Last Updated on August 4, 2026
In this blog, we discuss Amazon FBA’s role in giving a boost to Indian businesses that want to sell on Amazon. If you are an entrepreneur in India who wants to take advantage of Amazon FBA, you can learn about the business structures available and which registrations you would need to go through for compliance.
When you are starting a business on Amazon or transitioning from casual selling to a registered business, getting the business structure sorted from the start will save time, tax, and GST troubles down the road.
Quick Summary
Amazon FBA sellers in India can operate as a sole proprietorship, OPC, LLP, or Private Limited Company, depending on their business goals and compliance requirements. GST registration is generally required for selling through Amazon, and certain products may require additional licences or registrations. Choosing the right business structure helps ensure legal compliance and supports future business growth.
- Choose a suitable business structure based on your ownership, funding, and expansion plans.
- GST registration is generally required for selling on Amazon and other e-commerce marketplaces.
- Keep essential documents ready, including PAN, bank account details, GSTIN, and business registration documents, where applicable.
- If inventory is stored at Amazon FBA warehouses, the warehouse location may need to be declared as an Additional Place of Business (APOB), where required under GST law.
- Obtain any product-specific licences or registrations required before listing regulated products.
Start Your Amazon FBA Business the Right Way
Kanakkupillai’s experts can help you choose the right business structure, obtain GST registration, complete company registration, and ensure compliance for your Amazon FBA business.
What is Company Registration for Amazon FBA Sellers?
Company registration refers to the process of establishing a company that has legal status such as proprietorship, partnership, LLP, One Person Company, and Private Limited Company before beginning sales on Amazon. The correct type of registration can help Amazon sellers obtain GST, open a bank account, and fulfil their tax obligations.
Legally, registration is of utter importance because Amazon demands proof of business registration matching government data. Moreover, the Amazon FBA business implies crossing state borders and thus raises multi-state GST requirements.
Why is Company Registration Important for Amazon FBA Sellers?
Registration is important because an established company has an identity as a legal entity, which makes the process of registration on Amazon simpler. Registration also ensures that the seller meets all the obligations of tax, accounting, and business law according to MCA and GST business requirements.
For FBA sellers, the biggest risk of compliance is the idea that Amazon FBA is similar to regular offline business. But in fact, Amazon FBA means working with fulfilment centres, moving inventory between different states, and facing different requirements for sales tax.
Who Needs Company Registration for Amazon FBA Selling?
This system is right for Indian retailers hoping to adopt Amazon FBA, keep inventory in Amazon fulfilment centres, or create a growth-oriented online business. Also applicable for food merchants, exporters that use Amazon Global Selling and firms that plan to grow outside one city or state.
The decision to use it should be made if the seller needs limited liability, a better brand image, or a suitable structure for development and financing purposes. Though small retailers can benefit from being registered formally, it is better to start the process as soon as the seller plans to rely on FBA.
Which Business Structure is Best for Amazon FBA Sellers?
| Feature | Proprietorship | LLP | OPC | Private Limited |
| Setup speed | Fastest | Moderate | Moderate | Moderate |
| Limited liability | No | Yes | Yes | Yes |
| Amazon onboarding | Simple | Simple | Simple | Smooth |
| GST registration | Own name | LLP name | Company name | Company name |
| Equity funding | Not possible | Not possible | Not possible | Possible |
| ESOP for team | No | No | No | Yes |
| Best for | Small/test sellers | Service-based | Solo seller | Scaling/funded |
| MCA annual filing | Not required | Yes | Yes | Yes |
Note: For a new FBA seller testing the market, a proprietorship is fastest and cheapest. For sellers planning to scale, take investment, or operate across multiple states, registering a Private Limited Company from the start avoids costly restructuring later. For a complete SPICe+ filing guide and document checklist, see our guide on private limited company registration for e-commerce businesses in India.
Requirements for Amazon FBA Sellers
To be eligible in this respect, a business needs to have a valid business identity verified in legal terms and all the necessary tax documents. Also, the company has to provide evidence of its banking history, PAN, complete address, and any other licenses that can be acquired in accordance with the laws.
The entrepreneur has to comply with requirements that specify the ability to act as a shareholder, director, partner, or owner depending on the specific form of business chosen. The same goes for GST, as the company has to meet the legal conditions for registration, and FBA sellers typically need GST before they begin selling through Amazon.
Documents Required
The following documents are to be submitted:
- PAN card copy of the businessman.
- Address proof of proprietors like Aadhaar, passport or other acceptable proofs.
- Passport-size photos of individuals.
- Registered office proof like an electricity bill, lease agreement or property papers.
- Details of bank account along with a cancelled cheque for business onboarding.
- If available, also submit GST registration proof.
- Other incorporation documents according to entity type.
- FSSAI licence or other necessary registration.
Make sure all documents match, as any step with a slight difference can lead to delays in incorporation and Amazon onboarding.
Step-by-Step Process for Company Registration for Amazon Seller
- Select the appropriate business structure – Evaluate the requirements concerning liability and compliance and choose whether to begin a sole proprietorship, partnership, LLP, OPC, or private limited company.
- Gather required documentation – Gather information on identity proof, address proof, office proof, bank details, and compliance approvals, if necessary.
- Establish your business – The incorporation forms will be submitted as per the MCA for LLP and Companies, while registration for other business structures should be done at the state or local level.
- Apply for GST registration – GST registration is required for completing Amazon FBA onboarding, and it’s essential to ensure that the GST registration aligns with the business location where the products will be stored. For a complete guide on GST registration documents and the step-by-step process for marketplace sellers, see our guide on GST registration for e-commerce sellers on Amazon and Flipkart.
- Mention the fulfilment centres as Additional Place of Business – Amazon mandates sellers add the address of the FBA centre to their GST registration before commencing FBA.
- Complete the online registration process on Amazon – Provide details such as business name, PAN, bank account, GST number, among others on the Amazon Seller Central.
- Begin FBA shipping once the registration process is accomplished – FBA shipping allows sellers to send their products in bulk to Amazon handling centres for order processing and customer support.
Cost of Company Registration for Amazon FBA Sellers
| Entity Type | Government Fee | DSC Cost | Professional Fee (Approx.) | Total Approx. |
| Sole Proprietorship | Nil (state-level) | Not required | ₹1,000 – ₹3,000 | ₹1,000 – ₹3,000 |
| LLP | ₹500 – ₹5,000 (based on contribution) | ₹1,500 per partner | ₹5,000 – ₹15,000 | ₹8,000 – ₹25,000 |
| OPC | Nil (up to ₹15L capital) | ₹1,500 per director | ₹5,000 – ₹15,000 | ₹7,000 – ₹18,000 |
| Private Limited Company | Nil (up to ₹15L capital) | ₹1,500 per director | ₹8,000 – ₹20,000 | ₹12,000 – ₹25,000 |
Timeline for Company Registration and Amazon Seller Onboarding
| Stage | Estimated Time |
| Sole Proprietorship setup | 1–3 days |
| Private Limited Company / OPC (SPICe+) | 7–15 working days |
| LLP (FiLLiP form) | 7–15 working days |
| GST registration (Aadhaar verified) | 3–7 working days |
| Adding FBA warehouse as APOB | 15 working days (non-core amendment) |
| Amazon Seller Central onboarding | 3–7 days after documents are ready |
| FSSAI (if food products) | 7–30 days depending on category |
| Total end-to-end | 4–6 weeks for smooth applications |
Common delay reasons: name rejection, GSTIN-entity name mismatch on Amazon, wrong NOC for registered office, or FSSAI category errors.
Other Licences and Compliance Requirements
If the seller deals in food products, FSSAI registration or licence must remain valid and updated for the relevant business locations. Any change in address, business activity, or additional stock location may require updates in GST or other registrations.
Compliance Requirements After Registration
After incorporation, the business must keep filings current, maintain books, and comply with MCA and tax deadlines as applicable to the entity type. FBA sellers must also maintain GST compliance, including correct invoices, returns, and state-wise registrations where stock is stored.
Section 194-O TDS: What Amazon Deducts Before Paying You
Under Section 194-O of the Income Tax Act, Amazon (as an e-commerce operator) deducts 1% TDS on the gross sale value before remitting payment to FBA sellers. This applies to all sellers, individuals, companies, and LLPs.
Key facts:
- Deducted automatically, reflected in your Form 26AS and AIS
- Must be claimed as TDS credit while filing your annual ITR
- For companies and firms, no threshold; for individuals, no threshold either (applies to all FBA sellers)
- Mismatches between 194-O TDS in 26AS and declared income in ITR trigger scrutiny notices
Many FBA sellers don’t realise this TDS exists and fail to reconcile it, resulting in either missed credits or tax computation errors at filing.
Penalty for Non-Compliance
Failing to comply can result in Amazon onboarding being denied, GST matters, licensing difficulties, and a complete lack of legally conducted business. For businesses operating in a company or LLP form, not filing MCA papers means facing legal and monetary risks.
When sellers hold inventory at a DC with no GST or APoB in place, or they sell controlled products without the proper licenses, they can get flagged, interrupted, or face some compliance actions. Often, the business loss is greater than the fees that were saved.
Common Mistakes to Avoid
- Selecting the entity type without regard to all liability and expansion requirements.
- Using a personal instead of a business bank account.
- Filing GST in one state but storing the product in another one without informing the APoB.
- Selling food without getting the FSSAI registration.
- Having entity and Amazon sellers’ information that does not coincide with official registries.
- Disregarding MCA or tax compliance after registration.
Benefits of Registering a Company for Amazon FBA
Registering a business provides sellers on Amazon FBA with legal transparency, greater credibility, and a less complicated onboarding process. It simplifies things around state expansion and taxation, and makes creating a reputable brand easier.
The most important benefit for most sellers is a separation of risks: with an official business structure, it is more convenient to differentiate between business and personal matters. This is critical in cases when inventory expands, and regulation becomes sophisticated. Amazon FBA sellers who also register under Udyam MSME unlock priority lending, GeM access, and payment protection under Section 43B(h); see our guide on MSME registration for e-commerce sellers.
Amazon Brand Registry: Why Company Registration Strengthens Your Brand
Amazon’s Brand Registry allows sellers to protect their brand and unlock additional selling features. To register, you need:
- A registered trademark (in India under the appropriate class)
- The trademark must be in the seller’s entity name, not a personal name
A Private Limited Company or LLP provides a formal entity name that can hold a trademark, making it significantly easier to enrol in Brand Registry compared to selling as an individual.
Brand Registry benefits include:
- A+ Content for product listings (higher conversion)
- Sponsored Brands advertising access
- Enhanced brand protection and counterfeit reporting
- Amazon Vine (reviews program)
For FBA sellers building a long-term brand, company registration + trademark registration is the most powerful combination for marketplace growth.
How Can Kanakkupillai Help You?
- Guidance on business structure: Helps you select the appropriate business structure of your Amazon FBA business, whether it is a proprietorship, LLP, OPC, or a private limited company based on the scale and compliance required.
- Company registration: Helps with the process of incorporation, starting from the approval of name, paperwork, and filing with MCA for companies and LLPs.
- GST registration and setup: Provides GST registration services to Amazon and Flipkart sellers and helps them get their business details in line with the seller onboarding process.
- FSSAI support in case of food sellers: In case you are selling food on Amazon.
- Tax and compliance after registration: Provides assistance through the process of filing GST returns, taxes, accounting, and tax compliance management.
- Amazon seller compliance support: Advises about the necessary registrations to conduct business, such as PAN, GST, as well as bank account opening.
- Professional advice: Offers consultation from CA, CS, and business law experts to enable a simple onboarding process and fewer filing errors.
Conclusion
For those selling via FBA on Amazon in India, company registration is key to being compliant and expanding in the market without hassles. Getting the right entity, GST registration, and obtaining product-specific licenses are the steps that will make the onboarding process easy and minimise the risk of legal problems.
When starting or formalising your Amazon FBA business, it is advisable to start with choosing the business structure and company registration and only then begin with the inventory transfer to Amazon fulfilment centres.
Ready to Register Your Amazon FBA Business?
Get expert assistance with company registration, GST registration, and all legal compliances to start selling on Amazon with confidence.
Frequently Asked Questions (FAQs)
1. Is company registration mandatory for Amazon FBA sellers?
Yes, you need a proper legal business identity and the registrations required for your product category, especially GST for FBA operations.
2. Who can apply to sell on Amazon FBA?
Any Indian individual or business that has a valid business structure, GST details, bank account, and product-specific approvals where applicable can apply.
3. What documents are needed for company registration?
Typical documents include PAN, address proof, promoter ID proof, office address proof, bank details, and constitutional documents such as MoA, AoA, or LLP agreement.
4. Can Amazon FBA be done online?
Yes, seller onboarding, GST updates, MCA incorporation filings, and FSSAI applications are all handled through online government or platform portals.
5. Do I need separate GSTINs for each state where Amazon stores my FBA inventory?
Yes. If Amazon’s FBA programme distributes your inventory across fulfilment centres in multiple states — which it typically does for pan-India delivery eligibility — you need a separate GST registration for each such state. Since you likely don’t have a physical office in those states, a Virtual Principal Place of Business (VPOB) service provides a valid registered address for GST purposes. Each state’s FBA warehouse is then added as an Additional Place of Business (APOB) under that state’s GSTIN.
