Do you need to set up a company to sell on Amazon Europe?

 
Do You Need to Set Up a Company

HOW TO SELL ON AMAZON EUROPE - THE DEFINITIVE GUIDE


Do you need to set up a company to sell on Amazon Europe?

In answering this question, let’s address the two most common scenarios - those who are already selling on Amazon.com and those who are new to selling on Amazon.

SCENARIO 1 - I'M ALREADY SELLING ON AMAZON.COM

Amazon Europe presents its list of countries accepted for seller registration at this link .

If you are registered under one of these countries and selling on Amazon.com, you can expand to and sell on Amazon Europe using your existing company.

This is the most straightforward option when getting started.

Some people like to incorporate a new company, but this is not necessary when starting out - it will result in extra costs, including incorporation fees and annual costs to maintain the new company, like professional fees for accounting and tax reporting.

SCENARIO 2 - I'M NEW TO SELLING ON AMAZON

Amazon presents its list of countries accepted for seller registration at this link - you can register with a company from any of these countries.

You may have a preference of setting up a company in your country of residence.

However, if you want a suggestion from us, we believe a UK company is a good option for a number of reasons:

  • UK companies can be incorporated by non-UK residents

  • It’s easy to set up and everything can be completed online 

  • No language barrier (if you’re an English speaker), which makes communication and understanding the requirements and applicable laws a lot easier

  • Lower corporation tax (20%*) than many of its counterparts in Western Europe e.g:

    • Germany (22.8% to 32.9%)

    • France (33.3%)

    • Italy (27.9%)

    • Spain (25%).

  • Synergy with UK VAT reporting** - finding a UK accountant that can deal with VAT and annual reporting for your UK company will simplify your business' accounting

  • Strong banking jurisdiction

* UK corporate tax will be reduced to 17% from 2020.

** If you follow our advice and send all of your stock to the UK when getting started, it will simplify your company’s initial dealings with VAT - this is explained in further detail in the next section of our guide (VAT for Amazon Europe).

NEED HELP WITH setting up a company for AMAZON EUROPE?

We recommend Avask Accounting, who specialize in working with Amazon sellers.

In addition to company setup, they can also assist with accounting and VAT for Amazon Europe Sellers. Speaking of VAT, that's what we'll cover in the next section of our guide!

Note - AMZEurope.com is not a legal firm, the information here is presented for educational purposes only. Always seek advice from a professional on legal matters like company incorporation and tax structuring.



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