How to Register a Business on ONDC: Open Network Digital Commerce Guide

India's e-commerce market is dominated by two or three platforms that charge sellers 18% to 40% commission, control customer data, and dictate pricing algorithms. Open Network for Digital Commerce - ONDC - is the government's answer to this concentration. Initiated by DPIIT and built on the open Beckn Protocol, ONDC works like UPI did for payments: it creates an interoperable layer where any buyer app can connect with any seller app, any logistics provider, and any payment gateway. The result is lower commissions (3% to 10%), full data ownership for sellers, and access to 800+ cities through a single integration. With 14 million monthly transactions in October 2024 and 370,000+ vendors already onboarded, ONDC is no longer experimental - it is a functioning marketplace. This guide covers everything you need to register your business on ONDC in 2026, from choosing a seller app to uploading your first product catalogue.

What Is ONDC and Why It Matters for Indian Businesses

Open Network for Digital Commerce (ONDC) is a government-backed initiative by the Department for Promotion of Industry and Internal Trade (DPIIT), incorporated on 31 December 2021. It is not an app, a website, or a marketplace. ONDC is a set of open protocols and specifications - built on the Beckn Protocol - that enable decentralised digital commerce. Any technology company can build a buyer app or seller app on ONDC, and all participants on the network can transact with each other without being locked into a single platform.

The simplest analogy is UPI. Before UPI, if you had a Paytm wallet, you could only send money to other Paytm users. UPI broke that wall - now a Google Pay user can send money to a PhonePe user seamlessly. ONDC does the same for e-commerce. A customer browsing products on the Paytm buyer app can discover and purchase from a seller listed through the Mystore seller app, with delivery handled by Delhivery - all without any of these companies needing bilateral integration agreements.

The Problem ONDC Solves

India's e-commerce landscape has three structural issues that hurt sellers:

• Platform concentration: Amazon and Flipkart together control over 60% of India's e-commerce GMV. This concentration gives platforms disproportionate negotiating power over sellers, including commission rates, visibility algorithms, and return policies.
• High commission extraction: Platform commissions range from 18% to 40% per transaction (depending on category), leaving thin margins for sellers, especially MSMEs and kirana stores.
• Data asymmetry: Platforms own all customer data. Sellers cannot build direct relationships, run their own marketing campaigns to existing customers, or understand purchasing patterns beyond what the platform dashboard shows.

ONDC addresses all three issues by creating an open network where services (discovery, ordering, payment, logistics, fulfilment) are unbundled and available from multiple competing providers. The seller is no longer a tenant on someone else's platform - they are an independent participant in an open network.

Key Statistics: ONDC Growth as of 2024

How the ONDC Network Works: Buyer Apps, Seller Apps, and Logistics

Understanding ONDC's architecture is essential before you register, because unlike Amazon or Flipkart where you interact with a single platform, ONDC involves multiple independent participants connected through the Beckn Protocol. Each participant handles a specific function - and you choose which ones to work with.

The Four Layers of the ONDC Network

• Buyer apps (demand side): These are customer-facing applications where shoppers browse and purchase products. Major buyer apps include Paytm, Magicpin, Mystore, PhonePe, and CSC e-Grameen. When you list products through any seller app, your inventory automatically becomes discoverable across all integrated buyer apps.
• Seller apps (supply side): These are the platforms through which sellers manage catalogues, receive orders, and process fulfilment. Examples include Mystore, SellerApp, GoFrugal, Snapdeal, Meesho, Zoho Vikra, GrowthFalcons, DIGIIT, UdyamWell, and Bitsila. You register through one seller app to access the entire ONDC network.
• Logistics network partners: Delivery providers integrated into the ONDC network. These include Delhivery, Ekart, Dunzo, Shadowfax, Porter, XpressBees (2,800+ cities, 20,000+ pin codes), LoadShare, and Mahindra Logistics. Sellers can choose different logistics providers for different orders based on cost and speed.
• Payment network partners: Payment processing and settlement are handled by Paytm, PhonePe, NPCI (Bharat Bill Payment System), and Razorpay. Settlements flow directly to the seller's bank account through the payment partner.

Transaction Flow on ONDC

Here is how a typical ONDC transaction works from start to finish:

1. Discovery: A customer on any buyer app (e.g., Paytm) searches for a product. The buyer app sends the search query across the entire ONDC network via the Beckn Protocol.
2. Catalogue matching: All seller apps with matching products respond. The customer sees results from sellers across multiple seller apps in a unified interface.
3. Selection and ordering: The customer selects a product and places an order. The order is routed to the specific seller through their seller app.
4. Logistics assignment: The seller (or the system, based on configuration) selects a logistics provider from the available network partners.
5. Fulfilment: The logistics provider picks up the order and delivers it to the customer.
6. Settlement: Payment is processed through the payment partner and settled to the seller's bank account, minus the agreed commission.

ONDC vs Amazon and Flipkart: A Detailed Comparison

The question most sellers ask is: why should I sell on ONDC when Amazon and Flipkart already have the customer traffic? The answer lies in the structural differences. ONDC is not trying to compete with these platforms on features - it is fundamentally changing the economic relationship between sellers and the marketplace.

Prerequisites Before Registering on ONDC

Before you begin the ONDC seller registration process, ensure your business has the following registrations and documents in place. Missing any of these will delay or block your onboarding.

Mandatory Registrations for All Sellers

• Business entity registration: You need a registered business - sole proprietorship, partnership firm, LLP, or Private Limited Company. Any legal entity type is accepted on ONDC, but a Private Limited Company is recommended if you plan to scale or raise funding.
• GST registration: A valid GSTIN is mandatory for all e-commerce sellers under Section 24 of the CGST Act. This applies regardless of turnover if you are selling through an e-commerce operator. Apply for GST before starting the ONDC onboarding process.
• PAN card: PAN of the business entity (for companies and LLPs) or the individual proprietor. This is required for GST registration and seller app KYC.
• Bank account: A current account in the name of the business entity. Seller app settlements are processed to this account. Sole proprietors can use a savings account with the proprietor's name matching the business PAN.
• Aadhaar of authorised signatory: Required for KYC verification during seller app onboarding.

Category-Specific Registrations

• Food, beverages, and restaurants: FSSAI registration or license under the Food Safety and Standards Act, 2006. Basic registration for turnover up to ₹12 lakh, State License for ₹12 lakh to ₹20 crore, Central License above ₹20 crore.
• Pharmaceuticals: Drug License under the Drugs and Cosmetics Act, 1940 (Form 20 for retail, Form 21 for wholesale) from the State Drug Controller.
• Cosmetics and beauty: Cosmetics manufacturing or import license under the Drugs and Cosmetics Rules.
• Agriculture and farm products: APMC mandi license or farmer producer organisation (FPO) registration, depending on state regulations.

Step-by-Step: How to Register Your Business on ONDC

Registering on ONDC is a 5-step process that takes 7 to 15 business days if all documents are ready. Here is the exact sequence:

Step 1: Choose a Seller App

You do not register directly with ONDC. Instead, you register through an ONDC-integrated seller app (also called a Seller Network Participant or SNP). This is the platform through which you will manage your catalogue, receive orders, and track fulfilment.

Popular seller apps and their strengths:

• Mystore: All-in-one solution popular for retail, grocery, and fashion. Good for first-time ONDC sellers.
• SellerApp: Strong analytics and catalogue management. Suitable for sellers already on Amazon who want to add ONDC.
• Zoho Vikra: Launched September 2024. Ideal for businesses already using Zoho Books, Zoho Inventory, or other Zoho products.
• GoFrugal: Best for businesses needing robust inventory management and POS integration.
• GrowthFalcons: Focused on helping MSMEs and small retailers with hands-on support during onboarding.
• Snapdeal / Meesho: Established platforms now offering ONDC seller integration alongside their existing marketplace.

Step 2: Complete DigiReady Certification

Before most seller apps will begin your onboarding, you need the DigiReady certification - a free online self-assessment developed by ONDC and the Quality Council of India. The assessment evaluates:

• Availability of business documents (registration, GST, PAN, bank details)
• Digital literacy level (ability to use smartphones, apps, email)
• Existing digital processes (do you already manage orders digitally?)
• Catalogue readiness (do you have product images, descriptions, and pricing in digital format?)

The assessment takes approximately 30 minutes and results in an e-certificate if you qualify. This certificate signals to seller apps that you are ready for digital commerce, and many apps use it to fast-track onboarding.

Step 3: Submit Documents and Complete KYC

Once you have chosen a seller app and completed DigiReady, the seller app will walk you through document submission:

1. Upload your business registration certificate (Certificate of Incorporation, Partnership Deed, or Shop & Establishment certificate for proprietorships)
2. Submit GST certificate (Form REG-06)
3. Submit PAN card of the entity or proprietor
4. Complete Aadhaar-based KYC of the authorised signatory
5. Provide bank account details (cancelled cheque or bank statement for verification)
6. Upload category-specific licenses (FSSAI for food, Drug License for pharma, etc.)

Document verification by the seller app typically takes 3 to 7 business days.

Step 4: Create and Upload Your Product Catalogue

Your product catalogue is what customers see on buyer apps. Quality of your catalogue directly impacts discoverability and sales:

• Product images: High-resolution images (minimum 500x500 pixels). White background preferred for product shots. Multiple angles recommended.
• Product descriptions: Clear, accurate descriptions with key specifications. Include material, dimensions, weight, and any regulatory marks (ISI, FSSAI number, etc.).
• Pricing: Set MRP and selling price. ONDC displays both, and buyers see the discount percentage.
• Category mapping: Map your products to ONDC standard categories. Accurate categorisation ensures your products appear in relevant searches.
• Stock and availability: Set stock quantities and update availability. Out-of-stock items reduce your seller rating.

Most seller apps provide a bulk upload option (CSV or Excel) for sellers with large catalogues, and a manual entry interface for smaller inventories.

Step 5: Go Live and Start Receiving Orders

Once your documents are verified and catalogue is uploaded, the seller app activates your listing on the ONDC network. Your products become discoverable on all integrated buyer apps (Paytm, Magicpin, Mystore, PhonePe, CSC e-Grameen, and others). Configure your logistics preferences (which delivery partners to use, serviceable pin codes, delivery timelines), set up order notifications, and you are live.

Business Entity Options for ONDC Sellers

Your choice of business entity affects taxation, compliance costs, funding eligibility, and liability protection. Here is how each option works in the context of selling on ONDC:

If you are a kirana store or small retailer testing ONDC, a sole proprietorship with GST registration is sufficient. If you are building a brand, hiring employees, or planning to raise venture capital, register a Private Limited Company from the start to avoid the cost and complexity of conversion later.

ONDC for Specific Business Types

ONDC supports diverse business categories, and the registration requirements vary by type. Here is what each category of seller needs to know:

Kirana Stores and Local Retailers

ONDC was built with kirana stores in mind. India has over 12 million kirana stores, and most are excluded from e-commerce because Amazon and Flipkart onboarding is complex and commissions erode thin margins. On ONDC, a kirana store can list products through a seller app, pay 3% to 10% commission (versus 25%+ on traditional platforms), and reach customers across multiple buyer apps. The ONDC Academy provides free training, and the “Feet on Street” programme sends field representatives to help shops with onboarding, catalogue creation, and order management.

Restaurants and Food Delivery

Restaurants can join ONDC to receive food delivery orders without the 25% to 35% commission charged by Zomato and Swiggy. Requirements: FSSAI license, GST registration, and a digital menu with pricing. Seller apps like Mystore and DIGIIT support restaurant onboarding with menu management features. Customer orders come through buyer apps like Magicpin, with delivery handled by logistics partners like Dunzo and Shadowfax.

Fashion and Apparel Brands

Fashion is the largest category on ONDC by order volume, with over 11 million orders in October 2024. Apparel sellers need GST registration, brand authorisation (if selling branded goods), and high-quality product photography. ONDC's open network means your products are visible to shoppers on all buyer apps - unlike a single-platform listing on Myntra or Ajio. Size charts, fabric details, and return policies should be clearly documented in your catalogue.

Agricultural Producers and FPOs

Farmer Producer Organisations (FPOs) and individual farmers can sell agricultural commodities directly on ONDC. The network is integrated with the ODOP (One District One Product) scheme, enabling regional speciality products to reach national buyers. Requirements include business registration (FPO or cooperative), GST registration (if applicable), and FSSAI registration for processed food products. The CSC e-Grameen network provides rural ONDC access points.

B2B and Wholesale Sellers

Since December 2022, ONDC supports B2B transactions. Wholesale sellers can list bulk inventory, offer tiered pricing, and connect with business buyers across the network. B2B sellers need GST registration, a business entity registration, and trade-specific licenses if applicable. Invoice generation, GST-compliant billing, and credit term management are handled through the seller app.

Costs of Selling on ONDC: Complete Breakdown

One of ONDC's biggest advantages is its low cost structure. Here is a complete breakdown of what you will spend:

One-Time Setup Costs

• ONDC registration fee: ₹0 (ONDC charges nothing)
• Seller app setup fee: ₹0 to ₹2,000 (varies by platform; many offer free onboarding)
• DigiReady certification: ₹0 (free)
• GST registration: ₹0 (government fee) or ₹1,500 to ₹3,000 if using a professional service
• Product photography: ₹2,000 to ₹10,000 (for professional product images; optional if you can photograph products yourself)

Recurring Costs

• ONDC commission: 3% to 10% per transaction (market-determined, not fixed by ONDC)
• Seller app subscription: ₹0 to ₹2,000 per month (depends on plan and platform)
• Logistics costs: Per-order shipping charges based on the logistics provider selected, weight, and distance. Typically ₹30 to ₹150 for intra-city and ₹50 to ₹250 for intercity delivery.
• Payment gateway charges: 1% to 2% per transaction (standard UPI/payment processing fees)
• GST compliance: ₹500 to ₹3,000 per month for GST return filing (if using a professional)

Government Schemes and Support for ONDC Sellers

ONDC is not just a standalone initiative - it is integrated with multiple government programmes designed to support small businesses. If you are registering on ONDC, take advantage of these parallel schemes:

Startup India Recognition

If your ONDC-based business qualifies as a startup under DPIIT criteria (incorporated as Private Limited Company, LLP, or Partnership Firm; less than 10 years old; annual turnover under ₹100 crore), register under Startup India for:

• 3-year income tax exemption under Section 80-IAC (any 3 consecutive years out of the first 10)
• Self-certification for 9 labour laws and 3 environmental laws
• Fund of Funds access - ₹10,000 crore corpus for startup funding
• Fast-tracked patent examination with 80% rebate on patent filing fees

MSME Registration (Udyam)

MSME/Udyam registration gives ONDC sellers access to:

• SIDBI credit schemes (₹10 crore MoU between SIDBI and ONDC)
• Priority lending from banks under the MSME priority sector mandate
• Subsidised participation in trade fairs and exhibitions
• Government procurement preferences under the Public Procurement Policy

ODOP and CSC Network

The One District One Product (ODOP) scheme promotes regional speciality products on ONDC. If your business produces a product identified under ODOP (such as Banarasi silk, Darjeeling tea, or Jodhpuri mojari), you get enhanced visibility and promotional support. The Common Service Centre (CSC) network provides physical access points in 3+ lakh villages, extending ONDC to rural India where Amazon and Flipkart have minimal penetration.

ONDC Academy and Training Support

ONDC provides free educational resources through the ONDC Academy - video courses, guides, and webinars covering digital commerce basics, catalogue creation, order management, and customer service. Additionally, technology partners including Google, Meta/WhatsApp (500K MSME digital skills programme), and Microsoft offer seller toolkits and training specifically for ONDC participants.

Compliance Obligations After Registering on ONDC

Once you are live on ONDC, ongoing compliance is mandatory. Non-compliance can result in seller app suspension, GST penalties, or legal action. Here is your compliance checklist:

GST Compliance

• GSTR-1 (monthly/quarterly): Details of outward supplies. Filed monthly if turnover exceeds ₹5 crore, quarterly under QRMP scheme if below ₹5 crore.
• GSTR-3B (monthly/quarterly): Summary return with tax payment. Same filing frequency as GSTR-1.
• GSTR-9 (annual): Annual return filed by 31 December of the following financial year.
• E-invoicing: Mandatory if aggregate turnover exceeds ₹5 crore. E-commerce transactions on ONDC may require e-invoicing depending on your turnover threshold.
• TCS compliance: The seller app (as e-commerce operator) deducts TCS at 1% on net taxable supplies. This is reflected in your GSTR-2A and can be claimed as credit.

Income Tax Compliance

• Advance tax: If your tax liability exceeds ₹10,000, pay advance tax in quarterly instalments.
• Income tax return: Annual filing based on your entity type - ITR-3 for proprietorships, ITR-5 for LLPs, ITR-6 for companies.
• Tax audit: Mandatory if turnover exceeds ₹1 crore (₹10 crore with conditions) under Section 44AB.

Company/LLP-Specific Compliance

• Annual ROC filings: Private Limited Companies must file AOC-4 (financial statements) and MGT-7A (annual return) with the Registrar of Companies. LLPs must file Form 8 (financial statements) and Form 11 (annual return). IncorpX provides complete compliance management for these filings.
• Board meetings: Companies must hold minimum 4 board meetings per year. LLPs are not required to hold board meetings but must maintain records of partner decisions.
• Statutory audit: All companies and LLPs with turnover exceeding ₹40 lakh or contribution exceeding ₹25 lakh require statutory audit. Engage a Virtual CFO to manage audit preparation and financial planning.

Technology Partners and the ONDC Ecosystem

ONDC has secured partnerships with major global and Indian technology companies that provide tools, integrations, and support to sellers on the network:

• Google: Shopping integration, Google Business Profile linking, and ONDC product visibility in Google search results. Also partnered for Kochi Metro ticket sales via ONDC.
• Meta/WhatsApp: 500,000 MSME digital skills programme. WhatsApp Business integration for order notifications and customer communication on ONDC.
• Microsoft: Seller toolkit for social commerce, business analytics dashboards, and Microsoft 365 integration for catalogue management.
• Zoho: Technical support through Zoho Vikra seller app, plus integration with Zoho Books (accounting), Zoho Inventory, and Zoho CRM for end-to-end business management.
• Oracle: Reputation index system for ONDC sellers - building trust scores based on delivery performance, customer ratings, and order fulfilment rates.
• Razorpay: Payment reconciliation services ensuring accurate settlement tracking across all ONDC transactions.
• Bhashini (Saarthi app): Multilingual buyer app supporting purchases in 5+ Indian languages, expanding to all 22 scheduled languages. This opens ONDC to non-English-speaking customers.

These partnerships mean sellers on ONDC get access to enterprise-grade tools often reserved for large marketplaces - analytics, multi-language support, payment reconciliation, and reputation management - without enterprise-grade costs.

Common Challenges and How to Overcome Them

ONDC is a growing network with significant advantages, but it is not without challenges. Being aware of these issues helps you prepare and set realistic expectations:

Lower Traffic Compared to Amazon/Flipkart

ONDC buyer apps currently have lower traffic than Amazon and Flipkart. While 14 million monthly transactions is impressive growth, it is a fraction of the hundreds of millions of orders processed by established marketplaces. Strategy: Use ONDC as an additional channel, not your only one. The cost advantage (50-80% lower commissions) means even lower volume can deliver comparable or better margins.

Technology Stabilisation

As an evolving network, ONDC occasionally faces technical issues - address/geolocation API errors, order routing delays, and seller app interface inconsistencies. Strategy: Choose a well-established seller app (Mystore, GoFrugal, Zoho Vikra) with strong technical support. Report issues through your seller app's support channel. The network is improving rapidly with each update.

Catalogue Quality Requirements

Many small sellers, especially kirana stores, struggle with creating digital catalogues - product photography, descriptions, and accurate categorisation. Strategy: Use the ONDC Academy's free catalogue creation guides. Some seller apps like GrowthFalcons provide catalogue creation assistance as part of onboarding. Start with your top 20 products and expand gradually.

Logistics Cost Variability

While ONDC offers logistics choice, actual shipping costs vary significantly between providers, routes, and order sizes. Last-mile delivery in tier-3 cities can be more expensive than expected. Strategy: Compare logistics provider rates for your typical order profile. For local deliveries, partners like Dunzo and Porter are cost-effective. For intercity, XpressBees and Delhivery offer competitive rates with wide coverage.

ONDC Roadmap: What Is Coming Next

ONDC continues expanding across categories, geographies, and features. Here is what sellers should anticipate:

• Cross-border trade: ONDC is developing protocols for international commerce, enabling Indian sellers to reach buyers in other countries through the same network infrastructure.
• Financial services integration: Through the Account Aggregator Network (AAN), ONDC sellers will be able to access credit, insurance, and investment products directly within the network ecosystem.
• Healthcare commerce: Medical products, health devices, and wellness products are being added as new ONDC categories.
• Government procurement integration: All government ministry platforms are planned to integrate with ONDC, opening a massive B2G (business-to-government) channel for registered sellers.
• Enhanced buyer app ecosystem: PhonePe is in advanced stages of full ONDC integration, which will significantly increase buyer traffic given PhonePe's 500+ million user base.
• Street food vendor programme: Pilot programmes in Lucknow and Delhi are onboarding 1,000+ street food vendors, expanding ONDC to micro-enterprises.
• E-NAM agricultural integration: National Agriculture Market (e-NAM) integration will enable farmers to sell agricultural commodities through ONDC alongside the existing mandi system.

For sellers, the message is clear: register now while competition is low. As buyer app traffic scales (especially with PhonePe integration), early sellers will have established catalogues, ratings, and fulfilment track records that give them a significant advantage over latecomers.

Step-by-Step Registration Checklist

Use this checklist to track your ONDC registration progress from start to finish:

1. Business registration: Register as a sole proprietorship, partnership, LLP, or Private Limited Company
2. GST registration: Apply for and obtain GSTIN
3. MSME registration: Register on the Udyam portal for government scheme benefits
4. Category-specific license: Obtain FSSAI (food), Drug License (pharma), or other required licences
5. Open a current bank account: In the name of the business entity
6. Complete DigiReady certification: Free online assessment at the ONDC DigiReady portal
7. Choose and register on a seller app: Mystore, SellerApp, Zoho Vikra, GoFrugal, or another ONDC-integrated platform
8. Submit documents and complete KYC: Upload all registrations, PAN, Aadhaar, and bank details
9. Create product catalogue: Upload product images, descriptions, pricing, and category mappings
10. Configure logistics: Select logistics partners, define serviceable pin codes, and set delivery timelines
11. Go live: Activate your listing and start receiving orders across all ONDC buyer apps
12. Set up compliance: Arrange for ongoing GST filing, ROC compliance, and tax management

Summary

ONDC represents a structural shift in Indian e-commerce - from platform-controlled marketplaces to an open, interoperable network where sellers retain more revenue, own their customer data, and are not locked into a single ecosystem. With commissions of 3% to 10% (versus 18% to 40% on Amazon and Flipkart), 800+ cities covered, 370,000+ vendors, and 14 million monthly transactions growing at 200% year-on-year, the network has crossed the experimental phase. Registration is straightforward: get your GST registration, choose a seller app, complete DigiReady certification, submit your documents, upload your catalogue, and go live. Combine your ONDC presence with Startup India recognition and MSME registration to access tax benefits, credit schemes, and government procurement preferences. The sellers who join now - while the network is scaling and competition is lower - will have the strongest position when buyer traffic reaches critical mass. The cost of waiting is higher than the cost of starting.