Initially set up only for book sales, at the present, Amazon.com is a huge online retailing business. In 2013 alone, Amazon shipped 608 million packages, which translated to 1.6 million packages per day. Since 2015, Amazon.com predicted its fulfillment centers were within 20 miles of 31% of the population in the U.S., and within 20 miles of the 50-65% of its core, same-day-accessible market. In this article, our Estonian company formation agents explain a few details connected to opening an Amazon store in Estonia.
Setting up a private limited liability company in Estonia
The private limited liability company (O.U.) in Estonia is the most popular type of legal entity in this country, being less costly and easier to manage, therefore being chosen especially by small and mid-size companies.
In order to set up such a business vehicle in this country, a unique name has to be chosen.
The minimum share capital for a private limited liability company in Estonia is EUR 2,550 divided in shares which are owned by its shareholders, with a minimum value per share of EUR 6.4.
The shareholders can register the shares with the Central Securities Register in Estonia, however, this procedure is not mandatory.
Setting up such a company in Estonia implies having one or several shareholders. The shareholders of such an entity do not have to be Estonian citizens or to reside in the country.
If you intend to open such a company in Estonia, our company registration advisors in Estonia can help.
We offer various accounting services in Estonia to all types of local businesses. Every client will get a personalized offer that takes into consideration the specifics of their business activity, so that they find reliable to outsource their accounting. Get in contact with us and ask for a quotation of our services and enjoy the benefits of outsourcing such a service.
Opening a merchant account in Estonia
In order to set up an Amazon store in Estonia, the company must have a merchant account. This type of account enables the business to accept debit and credit card payments.
There are two different methods through which such an account can be opened:
1. Sign an agreement with a member bank which has a processing relationship with credit card payment providers. Our Estonian company formation consultants can provide more details on this option; or
2. Sign an agreement with an authorized agent of the member bank, like an independent sales entity or a member service provider.
The agreement implies that the business agrees to comply with the operating regulations set up by credit card establishments.
If you would like to set up an Amazon store in Estonia, or for help to open an Estonian company, please get in touch with us.