should i register a logistics company

[Amethyst]

I am planning to start a business to do storage & distribution for some e-commerce business sellers. What I want to do is to rent a space, receive bulk goods from these sellers, store and distribute small parcels to buyers. Should I register as a logistics company in UK?

If register as a logistics company, can I receive goods as the importer in UK? If not, what can i do then?

Is it good for me to register vAT in such case? What VAT rate should I pay for getting those goods imported if I register VAT which might be differrent from standard VAT rate?

Thank you.

 

[KWilding]

Hi Amethyst,

Are you based in the UK already.

If not, you could appoint an agent to be your fiscal representative in the UK
taking care of your Imports, payment of VAT, storage & distribution and VAT returns.

If not and you will be performing the storage, you will also need to consider commercial insurance as an important aspect of your busienss for the goods you store as well as goods in transit / commercial cargo insurance to cover them while being delivered.

Kevin

 

[Amethyst]

Hi, Kevin,

Thanks for your previous comments.

Yes, I am based in UK now. I have business connections mainly from China, and they will be my customers actully. I am thinking I may need to register a logistics company, but I heard a logictics company can't do import. So my question is:

1. how the import from China to UK can be made if I register as a logistics company?

2. i dont suppose i will make a big profit, so this will be just a small business. Is it worthwhile for me to register VAT? If I am VAT registered(for example it seems rate for storage company is 10%), should I pay 10% or 20%(suppose goods are all in standard rate) to import those goods? Can I reclaim these VAT back if I pay them on behalf of the exporters in China?

Thank you

 

[KWilding]

Hi Amethyst,

If the people / companies you are importing for are your customers,i would set your business up as the importer.

You can then import the goods, clear customs, pay any Duty / VAT and have
goods delivered to your own warehouse for storage, many importers already
operate this business model.

They would then distribute the product(s) once sold to their own customers.

I you are the importer, and you are VAT registered, you will be issued a C79 by customs which you can use to reclaim the VAT paid.

VAT payable on imports is 20%, and Duty is payable at a % of the value of an individual product based on the customs tariff heading.

Hope the above helps.

Kevin

 

[fazz]

hello Mr Amethyst

well in regards to your questions

A) No you do not need to register a logistics company

B) As i understand it you will be acting as a middle man for the Chinese companies, in this respect please note that when importing goods from China you will have to pay VAT at a standard 20% and Duty before you can receive your goods this is very important, if you have more detailed questions on this please contact a good Agent

C) To import anything you will need to be registered first for more details on this please contact a good Agent

 

[Amethyst]

Thanks to all of you. I may need to investigate more before moving on. Thanks.

 

[GGV Cargo]

I am planning to start a business to do storage & distribution for some e-commerce business sellers. What I want to do is to rent a space, receive bulk goods from these sellers, store and distribute small parcels to buyers. Should I register as a logistics company in UK?

If register as a logistics company, can I receive goods as the importer in UK? If not, what can i do then?

Is it good for me to register vAT in such case? What VAT rate should I pay for getting those goods imported if I register VAT which might be differrent from standard VAT rate?

Thank you.

I appreciate your courage to start from some where. i don't know much about the Cargo and freight forwarding operations in the U.K, but i think you can contact U.k Cargo handling department (if any) for further inquiries.

Incase you decide to include international cargo and freight forwarding as part of your operation, we will be glad to doing Business with you.. Permit to state here that Nigeria export from the U.K is on the increase on a daily basis. Hope you will find this information useful at this time.

thanks,
tayo George
Pre-shipment consultant
Geokaz Global Ventures (Cargo and Freight Forwarding expert)