Why An Amazon Seller Should Incorporate In US?

Can I sell Product on Amazon USA from India? If this question is popping up continuously, read further.

The answer to your question is YES.

If you think that you need to be in USA for selling your product on Amazon US, get ready for a surprise. As per the estimates, out of 2 million third-party global sellers on Amazon, 83% sell in US marketplace with more than 50% located outside U.S.

Regardless of the location of your business, it is highly recommended to register your business as a legal business unit in US if you are eyeing to sell more than handful items on Amazon per month. Apart for making it a smoother process, it will also provide various tax benefits.

Incorporating a business and that too in a foreign country may seem to be a daunting task. Here are some compelling reasons why it is the important step to not lose precious lucrative opportunities for your business.

Getting Started with Amazon

To get started with your business on Amazon, you need to set up an Amazon account or use their warehouse facility through FBA program. In case you are going to sell as merchant, there are few other legal requirements which you will be made aware of.

Normally a non-citizen of US will have similar requirements to fulfil as the residents or citizens of the country if you are planning to sell through Amazon. Following is the list of requirements:

  • A home / business address for correspondence
  • Email Address which can be used for communication
  • A valid phone number is required for identification during registration process
  • An international chargeable credit card with a valid billing address
  • A Bank Account that can accept payment from Amazon
  • United States Tax ID: FEIN number or social security number (in case of individual)

It is always beneficial to get the FEIN number and sell as a merchant, which becomes a lot easier when the company is registered. You can also take benefit from tax advantages of being a business. Additionally, registering a business means protection of the personal assets. Consequently, it also smoothens the whole process if you are going to use FBA.

Opening Bank Account

Opening the Bank account is the first and foremost step for any business endeavour. For instance, you won’t be able to receive any payments if you don’t have registered your bank account details with Amazon.

Apart from the fact that being a non-resident is in itself a hindrance to the process, American Banks just as any other bank would require company registration documents, as a part of their bank compliance policies, to get ahead with corporate accounts.

Access to Loan/Investments

If you want to upscale your business, you might need investment, if not now then may be in future. US is the most attractive market to find genuine investors for your business and for that you need a company registered in US.

This is due to the fact that the US investors are often reluctant to finance businesses that are foreign.

Also borrowing from any US bank will require your US business credit history. If you don’t have a US company, there will be no credit history hence chances of securing loan become slim. Incorporating the business in US will provide that edge and authenticity to your business not only in the US but globally.

At the same time, an American company would likely to do the business with a company registered in US as it would be easier to tackle legal issues here at home than anywhere else. It has also been seen that the businesses in US can affect due diligence on their counterparts in a state registrar of companies online.

Incorporate your company Today!

You can get started with incorporating your business today and start reaping the benefits instantly through Amazon. Although the process needs crucial planning and several other aspects like- selecting the company type, selecting the state, registering for the FEIN number for starters- where the professionals at OCP can prove to be resourceful.