Which Jurisdiction to Choose When Registering a Company for Amazon Business
At first glance, it may seem that the topic of the article is not relevant. After all, if you start a business on an American trading platform, it is logical to register the company within the legal framework of the United States. But everything is not so clear and requires a deeper dive. Let's figure it out.
Amazon is not just America
Beginning entrepreneurs with big ideas and burning on page seo service eyes always associate Amazon only with the American market. In part, this is the right strategy, if, of course, you have correctly selected the product for the mentality and needs of the target audience.
But we should not forget that the EU market provides the site with up to 80% of its “foreign turnover”*
* data is based on analysts' hypotheses, as Amazon's official statistics do not show revenues by country
In any case, targeting the EU market, as well as choosing the jurisdiction of individual European countries, may prove to be a very profitable decision. An analysis of the following factors will help determine this:
demand for the product you have chosen in Europe and America;
logistics. If you are aiming for fulfillment (shipment to Amazon warehouses), and your target audience is Europeans, then the conclusion is obvious;
expected turnover;
ways to legally reduce income tax and avoid double taxation
taxation;
political and economic stability of the country.
Simply put, there is no single right solution and each case should be considered in the context of prospects, the current situation, the starting amount of investment, etc.
For example, we recommend some businesses to register in Malta . Under certain circumstances, this allows you to reduce the tax to 5% of the profit, while remaining within the law. Moreover, it will not be an offshore company.
Also, as a country for registration, you can consider the UK and other midshore jurisdictions - jurisdictions with flexible tax rates that adhere to international transparency standards. Advantages of midshore:
stability in the banking sector;
the ability to open a company account;
relative simplicity of registering a company and Trademark;
simple taxation and reporting system (often electronic and only once a year);
the possibility of renting a physical office in the country of registration.
Important: If you plan to run a Private Label business, please note that the internal Amazon Brand Registry program offers this feature in a limited number of countries. |
