Hi, aakshjain153!
My last two cents since I think I'm not further helpful on this subject:
1) You titled this topic and wrote "Online Database" but you stated too "i am going to share via email": one thing doesn't has anything related with the other, and your project looks like more to the 2nd than to the 1st description.
2) You're gonna email a simple file to N people who'd be able to update it depending on your allowable edition schema but you didn't specify how the data modified (added, deleted, updated) will be consolidated back in the sent file at your location. Big issue that might not be easy at all.
3) You should have 2 workbooks, your master for distribution and your N returned updated to be processed to generate a new master.
4) That workbook should have the normal worksheets, plus at least 2 more: one as splash worksheet used at open time and one very hidden and better if scrambled for holding available user ID and Passwords (and all data related to user access like columns allowed to edit and so on).
5) At open time (handled by workbook open event code) only splash worksheet should be visible and over it an user form asking for ID & Pwd should be displayed. If successful identification, then splash screen should be hidden (optional) and normal worksheets should be turned visible.
6) At save time (handled by workbook before save event code) nothing should be done.
7) At close time (handled by workbook before close event code) splash worksheet should be turned visible (optional, upon 5), normal worksheets set to very hidden, and the workbook saved. Remember to disable application events at start of the code to avoid infinite triggering of events.
8) At worksheet selection/activation time (handled by worksheet activate or workbook sheet activate event code), you should unprotect the workbook and unlock allowed edition ranges depending on logged in user access.
9) At worksheet deselection/deactivation time (handled by worksheet deactivate or workbook sheet deactivate event code), you should lock allowed edition ranges depending on logged in user access and protecting the workbook, if you're not planning to do it at close time.
Summarily, it's not an easy project, you should have at least intermediate VBA skill level, and even then you should reformulate if that it's what you intended to achieve when you thought in an online database.
My last penny if you still decide to go on with that schema, give a look to this link:
http://chandoo.org/forums/topic/user-form-via-qat
There you'll find all the guidelines and a sample file that you might use for developing your mail based solution, which I insist, it looks like an online database as well as a Budweiser looks like a Carlsberg.
Regards!