Letter of authorisation.
I have just formed my limited company.
Where can find an example of a template for this thanks.
Letter of authorisation.
Add letterhead of the company
POWER TO ACT ON BEHALF OF THE COMPANY
The undersigned add name of Company here (herein after, the “Company”), duly represented by add full name and function of the signatory here, confirms that add full name here is authorised to open a Selling on Amazon payment account with Amazon Payments, accept the User Agreement and other Policies, have access to the Selling on Amazon payment account and initiate transactions in the name and on behalf of the Company.
OP. It’s not my intention to complicate this, but I remember your last post a few days ago and I see you have updated that post to say, that you have formed a ltd company and registered for VAT,
“Just opened a company along VAT registration.
I know the VAT is only when you hit £85k onwards I just wanted to get it done.”
I have very very little knowledge of VAT, and others may correct me, but unless you are nearing that threshold, I would not have registered for VAT just yet. It an absolute minefield and I would suspect you really need to know what you are doing with regards to it.
Just trying to help
completely agree with @Kevanden - your post the other day just said you needed to register a business - why complicate things with LTD and VAT - you only had a turnover of a little over £1000 - why not just register as a sole trader ?
Thanks I have indeed formed my company now.
I haven’t yet registered for VAT as of yet.
But I want to do wholesale mostly.
All the companies, suppliers were not taking me seriously unless I had a company VAT and so on.
In regards to the authorisation letter that is the last but Amazon now wants from me.
Hopefully it will be, but don’t bank on it. Good luck
Thanks for the reply.
That was the exact advice I needed that day.
But as I want to do wholesale best practice is to have a company with VAT website phone number. And a business address that represents you as a real business.
I approached many suppliers as sole trader or just private individual they got back to me.
Also with Amazon you can quickly hut the £85k
Correct me if I am wrong.
its completely up to you what you want to do - experience from us on here though is that you are complicating things
You can still have a website and phone number as a sole trader and the business address is the same whether you are a sole trader or LTD as it should be your business address whether that be your home or a commercial premises.
Registering for VAT just means that you now have extra costs incurred in selling which you probably wouldn’t have had yet and also means extra paperwork doing a quarterly VAT return
With regards to being able to quickly reach £85k on Amazon per year - that depends on whether or not they quickly accept your new company status or leave you hanging for months in verification
It’s not so much about being right or wrong, it’s what works for you. It’s seems you are placing a lot of faith in reaching the 85K threshold quickly, by selling on Amazon - don’t be so sure about that, particularly in the short to medium term - I do hope you have not paid too much attention to the get rich quick videos on U-Tube. It’s going to take time and a lot of hard work
I am a LTD company, and have been from the outset, but for various reasons that works for me, but has nothing to do with being able to source products more easily.
In any case, it seems you have already formed your company and began the change of legal entity with Amazon, so I wish you well
Thanks I hope it all works out in the end.
Yes I have realistic expectations. And hard work and dedication is definitely on the agenda.
Unfortunately we aren’t questioning your hard work and dedication - we’re questioning how quickly Amazon will verify your newly LTD account - please keep us updated though as it is good for other sellers to see how long processes are currently taking on Amazon
I hope not to long but I will keep you updated.
please do and good luck
I disagree with what others have said about not registering for vat, however I totally agree with them that it is a minefield. Registering for VAT can be a very good thing for some businesses, a total unnneccessary pain for others. Your best bet is to speak to your accountant, laying out fully your expectations for your company, its turnover, expenses etc, and then make a considered and informed decision.
I would agree with your comments, @Isabella. It’s horses for courses, and the OP should speak to his/her accountant before deciding.
We registered for VAT at the outset and have never regretted doing so. It avoided having to hike our prices by 20% further down the line, and of course there were other benefits for us. But the OP might feel differently.
You have not earned enough to need VAT registered. Once you register VAT you have to do a VAT return and your price has to go up or your margin becomes smaller.
fully agree - horses for courses - obviously if you sell a zero rated product, you are much better off registering as you tend to actually receive money from HMRC rather than owing it
My thoughts with this particular OP though is that it is a newly formed business planning on making his living on Amazon. He has already had notification that he has entered the wrong business entity to start with (he registered as a private individual) and has now registered as a Ltd company and for VAT
I was just pointing out that as he has now changed to Ltd, reading other threads on here recently, changing to Ltd has caused no end of problems to people, including massive delays in re-verification and therefore op has registered for VAT when he probably can’t even sell anything for the next few months
hopefully, for the sake of the op, i am wrong
If you don’t have your VAT number, Amazon will shut you down some day when you sleep. They don’t have to explain it to you in advance. This is the risk I can’t bear so I got my VAT number in all E.U. countries even before my 1st sale.
BTW, 1 year registration & return is on Amazon. So, why not?
Totally depends what you’re selling and how saturated the market is on those products. You can lose the ability to sell anything that you’re listed on even easier!! As previous comments have mentioned, it takes time and an awful lot of hard work to get close to 85k. I second and third previous advice, and that don’t even consider it until you’re close to the threshold. Until then it’s a waste of time and money imo
I would add that if you have a limited company, you would need to have a business bank acc too. Hitting the 85k quickly is more unlikely than likely.
Firstly people don’t tell you that your products would never come up in searches even on the last page. For it to start to come up you need sales, which you can’t get unless you come up. So have money set aside for PPC too.