Questions & Answers
Setting up an online drop shipping business
Hello,
I want to start a drop shipping business (expecting to make less than a thousand Jordanian Dinar a year).
Basically, drop shipping is selling a product on an online store without owning the product or having to keep inventory. When I get a sale I go and buy it from Ali Express (which is a website full of suppliers from China) and I ship the product to a customer address (in United States) and earn the difference in money.
So my question is: In Jordan do I have to pay taxes and do I need to register a company because I am making a profit, and is there a limit that I should be making before setting up a company? And what happens if I continue without setting up a company?
Thank you for your time.
Kindly note that it depends on the amounts and quantities you will ship to Jordan and how often you sell things.
However, it is preferable to register a company in order to protect yourself in case a dispute arises with any of the clients, as if there is no existence for the activity, therefore, it might be considered a fraud. Plus it is better if you declare about you commercial activity from the beginning which will reduce the taxes.
Regards.
