Legal Requirements & Customs
Essential legal information for importing, exporting, and operating your business
Business Registration
United States
Business Structure: Choose between LLC, Corporation, Sole Proprietorship, or Partnership. Each has different legal and tax implications.
Business License: Most states require a general business license. Check your local and state requirements.
EIN (Employer Identification Number): Required if you plan to hire employees or open a business bank account. Free to obtain from the IRS.
DBA (Doing Business As): If operating under a name different from your legal business name, you may need to file a DBA.
European Union
Business Structure: Common structures include Limited Liability Company (GmbH in Germany, Ltd in UK, SARL in France), Public Limited Company (AG/PLC), or Sole Trader. Requirements vary by EU member state.
Company Registration: Register with your country's business registry (e.g., Companies House in UK, Handelsregister in Germany, Registre du Commerce in France).
VAT Registration: Required if annual turnover exceeds thresholds (typically €85,000 in most EU countries, varies by country). Register for VAT with your national tax authority.
EORI Number: Economic Operators Registration and Identification number required for all EU import/export activities. Obtain from your national customs authority.
Business Name Protection: Check name availability and register your business name with the relevant national authority to protect it.
Import/Export Requirements
United States
Import Requirements
- Customs Bond: Required for imports over $2,500. Can be single-entry or continuous.
- Harmonized System (HS) Code: Classify your products correctly for customs.
- FDA Registration: Required for food, cosmetics, medical devices, and certain other products.
- Country of Origin Labeling: Many products require country of origin labels.
Export Requirements
- Export License: May be required for certain products or destinations.
- Commercial Invoice: Required documentation for all exports.
- Packing List: Detailed list of all items in shipment.
- Certificate of Origin: May be required by destination country.
European Union
Import Requirements (Non-EU to EU)
- EORI Number: Required for all import/export activities within the EU.
- Customs Declaration: Submit import declaration through your national customs system (e.g., CDS in UK, ATLAS in Germany).
- VAT Payment: Pay import VAT (typically 19-27% depending on country) and customs duties at point of entry.
- CE Marking: Required for many products (electronics, toys, machinery, medical devices, etc.) to show compliance with EU safety standards.
- Product-Specific Regulations: Food products require EU food safety compliance; cosmetics need CPNP notification; textiles require fiber composition labeling.
- Customs Value Declaration: Declare accurate value for customs duty calculation.
Intra-EU Trade
- No Customs Duties: Goods moving between EU member states are generally free of customs duties.
- VAT: Apply VAT rules of destination country (or origin country for distance sales under thresholds).
- Intrastat: Report intra-EU trade if annual thresholds are exceeded (varies by country, typically €200,000-€700,000).
Export Requirements (EU to Non-EU)
- Export Declaration: Submit export declaration through national customs system.
- Commercial Invoice: Required with accurate product descriptions and values.
- Packing List: Detailed list of all items in shipment.
- Certificate of Origin: May be required by destination country for preferential tariff treatment.
- Export Licenses: Required for certain controlled goods (dual-use items, military equipment, etc.).
Product Compliance
United States
FDA Regulations: Food, drugs, cosmetics, and medical devices must comply with FDA regulations.
CPSC Requirements: Consumer products must meet safety standards set by the Consumer Product Safety Commission.
FTC Labeling: Products must have accurate labeling and comply with truth-in-advertising laws.
Organic Certification: If claiming organic, products must be certified by USDA or equivalent.
European Union
CE Marking: Required for many products (electronics, toys, machinery, medical devices, personal protective equipment, etc.) to show compliance with EU safety, health, and environmental protection standards.
REACH Regulation: Registration, Evaluation, Authorisation and Restriction of Chemicals. Applies to chemicals, cosmetics, textiles, and many consumer products.
RoHS Directive: Restriction of Hazardous Substances in electrical and electronic equipment.
Food Safety (EFSA): Food products must comply with EU food safety regulations and labeling requirements (allergen labeling, nutrition information, etc.).
Cosmetics Regulation: All cosmetics must be notified in the CPNP (Cosmetic Products Notification Portal) before being placed on the EU market.
Textile Labeling: Textile products must show fiber composition, care instructions, and country of origin in the language of the member state.
Organic Certification: EU organic logo requires certification by an approved control body according to EU organic farming regulations.
GDPR Compliance: If collecting personal data (e.g., customer information), must comply with General Data Protection Regulation.
Tax Requirements
United States
Sales Tax: Most states require collection of sales tax on products sold. Register for a sales tax permit in your state.
Income Tax: Business income must be reported on your tax return. Consider quarterly estimated tax payments.
Import Duties: Customs duties are assessed on imported goods. Rates vary by product and country of origin.
Record Keeping: Maintain detailed records of all transactions, expenses, and inventory for tax purposes.
European Union
VAT (Value Added Tax): Required registration if annual turnover exceeds thresholds (typically €85,000 in most EU countries, varies by country). VAT rates vary by country (typically 19-27% for standard rate). Must charge VAT on sales and file regular VAT returns.
VAT on Imports: Pay import VAT when goods enter the EU. Can be reclaimed if you're VAT registered. Consider using postponed VAT accounting to improve cash flow.
Intra-EU VAT: For sales to other EU countries, apply destination country VAT rules. Distance sales thresholds apply (typically €10,000-€35,000 depending on country).
Corporate Tax: Business profits subject to corporate income tax (rates vary by country, typically 15-25%).
Customs Duties: Pay customs duties on imports from non-EU countries. Rates vary by product and origin country. Check EU's Common Customs Tariff.
Record Keeping: Maintain detailed records of all transactions, VAT invoices, and inventory. Most countries require 7-10 years of record retention.
Digital Services Tax: Some EU countries have digital services taxes. Check if applicable to your business model.
Important Resources
United States
European Union
EU business portal and regulations
VAT, customs, and import/export information
Product compliance and CE marking requirements
REACH regulation and chemical compliance
Note: Also check your specific EU member state's national business registry, tax authority, and customs office websites for country-specific requirements.
Disclaimer: This information is for general guidance only and does not constitute legal advice. Requirements vary by location, product type, and business structure. Consult with a qualified attorney or tax professional for advice specific to your situation.