Introduction
For entrepreneurs seeking an opportunity to sell their products on international markets, the Amazon Fulfilment by Amazon (FBA) business model is one of the best ways of doing so. However, Indian entrepreneurs who have been selling on Amazon India and other markets will likely consider extending their operations to the United States through the creation of an Amazon FBA Company that has been registered in the United States. There are numerous advantages to this type of operation, including access to the largest e-commerce market in the world, higher average selling prices, and faster shipping times due to using Amazon's extensive fulfilment network. However, due to the unique requirements of operating within the United States (legal, tax, operational, compliance, etc.), it is important for Indian entrepreneurs looking to start an Amazon FBA Company to pursue this venture strategically. This guide has been created to assist Indian entrepreneurs who wish to start an Amazon FBA Company under a U.S. corporation by providing insight into potential structures for the U.S. corporation, regulatory/tax considerations, and operational steps involved.
I. Why Start an Amazon FBA Business with a US Company?
Selling on Amazon.com (USA marketplace) gives sellers access to an extensive customer base, plus Amazon has significant buying strength. The infrastructure of FBA for Amazon stores includes storage (warehousing), packing products, shipping, delivery, and handling customer service. This gives sellers the opportunity and ability to concentrate on developing and marketing their products, instead of worrying about these logistical aspects of running an Amazon FBA Business. Creating a company in the United States (with a corporation in Florida) to run your FBA Business offers you several benefits:
1) When operating through a United States corporation, you will enjoy the following:
i) Credibility in the marketplace and easy payment of taxes;
ii) Improved payment processing and banking;
iii) Simplified compliance with logistics and fulfilment;
iv) Improved access to Amazon Brand Registry and trademark registration;
II. Key Prerequisites to Start FBA with a US Company
1. Form A U.S. Business (LLC/C-Corporation)
Most Indian sellers open up a U.S. LLC (Limited Liability Company), as they are easy to set up, can be structured simply for tax purposes, and provide a level of protection from liability. Other sellers will choose to structure their businesses as C-Corporations if they wish to make them ready for investor funding or additional future funding.
The process of registering your business typically consists of:
Select a state to incorporate. The most popular options when forming an LLC are Delaware, Wyoming, and Florida.
File articles of organisation (this form is required for LLCs) with the Secretary of State.
An Employer Identification Number (EIN) is mandated for tax reporting and can be used when registering with the Amazon FBA program, and will be issued by the Internal Revenue Service (IRS).
Some banks may have additional requirements for opening business accounts if you reside outside of the U.S. This usually involves more documentation; however, some people use traditional banking relationships, and some use FinTech platforms designed for global eCommerce entrepreneurs and foreign sellers.
2. Open a U.S. Business Bank Account
A business bank account in the U.S. is likely the easiest way for foreign sellers to receive their payouts from Amazon. Some international sellers may find it easier to work with their local banks and use services such as Wise or Payoneer; however, many attorneys and finance professionals recommend opening a formal business bank account as an alternative to avoid payment holds and potential issues concerning your bank account.
3. Apply for a state and federal tax ID.
Amazon will require sellers to have state sales tax numbers for the locations where they store inventory, due to the creation of nexus through local Amazon FBA distribution centres. As the tax code in the U.S. is very comprehensive, it is recommended that sellers enlist a qualified U.S. tax accountant for assistance in order to ensure compliance with state and federal tax requirements.
4. Provide an identity and address verification to Seller Central.
For Amazon Global Selling requirements, sellers must demonstrate their identity and provide proof of their address, by a valid passport, and supporting documents, often through a series of documents submitted or actual in-person meetings via video conferencing.
III. Operational Structure — US Company vs. Indian Entity
Two models for Indian entrepreneurs entering a US FBA business can be identified as follows:
1) Direct Ownership of a US Company
Indian Entrepreneurs set up a US Limited Liability Company (LLC) or Corporation to conduct business in the US. The Indian company's inventory, sales, and brand management will be managed through the US Company. This option provides a stronger, more accurate representation of the company's obligations for taxes in the US. However, it also has costs associated with keeping the US Company compliant with the IRS and potentially multiple states.
2) A US Company that utilises an Indian Company to operate
The second option provides an Indian Company with the ability to operate under the buying and selling framework of a US Company while sourcing, manufacturing and exporting their products through the Indian Company's operations. Under this framework, the US Company would purchase the inventory from the Indian Company and sell it through Amazon FBA.
Each of the aforementioned models has its own unique impact on transfer pricing, taxation, and the logistics/supply chain of your product. Therefore, we recommend you consult with a licensed accountant/tax professional to review your specific needs and find which model is most beneficial for your individual business needs.
IV. Step-by-Step Guide to Starting an Amazon FBA Business
Step 1: Conducting Market Research & Selecting Products
Utilise Amazon's tools, conduct keyword research, and complete a competitive analysis to find products that are in demand within the US market. Be sure that the products selected comply with US regulations (no banned categories) and allow for profit after the costs of sales and shipping.
Step 2: Forming a US Corporation
There are many ways to form a corporation in the US. Choose a state and type of company to create; file to set up the company; get an EIN (Employer Identification Number) from the IRS; and prepare your foundational documents (such as your operating agreement).
Step 3: Open a US Bank Account
By linking your bank account with your Amazon Seller Central via the Amazon platform, all payout transfers will be seamless. You can use companies such as Payoneer and Wise to facilitate the movement of currencies across international borders, but it is preferred to have a bank account formalised through a US bank.
Step 4: Opening a Seller Account on Amazon
Once your new corporation is registered in the US, you will be able to register as an Amazon seller. Select the "Professional Selling Plan" for your Amazon Seller Central account. You will complete an identity verification form, complete a tax information interview, and submit your bank account information.
Step 5: Optimising your brand & product Listing
After you have registered your trademark, you can enrol in the Amazon Brand Registry, where you can prepare & optimize your product listings to convert more customers by using quality images, A+ content, and keyword-optimised product descriptions.
Step 6: Choosing Where to Source Your Products & How to Export Them
Source products in the country of India or globally and ship them to FBA Centres within the United States of America. Third-party carriers or logistics recommended through Amazon are both viable options. The Import Export Code (IEC) from India is required for customs clearance purposes.
Step 7: Transfer Inventory to FBA Centres
Utilising Amazon's creation tool for shipments to the respective FBA Centres enables you to send your products, and subsequently, Amazon will hold your products on behalf of the company and deliver them directly to the end-user.
Step 8: Promotional Strategy and Advertising
Utilising Amazon’s Advertising platform with promotional offers and/or effective pricing tactics drives increased awareness and sales in a highly competitive marketplace within the United States.
Step 9: Compliance with Tax and Laws
As a seller in the United States of America, tax filing must occur monthly or quarterly, as determined by the Regulations of the Federal and State Government. If large sales revenue is generated, it may be appropriate for you to consult with a CPA within the United States.
V. Latest 2025 Updates Affecting Indian Sellers (Important)
1. The fee structure and FiBA programme were modified from 2025
Including a reduction in theFiBAA Placement Fees for bulky products or other large items, and the increase in new product fee waivers through the FBA New Selection Programme. These changes are meant to allow new sellers to get going more quickly by reducing the initial operational costs associated with setting up shop on Amazon's platform.
2. Rapid Growth of Cross-Border Sales in India
Within the few short years that many have begun selling items across borders to the USA, many have already exceeded hundreds of thousands of dollars in sales. This might indicate a very strong demand for many types of products from Indian sellers, particularly the textile, handicraft, and speciality categories.
3. Global Selling Tools and Support
Amazon continues to support global selling by continuing to build out the global seller account, integrating a unified North American and Brazil-based Amazon.com account, working with logistics partners to create a streamlined global shipping process, and providing the resources to aid with compliance when registering and selling products from India to the USA or any other region.
VI. Legal and Compliance Considerations
US Tax Compliance
Foreign-owned US LLCs need to consider:
- Federal Tax Returns
- Possible State Sales Tax Liability
- Withholding Taxes for Non-Resident Owners
Professional tax consulting is recommended.
Trademark/Brand Protection
To help ensure against having your listing hijacked and improve eligibility for Brand Registry, A+ Content, and Brand Analytics, you should apply to register your trademark in the US.
Intellectual Property
Do not produce any goods that infringe the patents or trademarks of others in the US. Amazon offers many tools for protecting your brand, but it is important to take the time to perform your own due diligence before using said tools.
Conclusion
By establishing an Amazon Fulfilment by Amazon (FBA) business originating from a US corporate entity, Indian entrepreneurs can access the global marketplace. Setting up correctly and successfully requires detailed business planning, legal/tax compliance, and readiness (operationally) to conduct a business in both India aandthe United States with its respective laws and regulations.
The major success factors in 2025 for US FBA sellers will include:
Selection of an appropriate U.S. business entity (which is usually an LLC); Establishment of banking and tax registration in the U.S.; Adherence and compliance with Amazon seller and FBA policies/regulations; Utilization of Amazon's 2025 incentive programs/benefits and other services available for selling globally; and Development of logistics from India to the United States, including compliance with export regulations.
When properly established and executed, Indian sellers should be well-positioned to build scalable, compliant, and successful Amazon FBA businesses that target U.S. customers. Selling on Amazon enables sellers to tap into one of the largest e-commerce marketplaces in the world with a global presence.
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