registered freelancers need to file invoices according to the latest GST laws stated by the government.
• You need to include your name, address, GSTIN for freelancers, your client’s GSTIN, Service Accounting Codes (SAC), date, amount, and signature on the invoice.

To sum it up

As all your accounts are linked with PAN and Aadhaar, the best option would be to go for GST registration.GST filing may be a little intimidating for many freelancers. Hiring a chartered accountant (CA) who has experience working with freelancers and solopreneurs will help you ensure everything is in line with the latest applicable laws.

Also read: GST Registration Guide for Startups and Small Businesses

The post GST For Freelancers: Everything You Need to Know appeared first on PayU Blog.

Best for salaried individuals: SBI SimplyCLICK Credit Card

• Joining fee – ₹499, excluding taxes
• Annual fee – ₹499, excluding taxes (returned on spending over ₹1 lakh)
  
  Key benefits:
  • Offers 10x rewards on shopping with partner brands
  • And 5x rewards on all online transaction
  • Amazon gift card worth ₹500 on welcome

Best for travel: HDFC Regalia Credit Card

• Joining fee – ₹2500, excluding taxes
• Annual fee – ₹2500, excluding taxes
  
  Key benefits:
  • 12 complimentary airport lounge access within India and 6 outside the country
  • 10,000 bonus points on spending ₹5 lakhs and 5,000 reward points, too, on spending ₹8 lakhs in a year
  • 2% foreign currency markup on international spends

Best in premium category: HDFC Diners Club Black

• Joining fee – ₹10,000, excluding taxes
• Annual fee – ₹10,000, excluding taxes
  
  Key benefits:
  • Get 5 reward points for every ₹150 you spend
  • Complimentary vouchers from partner brands for spending over ₹80,000 in a month
  • Annual memberships of Amazon Prime, Times Prime, Club Marriott, Forbes, MMT BLACK, and Zomato Pro

Best free credit card: IDFC FIRST Millenia

• Joining fee – None
• Annual fee – None
  
  Key benefits: 
  • Free for a lifetime
  • Interest-free cash withdrawal for up to 48 days
  • 10x rewards on special days and milestones

Best for beginners: HDFC MoneyBack

• Joining fee – INR 500
• Annual fee – INR 500
  
  Key benefits:
  • 2 reward points for every ₹150 spent offline (double for online shopping)
  • E-voucher of ₹500 for spending ₹5,000 in a quarter and upto ₹2,000 in a year
  • 1% fuel surcharge waiver on spending more than ₹400 on fuel

Best with zero annual fee: IndusInd Pioneer Legacy

• Joining fee – ₹45,000
• Annual fee – None
  
  Key benefits:
  • Up to 3 movie tickets for free every month
  • 1.5 reward points on every ₹100 spent
  • 6,000 additional reward points if card spending exceeds ₹6 lakhs in a year

Best for shopping on Amazon: Amazon Pay ICICI Bank Credit Card

• Joining fee – None
• Annual fee – None
  
  Key benefits:
  • 3% cashback even for non-Amazon Prime customers on Amazon shopping
  • 2% cashback on shopping with Amazon Pay partner merchants
  • 1% cash back on other payments

Best for shopping on Flipkart: Flipkart Axis Bank Credit Card

• Joining fee – ₹500
• Annual fee – ₹500, waived off on spending more than ₹2 lakhs
  
  Key benefits: 
  • Up to 5% cashback on shopping with Flipkart and Myntra
  • Flat 4% unlimited cashback on transactions with partner sites
  • 4 complimentary airport lounge access

Best rewards credit card in India for business: ICICI Business Advantage Black Card

• Joining fee – ₹1500, excluding taxes
• Annual fee – ₹1000, excluding taxes
  
  Key benefits:
  • Up to 1% cashback on all eligible transactions
  • A minimum of 5% discount on dining bills with the ICICI Bank Culinary Treats Programme
  • 2 complimentary airport lounge access per quarter

Best overall: Axis Bank ACE Credit Card

• Joining fee – ₹499, returned on spending ₹10,000 within 45 days of getting the card
• Annual fee – ₹499, waived off on spending more than ₹2 lakhs annually
  
  Key benefits:
  • 4 complimentary domestic lounge visits annually
  • 5% cashback on bill payments and recharging mobile and DTH via Google Pay
  • 20% discount on dining at more than 4000 partner restaurants

Wrap up 

Given the plethora of credit card options, choosing India’s best credit card becomes difficult. But irrespective of the choice, one thing that sets them apart is that they partner with a capable payment gateway for seamless transactions. At PayU India, we offer easy-to-integrate APIs and SDKs with complete online onboarding for our customers. Click here to learn why you should partner with PayU India. 

FAQs

The post Best Credit Card In India: Top 10 Options to Pick From appeared first on PayU Blog.

What is a payment gateway?

A payment gateway is a technology solution that allows businesses to receive payments online. Only banks can operate payment gateways. Integrating the payment gateway of each bank into their repayment systems can be a hassle for businesses. Payment aggregator companies like PayU do so on their platform to simplify the process for you. Payment getaways securely handle your customers’ payment and personal information, so you don’t need to. 

How to start using a payment gateway plugin for WooCommerce?

You can add a payment gateway in WooCommerce to start receiving money online. WooCommerce payment gateway integration is easy.

1. Provide the requested details to sign up for a PayU account.
2. Connect your personal or business bank account with your PayU account.
3. Integrate the PayU payment gateway plugin for WooCommerce on your website.

You’re now set to receive payments. When a customer pays for a purchase, the gateway establishes a secure connection with the payment processor. Once it approves the transaction, WooCommerce gets a “success” notification, indicating the payment is complete. Finally, the funds are deposited into your account as per the settlement terms.

Consider these points when evaluating WooCommerce payment gateways

• Transaction fees: Most WooCommerce payment gateway plugins come with a transaction fee. The cost varies depending on your business location, the type of payment modes your consumers use, the payment gateway you use, and other factors. 
• Other charges: Transaction fees aren’t the only costs. Some payment gateway may charge for account maintenance, setup, and bank withdrawals.
• WooCommerce compatibility: If your payment gateway has a WordPress plugin, it makes things much easier. For example, PayU does. The setup and maintenance on your end are substantially lower because these plugins automatically maintain the connection between WooCommerce and your individual payment systems.
• Recurring payments: The gateway you pick must have an option for recurring payments, especially if your business revolves around membership plans or subscriptions.
• Availability in your target region: It goes without saying that the WooCommerce payment gateway plugin should be available in the same region as you and your target customer. Nearly every third-party gateway features a list of countries they support on their website. Make sure your target regions are on this list.

These pointers will help you narrow down your choices for the ideal payment gateway plugin. Now, let’s take a look at one of the finest WooCommerce payment gateways for WordPress.

Best payment gateway for WooCommerce in India

Begin taking payments with PayU in minutes from 150+ payment modes and provide your consumers with a world-class checkout experience for your online business. PayU has a straightforward, no-code process for WooCommerce payment gateway integration. Register on the PayU payment gateway for free.

Thousands of WooCommerce users and major Indian eCommerce companies such as Myntra, FabIndia, Tata Cliq, and Flipkart trust PayU. There is zero transaction fee and no platform fee for WooCommerce customers up to ₹1 lakh or 3 months, whichever comes first.

Enable and develop your business with the PayU WooCommerce plugin:

• Payment choices include debit cards, credit cards, UPI (such as PhonePe, Google Pay, etc.), net banking, wallets (such as MobiKwik, Paytm) subscription payment, and pay later option — all of which require only a few minutes to set up!
• Customers using WooCommerce receive special prices on all payment methods.
• With PayU’s international payment acceptance, you may accept payments from customers worldwide in over 100 different currencies.
• You can manage your transactions, complaints, refunds, and settlements from a single dashboard.
• Download reports spanning many data segments and monitor real-time transactions to make quick segments.

To learn more, click here. 

Conclusion

The best payment gateway plugin for WooCommerce is the one that offers minimal transaction prices, gives your consumers a better user experience, and is available in your selected region. Each option offers its own advantages and capabilities and is compatible with WooCommerce, but the main distinction between them and PayU is that it operates better in specific settings than others and offers the highest transaction success rates. PayU is a fantastic all-purpose choice for those who want customization options with their payment gateway.

Frequently Asked Questions (FAQs)

The post Best Payment Gateway Plugin for WooCommerce — PayU appeared first on PayU Blog.

Common types of businesses

The type of business organization you choose will determine how you run it. Here are some of the most common types of business entities:

Sole Proprietorship

In a sole proprietorship, the proprietor pays their income tax on the business’s profits. When it comes to setting up or dissolving a business, sole proprietorships are the easiest. This is why they are popular among sole proprietors, self-employed contractors, freelancers, and consultants. Creating a separate business isn’t often necessary for small businesses. Therefore, sole proprietorships are popular. 

In contrast to an LLC, a corporation, or a limited liability partnership, there is no separate legal entity in a sole proprietorship. Consequently, the sole proprietor is not exempt from any responsibilities or actions the company takes.

Any debt owed by the sole proprietorship is the responsibility of the owner. Likewise, a sole proprietorship’s profits belong to the business owner only.

Partnership

In a partnership, two or more people enter into a formal agreement to manage and operate a business and split the profits.

There are a variety of ways to form a partnership. Partners may or may not have unlimited liability, depending on the terms of the agreement. Another type of partnership is the “silent partner”, in which one party does not participate in the operations.

Each partner is responsible for their own legal and financial responsibilities in a general partnership. The partnership’s debts are the responsibility of each member. Also, the profits are equally split unless agreed otherwise. In a partnership agreement, the details of profit-sharing are likely to be written out in a partnership deed.

Limited Liability Partnerships (LLP)

It is usual for accountants, lawyers, and architects to form limited liability partnerships (LLPs). Equity partners and salaried partners are two further classifications used by law and accounting firms. Salaried partners do not hold any equity in the company. In most cases, they receive additional compensation based on their performance.

To form an LLP, you need to have at least one general partner personally liable for the partnership’s liabilities. The responsibility of at least one partner is limited only to the amount invested. Unlike the active partners, the silent ones are not involved in the company’s day-to-day management.

Limited Liability Companies (LLC)

LLCs shield their owners from personal accountability for the company’s debts and liabilities. Hybrid businesses and limited liability corporations (LLCs) combine a corporation and a partnership or a single proprietorship.

Company

Groups of people form a corporation to legally run a commercial or industrial venture. Depending on the local corporate legislation, a business can be structured in various ways for tax and financial liability considerations. The distinction between private and public companies can also be made. The two companies are vastly different in ownership, rules, and financial reporting.

A company is distinct from its owners, managers, and employees. Most businesses are set up to profit, while some are for charitable purposes. Companies and corporate hierarchies differ from country to country, yet there are many similarities as well.

Documents required to open different types of business in India

A sole proprietorship does not require registration in India. Therefore, you will not need any documents for that. However, you might need a PAN number and the TIN for tax purposes. 

For a partnership business, you need an address proof of the business, identity proof, partnership registration certificate, GST certificate, etc. 

To start a company, you need the following documents:

• No objection certificate (NoC)
• Company PAN card
• Founders agreement
• TIN
• Non-disclosure agreement
• GSTIN
• Shareholder agreement
• Certificate of incorporation

Registering an online business in India

All unicorn businesses in India had to start somewhere. You must first visit the official website of the Ministry of Corporate Affairs to begin the process. Fill out the DIR3 and DSCl. Applying for a DIN online is as simple as filling out these two forms.

If you’re filling out these forms, keep in mind that you’ll need to attach specific papers. These documents are proof of address, proof of employment, a passport, and educational credentials. You will also need to provide passport-sized photos.

The next step is to apply for a Digital Signature Certificate (DSC). You cannot apply for registration online unless you have a Digital Signature Certificate (DSC). Documentation is required for the DSC, as it is for the DIN. It is necessary to have a valid photo ID and all documents mentioned above.

Conclusion

There are many types of top businesses to start in India. Achieving online business growth in India requires you to register your business first. But before anything, you need a strong plan to start a business. During this process, you will decide on a business model and adopt one of the suitable business structure types mentioned above.

FAQs

The post Types of Businesses You Need to Know About appeared first on PayU Blog.

What is Meesho?

Meesho is one of the biggest Indian online marketplaces that pioneered social media marketing. It allows you to sell a range of products through social media platforms, including WhatsApp, Facebook, and Instagram. Millions of customers love shopping online on Meesho. By becoming a seller with them, you, too, can start selling your products to these customers. You can sell products of various categories, such as apparel, home decor, kitchen items, and accessories.

Step-by-step process to selling on Meesho

Here’s how to start selling on Meesho and grow your business from home:

Register as a Meesho seller at zero cost

The registration process is simple and easy. This will give you access to the Meesho Supplier Panel, which gives you an organized view of your business on the platform. You need these things to create an account on the platform –

• A GSTIN
• An active bank account
• Mobile number
• Email ID

It is great that you don’t have to pay any registration fee or commissions to set up your online business on their platform.

Upload your catalogs to showcase your products and start getting orders

Go to the Meesho Supplier Panel to upload your product catalogs. You can upload one or many catalogs in bulk from an Excel sheet. You can create catalogs for products with multiple designs. Create a catalog containing at least three to four products is advisable to improve your chances of receiving orders. It takes 72 hours after cataloging for your products to go live.

Get help with shipping and fulfilling order delivery

One of the best things about selling on Meesho is the end-to-end supplier support. You will get notified via email and on the Meesho seller app whenever you receive an order. Also get updates and track all your orders from the supplier panel. Meesho’s logistics partners will pick up and deliver your products at the best shipping rates.

Receive payments in your registered bank account

They will take care of collecting payments and making settlements. It follows a seven-day payment cycle. This means you will receive your money seven days after fulfilling the order. This, too, can be tracked on the supplier panel.

Why do suppliers prefer selling on Meesho?

There are numerous eCommerce platforms and online marketplaces where you can sell your products. But Meesho is a crowd favorite among small-scale sellers and suppliers.
Here are some prominent benefits of selling on their platform:

• A platform for one and all: It is ideal for small- to medium-sized businesses and branded or non-branded sellers looking to boost their earnings.
• Zero commission and other charges: You also don’t have to pay a commission or charges like registration and collection fees and order cancellation penalties.
• Massive consumer reach: Get access to millions of online shoppers on the Meesho shopping app and social media platforms. It delivers to more than 28000 pin codes all over India.
• Effortless order processing and handling: The Meesho seller app has a fairly simple user interface. It allows you to run your business smoothly without spending too much time and effort. Just upload all product details, start getting orders, pack them, and they will take care of the rest. They will also take care of returns and refunds on your behalf.
• Hassle-free and secure payments: they accepts online and offline payments, including cash on delivery. Its payment partner has robust and secure payment solutions.
• Strong seller or supplier support: You can get advice regarding what to sell and how to price your products correctly.
• Brand image and identity: You will have full control over things like branding, pricing, profit margins, and sales volumes. Selling on this platform will give your business more visibility and improve sales.

Pro tips for increasing sales on Meesho

• List the most popular products to get more orders.
• Set prices keeping desired profit margins in mind.
• Choose the Next Day Dispatch option to get higher visibility for your products.
• Upload as many catalogs as possible to improve your chances of receiving orders.

Sell more and earn more on Meesho

Everyone aspires to run their own company and be their boss. However, taking the initial step on the road to entrepreneurship is not easy. A large volume of money is required to start a business. However, with Meesho, you can begin your business with little to no investment.

E-commerce has transformed the way we shop. And Meesho has leveraged these changing times to provide a platform for small enterprises and individual sellers.

Also read: Step-By-Step Guide to Selling On Flipkart

Frequently Asked Questions (FAQs)

The post Start Your Online Business Journey as A Meesho Seller | A Step-By-Step Guide appeared first on PayU Blog.

What is web designing?

It is the multi-faceted process of developing and maintaining websites. Web designing combines many skills and disciplines in creating and maintaining websites. It involves designing different aspects of a website, such as web pages, user interface, graphics, and content, using web programming languages. The language and design you use will decide how your website communicates with its own elements and appears to users at the front and back ends. The better the web design, the more traffic you can get on your website.

Programming languages for web development

Web development involves language types like markup, programming, and scripting. Markup languages are very different from programming or scripting languages. Markup languages, e.g., HyperText Markup Language (HTML), tell browsers how to structure and display a website. Then, describe how to display something written in HTML using Languages like Cascading Style Sheets.

Programming languages are codes that provide computers with commands or logic to perform specific tasks. Scripting languages are a sub-category that basically provide instructions for tasks written in a web programming language. Deciding on the right web design languages to create your business’s website can get confusing. It is important to understand the specific use cases of different languages. But if you are just starting out, here are the most popular web development languages you should know about:

HTML

HTML works on all browsers. It defines what you will see on your screen when you go to a hyperlink. While HTML is important for defining a web page (layout and its components), you cannot use it to create dynamic functions the way programming languages can.

CSS

It is a style sheet language developers use to describe the style of web pages written in HTML. Use CSS along with HTML to define web page characteristics like colors, images, layouts, font styles, and more.

JavaScript

It works with both HTML and CSS to design interactive and dynamic web elements. Its versatility has made it a go-to language for enterprise app development. You can use it to create both website front and back ends.

Python

It is an object-oriented language with a resourceful standard library. It is easy to understand and very user-friendly. Furthermore, developers mainly use Python in backend web development, automation, and web app development. It simplifies building complex websites and is compatible with other programming languages.

Java

It is one of the most popular web programming languages with an extensive open-source library. Use Java to develop content, games, apps, and software. Built on the ‘write once, run anywhere’ principle, Java codes are portable and can run on multiple software platforms.

C++

It is easy to learn, as it only contains 60 keywords. As one of the oldest programming languages ​​globally, C ++ undoubtedly has a large support community and owns a large number of libraries to provide additional functions. Famous websites like Google and Amazon use C++.

C#

It is another language from the C family. C# is an object-oriented, multi-paradigm programming language. Use C# typically for enterprise app development.

PHP

PHP stands for Hypertext Preprocessor – an open-source scripting language primarily used for backend web development. Use PHP to create heavy-output items like animation, data, PDF, etc. Web development using PHP functions is similar to C language, supporting many free and open-source extensions such as .NET.

Ruby

It is easy to learn and runs on the Ruby on Rails framework. It is much like Python and PHP. With useful features such as automatic garbage collection and huge libraries. Ruby renders an enhanced web development experience.

Summing up

If you are very keen on dabbling with web designing, you can start by learning some basic web development languages. This can help you gain a fair idea of how web programming works. For extensive web designing, you may need the help of a professional web developer to create attractive, user-friendly web experiences for your customers.

FAQs

The post Best Programming Languages for Web Designing appeared first on PayU Blog.

What is a zero balance current account?

Zero balance current accounts allow you to transact without maintaining a Monthly Average Balance (MAB), which can be quarterly in some cases. The MAB is the average closing balance you need to maintain in your account at the end of each day in a month. Not doing so may attract non-maintenance charges.

This type is ideal for startups and small businesses’ day-to-day transactions. It can increase your business’s liquidity and enable easy access to working capital through overdraft facilities or bank loans.

Why zero balance requirement is great for small businesses

Times can get really tough for small businesses, with irregular cash flow and limited funds at your disposal. Adding to that, the stress of maintaining a minimum balance or paying a non-maintenance fee, no matter how small, does not help. You don’t even earn interest on the minimum balance in your current account. That’s why a zero balance account can meet your business’s banking needs without added stress. It is a financial inclusion initiative for small businesses, as the government aims that no business should go unbanked.

Current account eligibility and documentation requirements

There aren’t any specific eligibility criteria for opening a zero balance current account. However, different banks may have different criteria. Typically, you may have to furnish basic documents such as:

• PAN card
• Proof of identity, communication, and residence
• Proof of business – certificate of incorporation, partnership agreement, or memorandum of association
• Color photographs

Benefits of zero balance current accounts

There is no way a business can function without a bank account now, and current accounts are perfect for businesses of any size or type. Here are the most prominent benefits:

• Easy access to liquid funds: Your business can access its funds whenever needed without any withdrawal limits.
• Unlimited transactions: You can send and receive as many payments as you need.
• No minimum balance: You don’t have to worry about any of your funds getting stuck in a minimum balance requirement.
• Better money management: The bank maintains a record of all your transactions, and you can easily get this information to keep track of your business’s finances.
• Leverage online banking: Having a current account allows you to also take advantage of online banking services to run your business smoothly.
• Get value added service: Your current account records can be seen as a reflection of your business’s trustworthiness. This can make you eligible for overdraft and loan facilities to help you out in times of need.

Combine your current account with powerful payment solutions

While you benefit from the flexibility of a zero balance current account and online banking, you can also provide your customers with the option to make purchases using more than 150+ digital payment modes. It takes only a few minutes to integrate PayU’s payment solutions on your website or app and start receiving payments into your current account. Your customers will be happier with the smoother checkout experience and you can track all your payments and settlements from the simple PayU dashboard.

Click here to know more about PayU’s payment solutions.

FAQs

What is a Zero Balance Current Account?

A zero balance current account is a bank account suitable for individuals and businesses conducting numerous daily transactions. The USP of a zero balance current account is that it doesn’t have a Monthly Average Balance requirement. It is suitable for small businesses that are typically strapped for funds.

What are the different types of current accounts?

There are many types of current accounts, like standard, package, or foreign currency. Zero balance current account is another type which is very beneficial for small businesses as it does not have a minimum balance requirement among other benefits.

What are the benefits of a zero-balance current account?

A zero balance account –

• has no withdrawal or transaction limits
• doesn’t have a minimum balance requirement
• allows account holders to access overdraft and credit facilities
• provides other benefits such as chequebooks, online banking, and more

Can I open a current account online?

While it may depend from bank to bank, it is possible to open a current account online. However, the process and documentation requirements for opening a current account may differ.

What is the purpose of a zero balance account?

A zero balance account (ZBA) is a type of corporate checking account that allows you to go down to zero balance. It is usually linked to a primary account that moves money in and out of the ZBA when transactions occur.

The post Zero Balance Current Account: Everything You Need to Know appeared first on PayU Blog.

How to sell on Flipkart

1. Register yourself as a Flipkart seller

To sell your products on Flipkart, start by registering as a Flipkart seller. Following are the business-related information and documents you need to start selling online on Flipkart: 

Selling as an individual, sole proprietorship, private limited company, LLP, or partnership firm

• PAN card
• Bank account in the name of the individual or business
• GST registration
• Proof of identification
• Address proof documents 
• A valid email ID
• A valid contact number 
• Bank statement or cancelled cheque of the registered account 

Selling as a trust or foundation

To sell products on Flipkart as a trust or foundation, sellers need to provide documents to establish the statutory recognition of the trust or foundation. 

2. List your products on Flipkart

Listing products on Flipkart is very straightforward. The Flipkart portal works on a self-service model. Sellers must have a minimum of 1 product for listing & selling on Flipkart.

Flipkart seller dashboard to manage all your products

Once you have registered yourself as a Flipkart seller & listed your products, you can begin selling on the Flipkart platform. Manage all activities from your Flipkart seller account. Flipkart also promotes and advertises the products and provides analytical support to let you know about the products that are performing well. You can also change the details on the dashboard, like description, current pricing, and other features of the products you want to sell on Flipkart.

3. Logistics & shipping 

Once an order is received, you have to pack the product and ready it for shipment. The logistics partner will pick it up for delivery. Flipkart has added various courier partners to their delivery team who will take up the products and deliver them anywhere in India. They also support the packaging of materials & training. Flipkart has hundreds of pick-up stores & tens of thousands of delivery personnel. 

4. Order fulfillment

The last leg of selling products on Flipkart includes the following steps:

• Get new orders on the portal/panel placed by a customer & accept them. 

• Add shipment label bill while packing the order & keep the product ready for shipment. 

• Dispatch the order by selecting ‘Ready to ship’ on the dashboard. 

• There will be a downloadable manifest to ensure that you gave the shipment during pick-up by the Flipkart coordination partner as per the manifest. 

• Track the shipment till the order is delivered to your customer. 

5. Payment for the products sold

Payment for the sold product is collected by Flipkart and sent to the vendor within 7-15 business days from the date of sale through bank transfer or UPI transfer with Rs.1 lakh UPI limit per day. 

Eligibility to become a Flipkart seller

Anyone selling genuine and new products can sell on Flipkart, be it an individual, Private Limited Company or Sole Proprietorship Firm. You need to submit the required documents mentioned above for registration to become eligible as a seller on Flipkart. 

Charges to sell a product on Flipkart 

Pay a commission on the product value on a percentage basis on each sale. Flipkart also charges a fixed fee based on slabs of order values. Flipkart also collects fees on payment modes like prepaid or COD. 

The seller is responsible for paying the shipping fees. Hence, to sell on Flipkart, pricing needs to include shipping charges. The seller can also charge it separately in addition to the selling price. 

If products are damaged during transit or misplaced because of the fraudulent claim of the customers or the courier’s fault, Flipkart has a seller protection program to help. 

Products you can sell on Flipkart

After giving the needed information & documents, you can start selling any product on Flipkart. The only condition is that the product should be new and genuine.

Flipkart seller benefits

Since Flipkart is a leader in the e-commerce market in India, it provides many benefits and helps your business reach millions of customers. Flipkart provides the art of “smart selling”. Various other benefits are: 

• There is no charge for the listing of your catalogue online. 
• Flipkart also handles the shipping of the products. You only have to pack your product and make it ready for dispatch. The Flipkart Logistic partner will deliver it to the customers. 
• Allows you to set the price of your product. 
• Payments are settled within 7-15 business days from the date of sale of your product. 
• Flipkart also protects sellers from fraud. It has set up an SPF (Seller Protection Fund). 
• Flipkart provides a simple policy for returning the product in which consumers can return it if they don’t like it (T&C). If the product is returned for any reason, Flipkart doesn’t take any shipping charge from the seller if the product is not accepted/ returned by the consumer, and Flipkart also bears the product cost if the product is damaged in transit. 
• Another advantage for sellers is Flipkart funding associates that offer funds at fair rates. So you can stock more products in your inventory. 
• Flipkart also offers training on how to sell on Flipkart, and one can learn that online. 

Also read: How To Start Selling On Meesho As A Meesho Seller?

Conclusion

The e-commerce market in India is growing day by day, and Flipkart is providing an opportunity to become a seller. Flipkart sellers have high credibility and maximum online reach. It is a significant partner that can take your products to customers everywhere in India. 

The post Become a Flipkart Seller: A Step-By-Step Guide to Sell Online appeared first on PayU Blog.

What is a Payment Gateway API?

Application programming interface (API) is the technology that merges your online processes. A payment gateway API helps connect the checkout system to a payment acquiring network. The distance between placing an order and making the payment must be simple, fast, and transparent for a user. 

An integrated payment gateway API ensures the complete security of the user’s financial information. It should offer all payment options and a custom checkout experience. It needs to be fast to execute orders in real-time. It should have the best success rate. There are varied payment gateway options for a merchant to select from in India. The payment gateway integration for websites or apps needs to be effortless for users.

Now, let’s have a look at payment gateway integration for different platforms:

How to integrate a payment gateway API in Shopify

Payment gateway integration on Shopify is adept and smooth – consumers have the option of integrating several gateways on the platform. You can start accepting payments via cards, UPI, wallets, internet banking, BNPL, and EMI with a spectacular gateway.

Click on Payment Providers, add a provider, and fill out an online form to integrate. That’s it. You’re good to go.

How to integrate a payment gateway in WordPress

There are some necessities before you can start accepting online payments on WordPress. You will need an SSL, a secure website for your business on WordPress, and a decent web host. WordPress accepts a couple of Payment Gateways in India, freeing you of the worry of processing payments on your own.

How to integrate a payment gateway into a Wix Website

With Wix, you as the consumer are free to accept payments the way you like. Wix has a robust Point of Sale technology that manages inventory and business payments. Wix offers several payment provider integrations, and you can follow the instructions online to set up your payment gateway integration. With digital privacy and safety being the top priority, you will be ready to accept payments in an instant.

What are the checks to consider while selecting a payment gateway?

Mentioned below are the crucial checks a business owner must evaluate before selecting a payment gateway –

1. While selecting the most appropriate payment solution, merchants should look at those payment gateways that provide facilities for collecting recurring payments. 
2. A merchant should consider selecting a payment gateway that allows for international payments and accepts different currencies. A presence on the Internet opens up the whole world as a market to you.
3. Data security is a prime factor while completing a transaction. In this modern world, cyber fraud has become ever so prevalent. A user is wary of sharing their financial details online. Only a trusted and reliable brand with a clean track record can give a user the confidence to share their financial details at the time of checkout. 

Hence, a merchant must select a payment gateway renowned for cutting-edge technology and has an extensive team devoted to security.

Summing up

So in parting, we can conclude that the right payment gateway is an essential partner to the success of a merchant’s online operations. An efficacious payment gateway API frees you from the hassles of developing the technology and delayed payments, enabling you to concentrate on other crucial aspects of your business.

Visit PayU India’s website for detailed information on payment gateways.

The post Ways to Integrate Payment Gateway API into Your Website appeared first on PayU Blog.