What jurisdiction to choose when registering a company for business on Amazon

It should not be forgotten that the EU market provides the platform with up to 80% of its “foreign turnover “*.

* The data are 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, can be a very profitable decision. An analysis of the following factors will help to determine this:

• demand for your chosen product in Europe and America;
• logistics. If you are focused on fulfilment (shipment to Amazon warehouses) and your target audience is Europeans, the conclusion is very logical;
• projected turnover;
• opportunities to legally reduce income tax and avoid double 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, current situation, initial investment amount, etc.

For example, we advise some businesses to register in Malta. Under certain circumstances, this allows you to reduce tax to 5% of profits while staying within the law. Moreover, it will not be an offshore company.

For example, we advise some businesses to register in Malta. Under certain circumstances, this allows you to reduce tax to 5% of profits while staying within the law. Moreover, it will not be an offshore company.

You can also consider the United Kingdom and other midshores as a country for registration – jurisdictions with flexible tax rates that adhere to international transparency standards. Advantages of midshores:

• stability in the banking sector;
• the ability to open a company account;
• relative ease of company and trade mark registration;
• simple taxation and reporting system (often in electronic form and only once a year);
• the ability to rent a physical office in the country of registration.

Important! If you are planning to run a Private Label business, please note that the internal Amazon Brand Registry programme offers this feature for a limited number of countries.