I am an Indian citizen, and want to start dropshipping to US, via Aliexpress. I have some confusions regarding the legalities of starting up like: where should I register my Proprietorship- in US, or in India ? Where do I have to pay taxes- the US, or India ? Which local and national authorities should I inform about this store? Which bank accounts should I use to run Facebook ads- my personal, or the one registered with proprietorship ? Are there any other things I should know about? Should I take professional advice regarding all this ?
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Nick here from Shopify. Really good questions here, all are very important to think about when starting an online store or any business in general.
If you are an Indian citizen and living in India, then I would say it would be best if you did everything through the Indian government. For example, if you set up and register your business in India, you would then need to pay taxes as if you were in India as they would go hand in hand. The same would apply for informing any national authorities.
Regarding which bank accounts to use for Facebook ads, I would suggest using the one registered with the business if you can. I'm not sure if that has any consequences if you were to use your personal account, but it might be easier for tax purposes to keep it all together.
In saying all of the above, the one thing I will advise you to do is to see a professional accountant or your local tax office about this. I am not completely familiar with how things are run in India or the USA. By talking to a professional in your area they would be able to inform you best about how to approach it all.
I hope this helps and answers your questions. If you have any others, let me know!
All the best, Nick
Thanks a lot for your reply. I was initially bent onto the idea of using professional help, but wanted someone who has knowledge of the field to let me know whether it would be a good idea to go for it. I am more clear now, and would now actively look for someone for the legalities of the business. Thanks again!!
No problem at all, glad it helped and it is more clear for you now. But yes I would definitely recommend seeing a professional, it put my mind at ease when looking into the business registration/ taxes side of my own store. It's the part of the business which you want to be sure about and a professional would really know best here.
It would really depend and not necessarily. If you were operating from the US then you would need a US address, but a phone number might not always be necessary. I would suggest talking to a local accountant or tax professional in your area to find out exactly what you need to do to have a legal business set up for your store. Each country and even specific regions within countries would have different laws for this which is why I would highly recommend speaking to someone who would know best in your locality.