You are at liberty to conduct online art competition charge nominal entry fees and pay winner prize money 

2) you can require winner to produce produce such other document/s from the Winner as it may deem fit to its
sole and absolute satisfaction:
• Identity Proof,
• Address Proof,
• PAN Card (of the Parent/guardian 

Signed copy of this terms and conditions of the Parent/guardian

Create a website that acts as your portfolio. It is handy to show to prospective clients your site.

Dear Sir,

It is quite possible and you are not require to register for the same also because it's may be used as encouragement for the new entrants as artists and artisans. Only what you need to have the panel of experts for deciding the articles for prize and also keep consideration in mind regarding the taxes involved. 

Definitely you have every right to start business online legal tenable as per the provisions of Law. 

You have to create you exclusive website for your online business for which you have to hire website designers for your business. 

You have to register with Department of of Telecomunication for permission to conduct online trading, payment gateways and prize distribution on line in India. 

You have to get your brand and patent registered in case you want no copy right violations in your trading. 

You have to get license for your business and business premises from Local authorities and State, Central Government. 

Now you are ready to commence your online business legally with permits from all competent authorities. 

You do not have to register anywhere, just make sure as an organiser you provide all the information about your self and be honest in conducting the contest. 

Regards

- There is no special permission is required to organise online contest of showpieces etc. 

- However, if you want to advertise the same , then a permission from Department of Telecommunication is required . 

Every person desiring online contest have to obtain a license and shall make an application in writing to the licensing authority. License authority may be either collector or some other govt. officer. 

Registered firm 

GST No.

A website 

Thats it 

No permission is required to conduct and competition if it is based on individual skill,  merit. 

If  only luck and chance decides the result then you must obtain permission if prize money I'd more than one thousand rupees. 

Yes you can go forward but online adhere to tax implications in the same

There is no necessity to register the proposed online business. 

You may ensure that as an organiser you provide all the information about  the proposed business  with correct details and genuine conditions.

You may create an  exclusive website for your online business for which you may  have to hire website designers for your business.

You are at your liberty to conduct online art competition with nominal entry fees and pay winner prize money as announced in your website.

no permission required for online contest.

following documents required for e commerce

Company/LLP Registration

gst registration

bank account

You should make a website and advertise the contest on various e commerce platforms and newspapers WhatsApp Facebook etc. People will come and register. Engage a lawyer who will write all the necessary rules and regulations and liability of your organisation.

1. You don't need any permission for conducting online art competition.

2. You can make a general entry form mentioning about terms and conditions for entry in the contest with original art peice. 

3. You can also take declaration form from candidate taking part in the competition for declaring that the art peice is their original creation and is not copy of any artifact. 

4. If candidate is minor than take declaration form from parents or guardian of candidate.