Can I Use a UK Company to Sell on Amazon?
Yes. You can use a UK limited company to sell products on Amazon, including through Amazon.co.uk and, depending on your setup, other Amazon marketplaces. A UK company can be used to own the Amazon seller account, purchase or manufacture products, receive sales proceeds, work with suppliers, use Fulfilment by Amazon (FBA), and build a private-label or wholesale business.
However, forming a UK company does not automatically make an Amazon business compliant. You still need to consider Amazon's seller verification requirements, VAT, Corporation Tax, product restrictions, fulfilment, customs, consumer protection and, in some cases, packaging and other environmental obligations.
For non-UK founders, this distinction is particularly important. A UK company can provide the corporate structure for an international Amazon business, but the company's incorporation country does not by itself determine every tax or regulatory obligation.
Can a UK Limited Company Have an Amazon Seller Account?
Yes. Amazon allows businesses to register as selling partners and requires business sellers to provide information for identity, business legitimacy, address, ownership or business association, payment and bank-account verification. Amazon may request documents such as a government-issued ID, business registration documents, proof of address and bank statements. A typical structure could look like this: Founder → UK Limited Company → Amazon Seller Account → Customers, The company can then:
- Purchase inventory from manufacturers or wholesalers
- Sell under its own brand
- Sell products from other brands where authorised
- Use Amazon FBA
- Receive Amazon payouts into a business bank account
- Pay suppliers and operating expenses
- Record Amazon sales and expenses in the company's accounts
- Pay Corporation Tax on taxable company profits
The important point is that the Amazon business and the individual founder are not necessarily the same legal entity. If your UK company owns and operates the Amazon store, keep the company's finances and documentation separate from your personal finances.
What Do You Need to Sell on Amazon Through a UK Company?
Before opening the account, prepare the information Amazon is likely to require.
1. UK company details
You should have your company's legal name, company registration details and registered/business address available. Amazon's business verification process may require evidence that the company exists and that you are genuinely associated with it.
2. Identity documents
Amazon requires identity verification for the person responsible for the seller account. This can include a government-issued identity document. A company does not eliminate the need for individual identity verification.
3. Bank account
You need a bank account capable of receiving Amazon proceeds and paying relevant business expenses. The account should correspond appropriately with the seller/business information you provide. Keeping company funds separate also makes bookkeeping and tax reporting much easier.
4. Payment card
Amazon requires payment-card information as part of seller registration.
5. Tax information
Amazon asks sellers for relevant tax information. A VAT number may be required where the company is VAT registered. Having a UK company, however, does not automatically mean you must register for VAT immediately. Your VAT position depends on how and where you sell, where inventory is stored, your turnover and other circumstances.
Do You Need a UK Company to Sell on Amazon UK?
No. You can sell on Amazon without incorporating a UK limited company. Amazon has individual and professional selling plans, and the appropriate structure depends on your circumstances. So why do some entrepreneurs choose a limited company?
A company can be useful when building a serious ecommerce operation because it creates a separate legal entity for the business and can make it easier to structure ownership, contracts, accounting and growth. For example, imagine an entrepreneur launching a private-label skincare brand. They could operate as an individual seller, or they could establish: ABC Trading Ltd
ABC Trading Ltd purchases products from a manufacturer, owns the brand, sells through Amazon, pays suppliers and records the resulting business income and expenses. As the business grows, the company structure may also make it easier to introduce shareholders, directors or other business arrangements. That does not mean incorporation is automatically the right choice for every Amazon seller. The decision should consider costs, administration, tax and the founder's circumstances.
Amazon Individual vs Professional Selling Plans
Amazon UK currently offers Individual and Professional selling plans. Amazon's published pricing shows the Individual plan at £0.75 per item sold, while the Professional plan is £25 per month, excluding VAT, in addition to applicable selling fees. Amazon also states that most referral fees are between 8% and 15%, depending on the category.
The Professional plan is generally designed for sellers expecting higher sales volumes and provides additional tools and features, including advertising and advanced selling functionality. Amazon's fees can change, so sellers should check the current fee schedule before calculating profitability.
How Does Tax Work When a UK Company Sells on Amazon?
There are two separate issues to understand: Corporation Tax and VAT.
Corporation Tax
A UK company generally calculates Corporation Tax based on its taxable profits rather than simply its Amazon sales. For example:
- Amazon sales: £150,000
- Product costs: £60,000
- Amazon fees: £25,000
- Advertising: £15,000
- Other allowable business costs: £20,000
The company's taxable profit will not simply be £150,000. The relevant expenses and tax rules must be considered when calculating taxable profits. For the 2026 financial year, the UK Corporation Tax small profits rate is 19% for qualifying profits of £50,000 or less. The main rate is 25% for profits above £250,000, with Marginal Relief available between those thresholds, subject to the applicable rules. The rate is therefore based on taxable profit, not Amazon turnover. Amazon sellers should maintain accurate records of:
- Product purchases
- Amazon referral fees
- FBA fees
- Advertising expenditure
- Shipping and freight
- Customs and import costs
- Software subscriptions
- Professional fees
- Refunds and returns
- Other legitimate business expenses
Good bookkeeping becomes increasingly important as sales volume grows.
Do Amazon Sellers Need to Register for VAT?
Not necessarily from day one. For a UK-established business, compulsory VAT registration generally depends on taxable turnover exceeding the current £90,000 VAT registration threshold. Voluntary registration may also be possible below the threshold. However, Amazon sellers need to look beyond turnover alone. Where your inventory is located can be extremely important.
For example, a company using Amazon FBA may place inventory in fulfilment centres so Amazon can dispatch products quickly to customers. Where inventory is stored can affect VAT registration and reporting obligations. Amazon's own VAT guidance notes that non-UK resident sellers using FBA to store goods in the UK can have an immediate UK VAT registration requirement, regardless of turnover. This is particularly relevant for founders operating a UK company from another country.
Example
Suppose a founder lives outside the UK and owns a UK limited company. The company purchases £30,000 of stock and sends it to an Amazon UK fulfilment centre. The fact that annual sales are below £90,000 does not necessarily mean there are no VAT obligations. The location of the stock and the precise selling arrangement need to be examined. This is one reason Amazon sellers should establish their VAT position before sending significant inventory into fulfilment centres.
What If Your Amazon Products Come From China?
A UK company can source products from China and sell them through Amazon UK. A common model is: Chinese manufacturer → UK import/customs process → Amazon FBA → UK customer, But the company needs to account for more than the manufacturer's invoice. Potential costs include:
- International freight
- Import VAT
- Customs Duty
- Customs clearance
- Amazon inbound shipping
- Product compliance
- Packaging requirements
- FBA fees
- Amazon referral fees
- Advertising
- Returns and refunds
For goods entering Great Britain from abroad, Customs Duty can apply to goods worth more than £135, subject to the applicable rules, while import VAT can also arise. A product that appears profitable on Alibaba or another supplier platform can therefore become considerably less profitable after landed costs.
Calculate landed cost, not just supplier cost
A better calculation is: Product cost + freight + insurance + customs + import VAT treatment + packaging + Amazon fees + fulfilment + advertising + returns = true cost of selling, This figure should be calculated before committing to a large purchase order.
Can You Use Amazon FBA With a UK Company?
Yes. Fulfilment by Amazon (FBA) allows sellers to send eligible inventory to Amazon fulfilment centres. Amazon then handles many elements of storage, order processing, picking, packing and delivery. For a growing ecommerce business, FBA can remove much of the operational burden associated with fulfilling individual orders. But FBA does not mean Amazon takes responsibility for every obligation of your business. You remain responsible for matters such as:
- Product legality and safety
- Brand and intellectual property rights
- Tax compliance
- Appropriate product documentation
- Product listings
- Supplier relationships
- Business records
- Regulatory obligations
Amazon also has category and product restrictions. Some products require approval, some categories have additional requirements, and certain products cannot be sold by third-party sellers. Amazon specifically advises sellers to check category, brand and FBA restrictions before listing products.
Can a UK Company Sell Private-Label Products on Amazon?
Yes. Private-label selling is one of the common ways a company can build an Amazon brand. For example, a UK company could:
- Research a product category.
- Develop its own product or specification.
- Work with a manufacturer.
- Create a brand.
- Obtain appropriate intellectual property protection.
- Design compliant packaging.
- Import inventory.
- Create an Amazon listing.
- Send stock to FBA.
- Market the product through Amazon advertising and other channels.
However, private label is not simply a matter of putting your logo on a generic product. The company should consider trademarks, product safety, labelling, instructions, packaging, insurance and the regulations applicable to the specific product. If you sell branded products belonging to someone else, Amazon may also require evidence that you are authorised to sell them.
What About Packaging and EPR?
Amazon sellers can also encounter Extended Producer Responsibility (EPR) obligations. UK packaging EPR rules can apply to businesses that supply or import packaged goods. GOV.UK specifically identifies activities such as supplying packaged goods under your own brand and importing goods in packaging when determining whether a business is a packaging producer.
Depending on the business and its size, obligations can include registration, packaging-data reporting and fees. This matters particularly for private-label Amazon sellers importing branded products into the UK. Do not assume that because Amazon handles fulfilment, every packaging or environmental responsibility automatically transfers to Amazon.
Can a Non-UK Resident Use a UK Company to Sell on Amazon?
Yes. A founder does not necessarily have to live in the UK to own a UK company that sells on Amazon. This is particularly relevant to international entrepreneurs who want to establish a UK business while managing operations remotely. However, there are several separate questions:
- Where is the company incorporated?
- Where is the founder tax resident?
- Where are goods stored?
- Where are goods imported?
- Where are customers located?
- Where is the business actually managed?
- Does the founder have tax obligations in their home country?
- Does the company have VAT obligations in countries where inventory is stored?
A UK company therefore provides a corporate structure, but it does not automatically eliminate tax obligations in another country. For global founders, this is one of the most important distinctions to understand.
IncorpUK, for example, positions UK company formation as part of a broader business infrastructure for global founders who want to start and manage a UK company remotely. The company formation itself is only one part of building an operational ecommerce business.
Can One UK Amazon Account Sell Across Europe?
Yes, Amazon allows sellers to use a single seller account to sell across multiple European marketplaces, although expanding internationally introduces additional tax, product compliance, pricing, language, customs and inventory considerations. The biggest issue is often where Amazon stores your inventory.
For example, Pan-European FBA involves storing inventory in multiple European countries. Amazon notes that storing goods in countries other than your home marketplace can create additional VAT registration and reporting requirements. So international Amazon expansion should not be treated simply as: UK company → click European marketplaces → start selling A more realistic model is: UK company → UK compliance → product compliance → VAT analysis → marketplace expansion → inventory strategy → country-specific obligations, That approach reduces unpleasant surprises as the business scales.
A Practical UK Company + Amazon Setup Checklist
Before launching, work through this checklist.
Company structure
- Form the UK limited company if appropriate.
- Keep company and personal finances separate.
- Maintain accurate statutory and accounting records.
Amazon
- Create the appropriate Seller Central account.
- Complete identity and business verification.
- Choose Individual or Professional selling plan.
- Check product and category restrictions.
- Understand Amazon's current fees.
Tax
- Determine Corporation Tax obligations.
- Check whether VAT registration is required.
- Understand the effect of FBA inventory storage.
- Consider import VAT and customs.
- Keep complete sales and expense records.
Product
- Verify supplier legitimacy.
- Confirm product safety requirements.
- Check trademarks and intellectual property.
- Keep invoices and supplier documentation.
- Review packaging and EPR requirements where applicable.
Fulfilment
- Compare FBA with merchant fulfilment.
- Calculate landed cost.
- Forecast inventory requirements.
- Account for returns and damaged stock.
International expansion
- Check VAT obligations in each relevant country.
- Review customs requirements.
- Understand local product rules.
- Do not assume UK compliance automatically covers overseas markets.
Frequently Asked Questions
Can I sell on Amazon with a UK limited company?
Yes. A UK limited company can operate an Amazon seller business, provided the company and seller account meet Amazon's verification and marketplace requirements.
Do I need a UK bank account to sell on Amazon?
Amazon requires bank-account information for seller registration and payouts. Whether you need a specific UK bank account depends on your account setup and Amazon's current requirements. A suitable business banking arrangement should be established before launch.
Do I need VAT registration to sell on Amazon UK?
Not automatically. VAT requirements depend on factors including your business establishment, turnover, inventory location and selling model. UK-established businesses generally need to register once taxable turnover exceeds the £90,000 threshold, while particular FBA and overseas-selling arrangements can create different obligations.
Can a non-UK resident own a UK Amazon business?
Yes. A non-UK resident can potentially own a UK company that sells through Amazon. However, the founder's country of tax residence and the location of inventory and operations can create additional tax obligations.
Can my UK company use Amazon FBA?
Yes. A UK company can use Fulfilment by Amazon for eligible products. FBA can simplify storage and fulfilment, but it does not remove the seller's responsibility for tax, product compliance and other business obligations.
Can I sell products from China through a UK company on Amazon?
Yes. Many ecommerce businesses source products internationally. However, you need to consider import VAT, customs, product safety, shipping, intellectual property and the full landed cost before importing inventory.
Can I sell my own brand on Amazon through a UK company?
Yes. A UK company can develop and sell its own private-label brand, subject to Amazon's requirements and applicable intellectual property, product safety, labelling and consumer laws.
Can I sell on Amazon Europe with a UK company?
Yes, but European expansion can introduce additional VAT, customs, product compliance and inventory-storage obligations. Using FBA to store inventory in multiple EU countries can create VAT registration requirements in those countries.
Is a UK company automatically the best structure for an Amazon business?
Not necessarily. The right structure depends on the founder's residence, tax position, expected sales, ownership arrangements, operating countries, product type and long-term plans.
Conclusion
Yes, you can use a UK company to sell on Amazon, and a UK limited company can provide a practical structure for building a professional Amazon business. But successful Amazon selling involves considerably more than company formation. You need to connect four areas properly: the company structure, Amazon seller account, tax position and physical flow of products. Once you add FBA, international suppliers, private-label products or European expansion, VAT, customs, product compliance and packaging obligations can become increasingly important.
For a small UK-focused seller, the setup may be relatively straightforward. For a non-UK founder importing products and using FBA across several countries, the compliance picture can be much more complex. The strongest approach is to decide where the business will sell, where inventory will be stored, who owns the products and brand, and how the goods will move before placing a major inventory order. That planning can help you build an Amazon operation that is not only capable of making sales, but structured to support sustainable growth.