E-commerce is one of the thriving industries of our days and an online store like Amazon cannot be overlooked when thinking about selling goods on the Internet. 2016 was one the best years for Amazon as the net sales reached 136 billion USD generated from the owners of more than 300 million accounts everywhere in the world. A large share of Amazon’s income came from third-party sellers who can set up their own business and use the e-retailer’s platform to sell products.
Singapore is no stranger to the phenomenon of enterprisers seeking to open Amazon stores because of the advantages the local government offers to online businesses. Singapore is one of the most important business hubs in Southeast Asia and many goods usually sold on Amazon pass through here before reaching their final destinations, so setting up an online store is quite advantageous. Our Singapore company formation specialists can explain how to set up an Amazon shop here.
You can also watch our video on how to open a company in Singapore in order to establish a Singapore Amazon shop:
Why open an Amazon store in Singapore?
Among the reasons foreign investors open companies in Singapore is the taxation system. The city-state boasts one of the most advantageous taxation systems in the Asia-Pacific region, with a corporate tax rate of 17%. However, this rate can decrease substantially thanks to numerous tax incentives. The same applies to those who want to open Amazon stores in Singapore.
Enterprisers can choose the type of structure best suited for their needs, among the most sought one being the limited liability company. This can take the form of a startup in the beginning, case in which the Singapore authorities will offer various tax deductions and grants.
Registering an Amazon business in Singapore
The rules of Amazon imply for third-party sellers to have an organized form of doing business and a goods and services tax number. This can be translated into Singapore company formation. From sole proprietorships to the above-mentioned limited liability company, a Singapore Amazon store can take any form.
Our company registration consultants in Singapore can assist with the incorporation of the chosen structure. This implies preparing the company’s statutory documents, their filing with ACRA, the opening of the bank account and the GST number registration, which we remind is mandatory when opening an Amazon shop.
Other requirements for setting up an Amazon shop in Singapore
When having an Amazon store is very important to be able to receive payments through methods such as PayPal or having a merchant account.
PayPal is an online portal through which companies and natural persons can transfer money electronically. This is the most common way in which third-party sellers in Amazon accept payments from their customers. However, merchant account opened by Singapore companies are also suitable options. The merchant account is a bank account opened with a financial institution which allows for the processing of online payments. PayPal also offers merchant account services in Singapore.
Foreign entrepreneurs who want to open a company in Singapore with the purpose of creating an Amazon stores have various choices when setting up bank accounts. They can choose local banks or branches of the largest foreign banks which operate here.
If you want to start a company and sell goods on Amazon, please do not hesitate to contact our Singapore company formation agents for assistance.