To sell goods on Amazon in the USA and export those goods from India, you need to consider several key registrations and steps to ensure legal compliance and smooth operations. Here’s a comprehensive guide:
1. Business Entity Registration
Choose and register a business entity in the USA. The two most common types are:
- Limited Liability Company (LLC): Offers flexibility and pass-through taxation.
- C Corporation: More complex but can be advantageous for raising capital and scalability.
Steps:
- Choose a state for registration (Delaware, Wyoming, and Nevada are popular choices for non-residents).
- File the necessary formation documents with the state.
- Obtain an Employer Identification Number (EIN) from the IRS for tax purposes.
2. Register with Amazon
To sell on Amazon, you need to create a seller account:
- Amazon Seller Central Account: Register as a professional seller to access a wider range of tools and services. You’ll need your business details, including your EIN, and a U.S. bank account for disbursements.
3. Importer of Record (IOR)
As you’ll be importing goods from India, you need to understand the role of the Importer of Record:
- IOR Responsibilities: Ensure compliance with U.S. Customs regulations, including filing necessary paperwork, paying duties, and taxes.
- Customs Broker: Hire a customs broker to handle the import process and ensure compliance with U.S. Customs and Border Protection (CBP) requirements.
4. Product Compliance
Ensure your products comply with U.S. regulations:
- Labeling and Safety Standards: Check the Consumer Product Safety Commission (CPSC) and the Food and Drug Administration (FDA) for specific requirements related to your products.
- Tariffs and Duties: Determine applicable tariffs and duties on imported goods. A customs broker can assist with this.
5. Sales Tax Registration
You may need to register for sales tax in states where you have a sales tax nexus:
- Sales Tax Nexus: Created by having a physical presence, significant sales, or inventory stored in an Amazon Fulfillment Center (if using Fulfillment by Amazon, FBA).
- Sales Tax Permits: Register for sales tax permits in states where you have nexus. Use tools like TaxJar or Avalara to help manage sales tax compliance.
6. Shipping and Logistics
Decide on the logistics of shipping your products:
- Freight Forwarder: Engage a freight forwarder to manage the transportation of goods from India to the USA.
- Fulfillment by Amazon (FBA): Consider using Amazon’s FBA service to store, pack, and ship your products. This can simplify logistics and make your products eligible for Prime shipping.
7. Bank Account
Open a U.S. bank account to receive payments from Amazon and handle business expenses:
- Business Bank Account: Necessary for managing your business finances and receiving disbursements from Amazon.
8. Trademark Registration (Optional)
Consider registering a trademark for your brand in the USA:
- Trademark Protection: Protects your brand from being used by others and adds credibility to your business.
Conclusion
Selling goods on Amazon in the USA and exporting from India involves multiple steps, including business registration, compliance with import regulations, sales tax registration, and efficient logistics management. By following these steps and leveraging professional services like customs brokers and freight forwarders, you can ensure a smooth and compliant operation.