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Where Taxpayers and Advisers Meet

Dropshipping Business

Joined:Thu Dec 06, 2018 5:25 am
Dropshipping Business

Postby ajsingh » Thu Dec 06, 2018 5:38 am


I'm a UK non-resident who wants to register my B2C cross-border drop shipping online marketplace company in UK and have some queries on that.

Dropshipping business model: We publish products of various merchants from across the world on our marketplace/website. When a customer buys a particular product on our site, we place the order with the respective merchant and he ships the product directly to the consumer. We DO NOT maintain any inventories.


1. As a non-resident, what all things we have to take care of before registering our company in UK?
2. What all taxes are applicable?
3. We will NOT take liability of sales tax or customs in any country and it would be the responsibility of the customer/buyer as per his respective country's law. Are there any complications?
4. Our default currency of purchase will be USD across the world. Is there any complication or restriction that I should be aware of?
5. Applicable laws and guideline for the said business model.

Many thanks in advance.

Joined:Tue Dec 18, 2018 5:18 am

Re: Dropshipping Business

Postby mw01 » Mon Jan 07, 2019 5:49 am

Hello ajsingh, where are you a tax resident?

The reason I ask, you may find it suitable to use a LLP instead of an LTD. That is, if your personal tax rate is lower than 18% (the eventual UK corporate tax rate), you may want to use a UK LLP between yourself and your partner, where the profits aren't taxed in UK (as long as it is not resident), instead you pay local tax in your country of residence.

I know 2 colleagues who do exactly this, one in Montenegro ( , the other in Andorra (

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