Choosing to sell on Amazon is becoming increasingly popular for individuals, sole traders, and limited companies, providing enhanced exposure and access to millions of potential customers online.
According to Mintel, almost 90% of all UK shoppers use Amazon, and around 70% make purchases on the site at least once a month. As a result, Amazon is now the 5th largest retailer in the UK. It’s easy to see why it’s such an appealing selling platform for new and existing businesses of all sizes.
At Rapid Formations, we receive a lot of enquiries from people who are interested in setting up a limited company for an Amazon business. The two most common queries are:
- Is it better to sell on Amazon as a limited company or as a sole trader?
- Can I change my Amazon Seller account from sole trader to limited company?
To answer these questions and help you to make the right decision, we will discuss the sole trader and limited company options available in the UK, as well as the process of setting up an Amazon Seller account. By the end of the blog, you should have a better understanding of this confusing topic and be confident in your decision to sell on Amazon as a limited company or sole trader.
Should I sell on Amazon as a sole trader or limited company?
Deciding whether to use a sole trader or limited company business structure depends on how much you’re going to sell on Amazon. Choosing the wrong type of business structure could significantly impact your Income Tax bill and National Insurance contributions (NIC), so it is not a decision that should be taken without careful consideration.
Generally, if you’re only likely to sell a small number of items each month, or you are planning to sell on Amazon on a casual basis, registering as a sole trader will probably be best. In these situations, you’re unlikely to gain any tax advantages by setting up a company. However, if you intend to sell a lot of products on Amazon on a regular basis, it will be more tax-efficient to set up a limited company. You will also benefit from limited liability.
Potential tax savings
Limited companies pay 19-25% Corporation Tax on profits. Sole traders pay 20-45% Income Tax on profits (or 19-48% in Scotland). Value Added Tax (VAT) may also be payable. However, the rules and requirements for VAT registration are the same for companies and sole traders, so this potential tax liability will apply either way and should not influence your choice of business structure.
Choosing to sell on Amazon as a limited company will enable you to minimise your personal tax liability and National Insurance contributions (NIC). This is because you will be able to pay yourself a combination of salary and dividend payments.
By taking a salary below the National Insurance primary threshold, you won’t have any NIC or Income Tax to pay. The primary threshold for the 2024/25 tax year is £12,570.
Meanwhile, the first £500 of dividends will be tax-free. Any dividend income above that amount will be subject to dividend tax rates between 8.75% and 39.35%, which are far lower than Income Tax rates. Furthermore, neither you nor your company will have to pay NIC on dividend income.
Conversely, if you choose to sell on Amazon as a sole trader, all profits will be treated as personal income. This means that all of your profit will be subject to varying rates of Income Tax and NIC.
As a general rule of thumb, you will pay more tax as a sole trader than a limited company when your annual income from all sources reaches around £50,270 per year – the point at which you start paying the higher rate of Income Tax.
Limited liability
Aside from the potential tax-saving benefits, setting up a limited company will also protect your personal finances. This is because limited companies are treated as distinct legal entities (just like people), so they are responsible for their own debts and liabilities.
If your business faces any legal issues or is unable to pay its bills, your personal finances and assets will be protected beyond what you’ve already invested in the business.
If you set up as a sole trader, there will be no legal distinction between you and the business. All business debts and liabilities will be your debts and liabilities, so your personal finances and assets will be at risk if anything goes wrong.
Is it difficult and expensive to set up a company?
There are many misconceptions regarding setting up a limited company. People assume it is difficult, expensive, and requires a lot of work. In reality, it’s really quick and easy to set up a company, it can cost as little as £12.99, the annual reporting requirements are pretty straightforward, and using an accountant to deal with your tax affairs will probably save you money.
You can register a limited company for your Amazon business online. It takes around 5 minutes to fill out the application form, and most companies are set up within 24 hours. When your company is registered, you will receive all of your incorporation documents and you can start trading immediately. You can then set up your Amazon business on the very same day.
The simplicity of company formation comes as a surprise to many people. It is no longer an exclusive business structure reserved only for affluent entrepreneurs and large businesses. Limited companies are suitable for all types of traders and all sizes of businesses, both new and established.
You will have a few additional filing obligations and may have to spend a little more money on an accountant (which is optional, not required), but you will have the opportunity to retain more of your Amazon profits. Your accountant can advise on the best ways to minimise your tax bill and operate your business in the most tax-efficient way, so you will probably save more money than you spend on any such additional services.
Changing Amazon Account from sole trader to limited company
If you are already set up as an Amazon Seller, changing from a sole trader to a limited company can be tricky. It really shouldn’t be, but the process of moving an Amazon Seller Account to a new entity requires re-verification, which seems to result in significant delays.
In many cases, sole traders who request to transfer an existing seller account to a new limited company are unable to sell through Amazon for several weeks or months whilst their accounts are waiting to be re-verified. During that time, seller accounts are often suspended, resulting in lost income.
Given the apparent difficulty that most people face when attempting this process, we would advise setting up a limited company before creating an Amazon Seller Account – particularly if you know or think that you will want to trade as a limited company at some point in the future.
Setting up an Amazon business
There are two ways you can sell on Amazon – by registering as a vendor on Amazon Vendor Central, or by registering as a seller on Amazon Seller Central. As an individual or small business, you will only be able to create an account on Amazon Seller Central, but it’s worth understanding the difference between the two types of accounts.
Amazon Vendor Central Account
A popular option for established manufacturers and distributors, Amazon vendors act as suppliers, selling their inventory (i.e. products) directly to Amazon at wholesale rates. Amazon then resells the products to customers under its own brand name, taking care of everything from pricing and shipping to customer service and returns.
It is not possible to apply to be an Amazon Vendor – registration is by invitation only, reserved for top sellers and well-known brands. Products being sold through Vendor Central will normally feature the phrase “ships from and sold by Amazon.com.” But you never know, one day you may receive an invitation!
Amazon Seller Central Account
Amazon Seller Central is suitable for individuals and any size of business. It is designed as an online marketplace for brands and merchants to sell products under their own name directly to Amazon customers. To sell on Amazon, you will need to choose a selling plan and set up an account on Seller Central.
Amazon Selling Plans
Amazon Seller Central offers two selling plans – a Basic Selling Plan (to sell a little) and a Professional Selling Plan (to sell a lot). You must choose the most suitable plan before creating an account.
Basic Selling Plan |
Professional Selling Plan |
| Ideal for individuals, casual or seasonal sellers, and very small businesses | Ideal for businesses with high-volume sales and/or those selling restricted products |
| Sell up to 35 items per month | Unlimited selling |
| ‘Pay as you go’ pricing – £0.75 (+VAT) fee per item sold | No per-item fee |
| Additional referral fee percentage calculated on the total sales price | Referral fee percentage calculated on the total sales price |
| No monthly subscription fee | Subscription fee of £25 (+VAT) per month |
| Sell products in certain categories only | Sell in all categories |
| Add items to Amazon Marketplace one at a time | Add large batches of products using bulk tools |
| Amazon-set delivery rates for all products | Seller-set delivery rates for non-BMVD products (Books, Music, Video, and DVD) |
Which selling plan is right for you?
Your choice of selling plan will depend on two things: the products that you’re selling, and the number of items that you plan to sell each month.
If you’re selling products in a category requiring approval and/or you’re planning to sell more than 35 items per month, you will need to choose the Professional Selling Plan.
Here is a simple cost-benefit analysis to help you decide which selling plan in best:
- The Basic Selling plan offers a pay-as-you-go rate of £0.75 (+VAT) per order
- You would need a minimum of 34 sales/month to offset the £25.00 (+VAT) subscription fee for the Professional Selling Plan (34 x £0.75 = £25.50)
- If you have fewer than 34 sales per month, the Basic Selling Plan will likely be the best option for you.
You can easily switch between Amazon’s Basic and Professional selling plans at any time, downgrading if you’re not selling enough each month or decide to take a break, and upgrading if you need access to additional features or it becomes cost-effective to use the Professional Selling Plan at any point.
Please note: Amazon sometimes refers to the Basic Selling Plan as the ‘Individual’ selling plan, so don’t be thrown if you come across this term when you’re creating an account or reading articles on Amazon or other websites.
Create an Amazon Seller Account
Once you get to grips with the terminology, requirements, and restrictions, creating an Amazon Seller Account is (usually) quite straightforward. Essentially, there are three main steps:
1. Decide what you want to sell on Amazon
You will first need to choose the appropriate Amazon product category under which to list your products. More than 20 ‘open categories’ are available to both Basic and Professional sellers. Additional ‘categories requiring approval’ are available only to sellers with the Professional Selling Plan. We discuss this in more detail below.
2. Choose a selling plan
Basic Selling Plan or Professional Selling Plan?
3. Register and start listing
Once you’ve chosen your product category and selling plan, you are ready to create your Amazon Seller Account. You will need to provide the following information (where applicable):
- Location of business (or your country of residence if you don’t have a business)
- Type of business
- Sole proprietor (sole trader)
- Privately owned business (limited company or partnership)
- Publicly-listed business (PLC)
- State-owned business
- Charity
- Individual (a person, rather than a business)
- Legal business name
- Your full name
- Registered business address
- Business phone number
- Company registration number
- Unique Taxpayer Reference (UTR) number
- Full name of the primary contact for the seller account
- Personal information for the primary contact person
- Country of citizenship
- Country of birth
- Date of birth
- ID (passport, UK driving licence, or National ID)
- Residential address
- Telephone number
- Verify your telephone number by entering a one-time pin that is provided to you by text message or voice call
- State whether primary contact is a beneficial owner of the business or a legal representative of the business
- Payment method (to pay your seller fees and to receive proceeds from sales)
- Store name for listing your products on Amazon Marketplace
Next, you will be asked to enable two-step verification to protect your account. Use your phone number to receive a ‘One Time Password’ by text message or telephone call and enter it when prompted.
When you have successfully completed the verification, you will be taken to your Seller Central dashboard where you can manage your account details and provide any required documentation, such as proof of ID, business documents, and VAT details. Once Amazon has received and validated your data, you can start listing your products.
Categories and products requiring approval on Amazon
To comply with all applicable laws and ensure that customers can shop with confidence, approval is required to sell certain products on Amazon. Given that Amazon sells a vast range of products, the list is extensive. Here is a brief overview of the types of listings that may need approval:
- Alcohol
- Adult-oriented products
- Clothing (e.g. branded items)
- Drugs and dietary supplements
- Electronics
- Food & beverage items
- Jewellery
- ‘Made in Italy’ products
- Music and DVDs
- Items in the Toys and Games category from November to the end of January
- Streaming Media Players
- Items in Amazon Handmade
Agreeing to Amazon’s Acceptable Usage Policy (AUP)
You are required to notify Amazon at the time of agreeing to the Acceptable Usage Policy (AUP) if you are planning to sell items in one of the following categories:
- Alcohol
- Adult-oriented, erotic, and sexual health products
- Dietary supplements and nutritional products
- Knives
- Non-prescription drugs
- Prescription and non-prescription eyewear
Amazon Payments Europe will have to perform additional checks to verify this information, which may delay the process. To select the relevant AUP category, you must:
- Click the ‘Settings’ tab on the top right of your Seller Central account, then click ‘Account Info’.
- Click on ‘View or Edit’ next to the option ‘Amazon Payments Europe Acceptable Use Policy’. You will find this tab in the first grey box that appears at the top of the page.
- Select the relevant category or categories. If you don’t want to sell in any of these specific AUP categories, no further action is required. Otherwise, follow the next step.
- If you want to sell goods in one of the specific AUP categories, you need to inform Amazon by selecting the relevant category in Seller Central.
What business documentation do I need to provide to Amazon?
If you’re creating an Amazon Seller Central account as a business (rather than as a private individual), you will be asked to provide certain documentation to verify your identity and the existence of your business (if applicable).
Private limited company
- Current appointments report / Company Report dated within the last 90 day
- Utility bill, bank statement, or credit card statement in the name of the business, dated within the past 90 days
- Articles of Association
- Memorandum of association or statement of capital
Partnership
- HMRC correspondence that contains the partnership’s UTR number, name, and business address, and one of the following:
- Notice to complete a tax return
- Letter confirming the partnership’s registration with HMRC
- Most recent tax return of the partnership, which must include the UTR number and the name and business address of the partnership
- Utility bill or bank statement in the name of the business, dated within the past 90 days
- Partnership agreement
Sole trader
- Self Assessment welcome letter
- Certificate of registration for Value Added Tax (VAT)
- Correspondence from HMRC acknowledging UTR number
- Notice to complete Self Assessment Tax Return
- Utility bill, bank statement, or credit card statement in the name of the sole trader or trading name of the sole trader, dated within the past 90 days
Registered charity
- Governing document
- Current appointments report
- Charity Commission report
- Confirmed list of all trustees – must display full name and date of birth of each trustee
- Utility bill or bank statement in the name of the charity and including the registered address, dated within the past 90 days
Individual (private) sellers and primary contacts
- Full valid passport
- National Identity Card
- UK driver’s licence
- Utility bill, bank statement, or credit card statement addressed to the individual and dated within the past 90 days
You will provide the required information and/or documentation in your Amazon Seller Central account. Go to ‘Settings’ then ‘Account Info’ and select the sections that are highlighted in red to see what you need to provide.
It usually takes Amazon between 5–10 working days to verify information, but it can take longer. You may be able to sell on Amazon whilst your information is being verified, but this is subject to certain criteria. In some cases, you may have to wait until your information is verified before you are permitted to sell on Amazon.
Where can I get a copy of my ‘business registration extract’?
A business registration extract is an official document that confirms the registered details of a business. The document that you will need to provide for this purpose depends on your business structure.
If you decide to sell on Amazon as a UK-registered limited company or LLP, you can provide a Company Report. To obtain this document, follow these simple steps:
- Sign into your Companies House account at https://account.companieshouse.gov.uk/signin
- Enter your company name or company registration number in the search box
- Select the ‘View all’ tab
- Select ‘View company information snapshot’ at the bottom of the page
- Your company report will download to your computer device
If you decide to sell on Amazon as a sole trader or partnership, your UTR number may suffice as a business registration extract, but you might have to provide evidence by uploading a copy of a letter from HMRC that contains your UTR.
Uploading more than one document at a time
There is a limit to the number of documents that you can upload and submit for review. If you need to provide several documents, you may have to merge them into one document. You can do this by scanning each document, merging the scanned images into a Microsoft Word document, and creating a PDF.
Providing VAT details to Amazon
As per the laws governing EU member states, Amazon charges VAT on all orders delivered to customers within these EU countries. Whether registered as a sole trader or a limited company, your Amazon business may be subject to VAT registration in one or more countries.
If your Amazon business is set up in the UK, you will need to register for VAT in the UK if:
- You store inventory in the UK, and
- You sell these goods to UK-based consumers, and
- Your annual sales exceed the UK VAT threshold of £90,000
- If you sell goods to customers in other EU countries, you might also have to register for VAT separately in those EU countries
If your Amazon business is set up in a different EU country, you will need to register for VAT in the UK if:
- You store your inventory in the UK, or
- You sell to non-business consumers based in the UK, and
- Your annual sales exceed the UK distance selling VAT threshold of £70,000
If your Amazon business is set up outside the EU, you will need to register for VAT in the UK if:
- Items that you store in the UK are sold to EU customers
- If you sell to consumers in other EU countries, you might also have to register for VAT separately in those EU countries
You can add your VAT registration number(s) and upload your VAT certificate(s) for your Amazon business once you have created your seller account. We would strongly recommend using an accountant if you need to register your sole trader or limited company Amazon business for VAT because it is an incredibly complex issue.
Getting paid for your Amazon sales
When consumers buy goods from your Amazon business, they pay via Amazon Pay rather than directly to you. Amazon deducts the applicable fees based on your selling plan then transfers the remaining proceeds to the business bank account linked to your seller account.
To get paid for your Amazon sales using Amazon Pay, you must:
- Set up your bank account in Amazon Seller Central
- Ensure that you have a valid bank account or credit card number as your charge method in Seller Central
- Sell your goods using Amazon Pay buttons
- Dispatch your sold goods only to the addresses specified by the buyer and communicated by Amazon Pay
- Capture payments for your orders to collect payments from your buyers
Amazon Pay will transfer sales proceeds to your nominated bank account 14 days after the first business day (i.e. Monday-Friday) on which the corresponding purchases were made. If you set up (or change) your bank account at any time, your payments will be suspended for three days as a security measure.
Hello Rachel,
My friend and I, will hopefully be starting up and registering an Amazon (LC) business partnership, here in the UK, soon. My friend (who is the primary investor) is currently living in the UK; however, after we set up the business, he will be moving to Asia to live, while I will still be residing in the UK.
My questions are: Can we still form an Amazon LC business partnership – even though we’ll both be living in different continents?; where will our company address be when he moves abroad?; and does his moving away from where the business was originally registered (UK) affect anything?.
Kind regards, and many thanks.
Peter.
Hi,
Thank you for the question.
We would advise that the company address is based in the location of Amazon you are applying to. If it is Amazon.co.uk then we would recommend keeping your company address in the UK.
Amazon may have certain restrictions on which countries they allow people to be residents of, can you confirm which country in Asia your friend will be moving to?
Regards,
The Rapid Formations Team
Hi,
Interesting read!
If I have a limited company and Im selling via amazon but Im due to move to Spain in few months then in this situation would you happen to know can I continue operating with the same setup (UK registered lc and selling in amazon) and if yes then would I need to let amazon know as well that my residential address is different country now?
Thanks & regards,
Thank you for your kind enquiry.
To adhere to Amazon’s terms and conditions, you must inform them if your residential address changes to another country. Amazon are then likely to request proof of address for the new location. However, should you be able to provide this to Amazon, this should allow you to continue operating with the same UK registered limited company setup, selling on Amazon.
We trust this information is of use to you.
Regards,
The Rapid Formations Team
Hello,
Thanks for this informative post.
I have few questions:
1- Will the 19% corporate tax be payable from £ 1 which means there is no tax free allowance?
2- If I live in a rented accommodation can I use it as LTD address or this is not allowed? If possible, what will happen if I change my address later on?
3- if it is a limited company and it does not exceed the 85000£ limit, can it still claim VAT even if not VAT registered?
Regards
Thank you for your message, Eslam.
With regards to your first question, Corporation Tax is payable on all company profits, so it would be payable on a £1 profit. There is no tax free allowance on Corporation Tax; however, you can pay yourself a salary which would decrease the profit of your business and therefore the Corporation Tax owed.
Regarding your second question; whilst Amazon do not place a limitation on rented accommodation being used as a limited company address, you should check your tenancy agreement as with many tenancy agreements, there is a prohibition on registering a limited company to that address.
With regards your VAT question; you can voluntarily apply for VAT registration even if you do not reach the £85,000 threshold. Once registered for VAT, you will be able to claim back VAT paid; however, you cannot do this if you are not registered for VAT. We can register your limited company for you for you – see this link for more information: https://www.rapidformations.co.uk/vat-registration/
We trust this information is of use to you.
Regards,
The Rapid Formations Team
Hello
I registered a LTD to resell goods from Alibaba on Amazon. I try to register Amazon seller account and I need bank statement. I need business bank statement? If yes,how I will have a statement if I want to sell only on Amazon and I need seller account? I need to have only VAT or something else for buying from Alibaba ? Thank you
Thank you for your kind enquiry, Olga.
Amazon require private limited companies registered in the UK to provide a utility bill, bank statement or credit card statement in the name of the business, dated within the last 90 days. This is required for their verification procedures. There is no way to avoid this request from Amazon in order to activate your Amazon Seller account.
Should you require access to a business bank account, our team can provide you with a referral to either Wise (formerly TransferWise) or Payoneer, from which you can open a UK business bank account and request a bank statement for use for verification with Amazon.
We trust this information is of use to you.
Regards,
The Rapid Formations Team
Hi Rachel,
Enjoyed reading this article. I currently have an individual seller account on amazon and wish to sell in a gated category. The product is a lego item and requires approval, but also states that they are not currently taking applications. Would I need to change to a professional account, or is it a lack of sales/seasonal thing?
I’m working just over 30 hours a week and would be selling less than 35 items a month, to begin with.
Thank you
Thank you for your kind enquiry, Hardeep.
In general terms, products which require approval to be sold on Amazon are normally those where fraud is high or there is a danger of harm should the product being sold be a fake, uncertified etc. With regards to why Amazon may not be taking applications for a particular product, this is likely because they restrict the number of sellers for certain products due to potential harm for new sellers of a product, or due to contractual arrangements with various parties. We do not believe it is likely that a change in status of the account would make a difference to Amazon accepting an application for this product.
We trust this information is of use to you.
Regards,
The Rapid Formations Team
Please can someone guide me regarding opening the seller account with amazon uk, I am already self employed . Which is good option to start as a pvt ltd company or sole trader. thanks
Thank you for your kind enquiry, Muhammad.
In general terms, whether you set up as a private limited company or as a sole trader is an independent decision to setting up an Amazon seller account.
We would recommend you read this blog article to aid you in making this decision: https://www.rapidformations.co.uk/blog/limited-company-advantages/
Should you require any further assistance, please leave a follow up comment and we will get back to you.
Kind regards,
The Rapid Formations Team
Hi,
I have created my UK limited company with the permission of companies House and also I have done my bank account and now I want to create Amazon seller central account but in the process of sign up I start from professional not individual and after that what business type I have to chose there is some options like; State owned business and privately owned business and individual business so which option I have to chose??? Plz tell me
Thank you for your kind enquiry, Sana.
A limited company constitutes a ‘privately owned business’ in this context, and this is what you should select. A ‘state owned’ business would be one owned by the government, and an ‘individual business’ would be a sole trader or partnership (as opposed to a limited company).
We trust this information is of use to you.
Regards,
The Rapid Formations Team
Hi,
we are a German manufacturer of food supplement ts. Are you aware of a fiscal representantive who will act as the important agency for my Amazon UK sales.
Thanks,
Sebastian (lestocq@web.de)
Thank you for your kind enquiry, Sebastian.
In relation to your query – unfortunately we are unable to advise in relation to recommended fiscal representatives who may be able to act in the manner you have described above. Can you clarify if what you are seeking is an accountant, as we can refer you to a top 20 Chartered Accountancy firm if you wish?
We look forward to hearing from you in due course.
Kind regards,
Rachel
Hi. Great Read. Helpful thank you!
I am planning to setup amazon seller account in a few weeks (as a UK citizen from birth) and then in a few months plan to move to Australia.
But continue to run this Amazon UK account from.there.
What would I need to do when I change my address abroad regarding Amazon and also tax?
Hope you can help in this one.
Thanks
Thank you for your kind enquiry, Chris.
As a sole trader, you will be required to register for self-employment in Australia upon arriving there. We unfortunately cannot advise on Australian tax laws, as this is outside our level of expertise.
With regards to informing Amazon – you will need to inform them of your new residential address within your Amazon Seller portal. However, there is nothing preventing you from continuing to run your business as a UK business, once set up, as far as we are aware.
If you are going to register for VAT, you will still be required to pay VAT to HMRC in the UK as per normal.
We would advise that it may be simpler for you to run your UK business as a limited company if you are going to be based abroad, to avoid the prospect of double taxation – i.e. being asked to pay tax from HMRC in the UK via Self Assessment and being asked to pay tax in Australia. With a UK limited company, it is more likely you would only need to pay UK taxes, which would simplify things for you.
I trust this information is of use to you.
Regards,
Rachel
Hello,
Very useful article. If I may, could you answer me the following:
– could I open an LTD using a PO Box or Mailbox as a business registered address for selling on Amazon?
– could I open a bissiness bank account using a PO Box? I can provide them my home address too, but I think I will need that PO Box address to appear on the statement for Amazon verification, right?
– Does Amazon accepts having your company address as a PO Box? as I don’t want everyone to see on Amazon listing my home address
Kind regards,
Emilian.
Thank you for your kind enquiry, Emilian.
Unfortunately, you will be unable to open a LTD company using a PO Box, as it is prohibited for the registered office address to be a PO Box. However, if you place the full physical address of the PO Box on Companies House as your registered office address, this will be allowed.
With regards a business bank account, the bank will require you to provide them with the actual operating address of your business (i.e. where it actually resides). However, you will also be able to provide them with a mail correspondence address.
With regards to Amazon, once again – they will require you to provide them with the actual operating address of the business for anti-money laundering purposes; however, you will also be able to provide them with a mail correspondence address.
Please note that we provide limited companies with a professional address service which will provide you with the solution you are facing. Please check out our Compare Packages page here: https://www.rapidformations.co.uk/compare-packages/. Alternatively, please give us a call on 0044 20 7871 9990, and we will be happy to help you.
Regards,
Rachel
Dear sir please tell me how i can open amazon.com seller account on uk limit company informations..because i have uk limited company and amazon uk seller account?
Thank you for your kind enquiry, Muhammad.
Unfortunately our advice is only for the UK version of Amazon. We would recommend you carry out the steps on the American version of Amazon to open your Amazon Seller account. You can get started here: https://sell.amazon.com/sell.html
Sorry we could not be of more help in this instance.
Kind regards,
Rachel
Hello, Rachel
Thank you for your helpful information.
Is it possible to sale in the UK and US using one account?
Kind Regards,
Abeselom
Hi if my brother opens bank account in Uk and create a (LTD) company and registard vat from different approved country and he allow me to open a amazon seller account by using his bank account , company and vat is that possible
2nd Q: please could you tell me to opens a amazon seller account need only Driving license or amazon will ask Pasport as well later on many thanks
Thank you for your kind enquiry, Imran.
In general terms, the limited company of your brother should be able to open an Amazon Seller account based on the information you have provided. However, you may have to provide Amazon with information pertaining to yourself if you are going to be operating the account.
With regards to the ID documentation that Amazon will request, this may depend on your country of citizenship; however, in general terms they do accept driving licences from most countries.
I trust this information is of use.
Regards,
Rachel
Hello Rachel
Thanks for you valuable reply. Indeed، It is very informative.
But to ensure I have understood perfectly. You say it is accepable to create amazon account with rapidformation virtual address and there is no issue with tha even if thousands of people uses the same address..
but you can not register VAT with this virtual address and it needs to be real physical one. Am I right ?
Thank you for your kind reply, Basem.
No, Amazon will ask you for the operating address of your company. This is the address the majority of the work of your company is actually carried out from. As you do not carry out your work from our address, you cannot provide your address to Amazon as your operating address. You can only provide our address to Amazon as your registered office address and mail forwarding address, if you have the relevant address services with us.
With regards VAT registration, as with Amazon, you need to provide HMRC with the Principal place of business address, which is the address your company carries out the majority of its work from. Therefore, you cannot provide our address for this purpose.
I trust this information is of use to you. Any other questions, just let us know.
Regards,
Rachel
Hello Rachel,
I watched Amazon account creation videos for some vloggers.
I find amazon asks for company address and residential address.
you mean operating address to be the residental address?
Also the same case with HMRC should I provide them with residental address as operation address?
Thank you for your kind response.
You should only provide Amazon and HMRC with your operating address as your residential address if you carry out the majority of your business from your residential address, or if you work on the move and have no fixed address where your business carries out the majority of its work.
Otherwise, the operating address provided should be where your business carries out the majority of its work.
I trust this information is of use to you.
Kind regards,
Rachel
Kind regards
Hello Rachel,
I decided to form a company with rapid company formation but I have heard that the registered office address should not be virtual and this put your LTD in danger. As this virtual address is used by thousands of people and amazon do not like this also HMRC sends people to see if the company has a real presence or not. AND if HMRC did not find the office in reality you may not be able to register VAT. SO what’s your opinion about these sayings
Thanks in advance
Thank you for your kind enquiry.
There appears to be a bit of confusion regarding the difference between a registered office address and the actual operating address of the company.
Legally speaking it is perfectly acceptable in accordance with the Companies Act 2006 to provide a virtual office address as a limited company’s registered office address on Companies House public record.
With regards to Amazon, for anti-money laundering reasons, they are required to ascertain the actual operating address of Amazon seller companies – this is different from the Registered Office address – which is where statutory documents can be served by Courts and government bodies.
Regarding HMRC – if you are registering for VAT, you will be required to provide a ‘Principal place of business’, which HMRC define as where the company carries out the majority of its work. As your company will not be carrying out the majority of its work from the physical address of the virtual office address provider, the registered office address should not be provided to HMRC for this purpose. In our terms and conditions it specifically states that our registered office address cannot be provided to HMRC as the ‘Principal place of business’ for VAT registration purposes, for this reason.
It should be noted that neither Amazon nor HMRC make these addresses available to the public.
I trust this clarifies the matter for you.
Kind regards,
Rachel
Hi Rachel,
Thank you for your page and all the information. I am currently thinking of only opening sole trader/personal amazon fba account for side income rather than limited company.
Just wondering do I need to have UTR number to create a private account? I just do not want to register for limited company nor apply for UTR. However if this is not possible then I will apply for UTR.
Many thanks for your help.
Kind regards,
John
Thank you for your query, John
The side income you speak of technically counts as self employment. As a result, you will need to ensure you apply for a UTR with HMRC and provide this to Amazon to ensure you are properly taxed for this income.
I trust this information is of use to you.
Regards,
Rachel
Hello Rachel,
If I reside in another country other than my motherland, So the utility bill should be for my current residential address or for my motherland.
Also if I have 2 amazon account for 2 marketplaces, should all my address be the same? and if my account is verified should I modify it or no need?
Hi Basem,
Thank you for your kind enquiry. To answer your questions:
Your utility bill should be for your current residential address, which should match what Amazon have on their records as your residential address.
With regards your two amazon accounts, we would recommend all the addresses remain the same, as otherwise one of the accounts may not have your correct residential address listed, which could lead to verification issues and a disruption to account.
I trust this information is of use to you.
Regards,
Rachel
Thank you so much for the detailed explanation of setting a seller account on amazon.its very helpful.
Thank you for your kind words, Taira. W
We’re pleased you found this article useful – we wish you the best of luck with your Amazon seller account!
Regards,
Rachel
Hi , Thank you for you extensive guide on creating an Amazon seller account ! My main concern is when going through the verification process how do you provide and utility statement to Amazon if you use a formation company? What can be used instead of that.
Thank you
Thank you for your kind enquiry, Humaira. The utility bill should be from your residential address, and is normally required to be dated within the past 3 months. This is so that Amazon can verify the residential address of the account holder. A company formation agent would be unable to assist you with this part of the process, as it involves your residential address.
I trust this information is of use to you.
Kind regards,
Rachel
If having opened a sellers account in the UK and Europe as a LTD company and open a sellers account in the US, as a ltd company do I a) press Individual ie sole proprietor or LLC … or b) Business which then gives me multiple options to press including Corporation or disregarded entity. This seems to be a constant source of confusion for all Uk Ltd sellers.
I have been told:
Sole proprietor is the same as sole trader in the UK which is not the same as Ltd Company.
LLC is Not the same as LTD in uk either – so does that mean single person owned UK ltd company is a Business and if so, should we press Corporation or Disregarded entity?
Please help – no definitive answer anywhere!!!
Thank you for your kind enquiry, Louisa.
An LLC is the American equivalent of a UK limited company. Whilst there are differences, for the purposes of Amazon selling, you should press LLC as an LTD company.
I trust this information is of use to you.
Kind regards,
Rachel