To sell skincare you need a legal business, the tax registrations for where you sell, and an importer for the goods. In the US that usually means an LLC or corporation, a free EIN from the IRS, sales tax permits in states where you pass economic nexus thresholds, and an importer of record with a customs bond (CBP Form 5106 sets up the importer number). In the UK it is a Ltd company (GBP 100 online at Companies House as of October 2026), VAT registration (GBP 90,000 threshold for UK businesses, no threshold for overseas sellers) and a GB EORI. The EU needs an EU company or an EU importer, VAT (with OSS or IOSS for online sales) and an EORI; Canada needs a business number, GST/HST and an import-export account; Australia needs an ABN, GST once you reach A$75,000 and AICIS registration for importers of cosmetics.
What every skincare business needs
Whatever the country, a skincare brand that imports its products needs five things before the first shipment arrives:
- A legal entity. The company that signs the manufacturing order, owns the brand and trademark, licenses the barcodes and is named on the label or in the registrations.
- Tax registrations. A tax ID, plus sales tax, VAT or GST registrations where you sell.
- An importer. Someone who clears the goods through customs and pays duty and import tax: your own company or a local importer. This is the "importer of record".
- A regulatory role. The person legally responsible for the product in that market: the "responsible person" under MoCRA in the US, the Responsible Person in the EU and UK, the manufacturer or importer in Canada. It can be your company or a service provider. See the market guides linked in each section.
- A bank account and insurance. A business bank account that can send international wires, and product liability insurance (see product liability insurance for skincare).
You do not need any of these to request quotes or order samples. You need the company before you sign a production order, and the import setup before the goods ship.
Do you need a company in the country you sell?
Not always. There are three common models:
| Model | How it works | Good for | Watch out for |
|---|---|---|---|
| Your own company in the market | You form a company where you sell; it imports, holds stock and sells | Founders who live there; brands selling mainly in one country | Company admin and tax filings every year |
| Your home company sells cross-border | Your company abroad is the importer or sells to consumers from stock in the market (for example in an FBA or 3PL warehouse) | Online brands testing a second country | Some countries require a local resident agent, tax representative or responsible person; overseas sellers often have no VAT threshold |
| A local importer or distributor | A local company buys from you and imports; you sell business to business | Retail and wholesale in markets you will not run yourself | Lower margin; the importer often controls the registrations |
United States
- Choose a business structure
The SBA lists the common options: a sole proprietorship (no separate entity, so no liability shield), an LLC (limited liability company: owners are protected from business debts in most cases and profits can pass through to their personal taxes) and a corporation (a C corp is taxed separately; investors usually expect one). Most skincare founders start with an LLC. If you plan to raise investment, ask an accountant about a corporation from the start.
- Form the company in a state
File with the Secretary of State of your chosen state and appoint a registered agent there (a person or company that accepts legal papers). If you live in the US, forming in the state where you operate is usually simplest, because a company formed in another state normally also has to register there as a "foreign" company. Non-US founders often form in Delaware or Wyoming. State fees and annual reports vary by state.
- Get an EIN from the IRS
An Employer Identification Number is your federal tax ID, needed for a bank account, sales tax permits and customs. It is free; the IRS warns against websites that charge for it. US-based applicants apply online and get it immediately. If your principal place of business is outside the US, you cannot use the online tool: call the IRS international line at 267-941-1099 (not toll-free), or send Form SS-4 by fax or mail. A US LLC owned by a non-US person has extra IRS reporting (Form 5472 with a pro forma Form 1120), with penalties from USD 25,000 per form for missing it, so involve an accountant early.
- Register for sales tax where you have nexus
US sales tax is set by each state. You must collect it in a state where you have "nexus": a physical presence (an office, staff, or inventory in a warehouse, including Amazon's), or economic nexus, which since the 2018 Wayfair Supreme Court decision every state with a sales tax applies to remote sellers. Most states set economic nexus at USD 100,000 of sales into the state in a year; California, New York and Texas use USD 500,000. Five states have no statewide sales tax (Alaska, Delaware, Montana, New Hampshire and Oregon), though some Alaska cities do. Marketplace facilitator laws make Amazon, Walmart, TikTok Shop and similar platforms collect the tax on sales they process, but your own website sales are yours to handle. Apply for a sales tax permit with each state's revenue department before you collect.
- Use resale certificates for wholesale
When a shop buys from you to resell, it gives you a resale certificate so you do not charge it sales tax. Keep these on file for each wholesale account. Each state has its own form, and many accept the multistate certificates.
- Set up the importer of record
The importer of record (IOR) is the party responsible to CBP (US Customs and Border Protection) for the entry, duties and paperwork. CBP says even when you use a customs broker, you, the IOR, stay ultimately responsible. The importer number is your EIN; without one, you can request a CBP-assigned number. Every importer files CBP Form 5106 (Create/Update Importer Identity Form) with its first formal entry; your customs broker usually submits it. A foreign company that is not incorporated in the US must have a resident agent in the US to make entries (19 CFR 141.18).
- Get a customs bond
Formal entries (generally commercial shipments over USD 2,500) need a customs bond, a guarantee to CBP that duties and fees will be paid. A single-entry bond covers one shipment; a continuous bond covers a year of entries and is set at the greater of USD 50,000 or 10% of the duties, taxes and fees you paid in the last year. Your customs broker arranges it through a surety. A first sea shipment of a few thousand units is a formal entry.
- Know the 2025 and 2026 import changes
The USD 800 "de minimis" duty-free entry was suspended for goods from all countries from August 29, 2025, and CBP made the suspension indefinite in June 2026, so even small parcels now pay duty. An executive order of June 3, 2026 on customs enforcement (EO 14411) directs CBP to tighten importer of record rules over about 180 days: more identity data on Form 5106, minimum domestic assets or bonding, bonds on informal entries and limits on foreign importers of record. Ask your customs broker how this affects you before your first shipment, as of October 2026.
- Plan the FDA side
Cosmetics are not FDA-approved before sale, but imports are subject to FDA review at entry and can be refused. Under MoCRA the manufacturing facility must be registered with the FDA and the brand (the "responsible person") must list each product and keep safety substantiation, and the label must carry a US address, phone number or website for adverse event reports. See MoCRA registration and US MoCRA compliance.
- Check state and local licenses
Many cities and counties require a general business license, and some states have their own cosmetic rules, such as ingredient bans. See Prop 65 and state ingredient bans.
For duty rates and HS codes, see HS codes and duties and importing skincare from Korea.
United Kingdom
- Form a private limited company (Ltd)
Register online with Companies House: it costs GBP 100 (as of October 2026, after the February 2026 fee rise), is usually done within 24 hours, and directors and people with significant control must verify their identity first. Most companies are set up for Corporation Tax with HMRC at the same time. The name must usually end in Limited or Ltd (see brand name checks).
- Register for VAT at the right time
A UK-established business must register when its taxable turnover passes GBP 90,000 in the last 12 months, or is expected to in the next 30 days. A business based outside the UK has no threshold: it must register as soon as it supplies goods in the UK, for example by selling from UK stock. Standard-rated VAT applies to skincare.
- Know the GBP 135 rule for direct sales
For consignments of GBP 135 or less sent from outside the UK straight to consumers, VAT is charged at the point of sale instead of at import, by the seller or, for sales through an online marketplace, by the marketplace. Above GBP 135, normal import VAT and customs duty apply at the border.
- Get a GB EORI number
An Economic Operator Registration and Identification number is needed to move goods into Great Britain. It is free from HMRC. Generally your business must be established in the UK or have premises there; Northern Ireland moves have their own rules.
- Appoint a UK Responsible Person and notify products
Every cosmetic sold in Great Britain needs a UK-based Responsible Person and a notification on the Submit Cosmetic Product Notifications (SCPN) service before sale, plus a UK safety assessment. See UK cosmetics regulation and starting a skincare brand in the UK.
European Union
- Decide: EU company or EU importer
The EU Cosmetics Regulation requires a Responsible Person established in the EU for every product, and the importer is the Responsible Person by default unless it names another one. You can form a company in one EU country, work with an EU importer or distributor, or appoint an EU Responsible Person service while your own company imports. See EU cosmetics regulation and what a CPNP number is.
- Get an EORI number
An EU EORI is valid in every member state. An EU business applies in its home country; a business established outside the EU applies in the member state where it first lodges a customs declaration or other customs formality.
- Register for VAT
Each country has its own VAT. The EUR 10,000 EU-wide threshold for cross-border sales to consumers applies only to sellers established in a single EU country. A non-EU seller holding stock in an EU country registers for VAT there before selling.
- Use OSS or IOSS for online sales
The One Stop Shop lets you declare VAT for sales to consumers in other EU countries through one country's portal. The Union scheme covers distance sales of goods shipped from stock inside the EU. The Import scheme (IOSS) covers goods shipped from outside the EU directly to consumers in consignments of an intrinsic value up to EUR 150; a seller established outside the EU must appoint an EU-established representative to use it. OSS returns are quarterly; IOSS returns are monthly.
- Plan for the end of the EUR 150 duty exemption
From July 1, 2026, the customs duty exemption for consignments up to EUR 150 was removed by Council Regulation (EU) 2026/382. Until July 2028 a flat EUR 3 duty applies per item category (tariff heading) in such parcels, after which normal duty rates are planned for all values. Larger shipments to your own stock pay normal duty; see HS codes and duties.
Canada
- Get a business number
The business number (BN) is a nine-digit number from the CRA (Canada's tax authority) that ties together your tax and import accounts. Since October 21, 2024, most new resident commercial importers can get one through the CBSA's CARM Client Portal; non-residents get it from the CRA, using its non-resident registration form.
- Register for GST/HST
You must register once you are no longer a small supplier: more than CAD 30,000 of taxable sales over four consecutive calendar quarters, or in a single quarter. A non-resident must register if it carries on business in Canada and is not a small supplier, and without a permanent establishment in Canada it usually has to post security with the CRA. Some cross-border sellers of goods held in Canada, including through fulfillment warehouses, have extra registration duties under the digital economy rules: ask an accountant.
- Open an import-export program account (RM) and register in CARM
Commercial importers need an RM account linked to the business number, and must register in the CARM Client Portal, the CBSA's system for import accounting and payment. The name and address must match the CRA record and the customs documents. Register well before the first shipment.
- Notify Health Canada
Cosmetics need a Cosmetic Notification Form within 10 days after first sale in Canada, and labels must be bilingual. See Canada cosmetics regulation and starting a skincare brand in Canada.
Australia
- Get an ABN
An Australian Business Number from the Australian Business Register is free. Non-residents may be entitled to one if they carry on or start an enterprise in Australia, and can apply without an Australian tax file number by sending identity documents.
- Register for GST at A$75,000
You must register for GST within 21 days of your GST turnover reaching A$75,000 a year (current or projected); you need an ABN first. Overseas sellers of goods worth A$1,000 or less shipped directly to Australian consumers must register and charge GST at the point of sale once their Australian sales reach A$75,000, unless a marketplace collects it.
- Register with AICIS before you import
The Australian Industrial Chemicals Introduction Scheme regulates the chemicals in cosmetics. Any business that imports ready-made cosmetics for commercial purposes must register its business, whatever the quantity, and check that every ingredient is on the Australian Inventory of Industrial Chemicals (or meets another category). Registration runs from September 1 to August 31 and is renewed each year; the charge depends on the value of chemicals you introduce, and the lowest level (under A$50,000) is A$85 for 2026 to 2027.
- Clear customs
Commercial imports over A$1,000 need a full import declaration, usually lodged by a licensed customs broker, with GST paid at the border unless you are registered for deferred GST.
- Check product rules
Cosmetic labeling follows the ACCC's mandatory information standard, and most sunscreens are therapeutic goods regulated by the TGA. See Australia cosmetics regulation and starting a skincare brand in Australia.
India, the Gulf and other markets
- India: every importer needs an Importer Exporter Code (IEC) from the Directorate General of Foreign Trade (DGFT), applied for online and updated every year between April and June or it is deactivated. Imported cosmetics also need an import registration certificate from CDSCO, applied for by the Indian importer or the brand's authorized agent in India. See India cosmetics regulation.
- UAE: the importer needs a UAE trade license with the right activity, cosmetics are registered per product with Dubai Municipality through its Montaji system by a UAE-licensed company, and customs clearance needs a conformity certificate from the Ministry of Industry and Advanced Technology. See UAE cosmetics regulation and K-beauty private label in Dubai.
- Saudi Arabia and the GCC: the importer needs a Saudi commercial registration, and products are listed with the SFDA (eCosma) before sale. See Saudi and GCC cosmetics regulation.
- Japan, China, Korea and ASEAN: a local license holder or responsible party is needed in almost every case. See Japan, China, Korea and ASEAN, or the one-page regulation by market table.
When do you need an import license?
Most big markets do not issue a special "cosmetics import license", but every one of them requires some registration before the goods move. This table shows what stands in for a license:
| Market | Special import license for cosmetics? | What you need instead |
|---|---|---|
| United States | No | Importer of record, importer number (EIN or CBP number via Form 5106), customs bond, MoCRA facility registration and product listing |
| United Kingdom | No | GB EORI, VAT where required, UK Responsible Person and SCPN notification |
| European Union | No | EU EORI, VAT or IOSS, EU Responsible Person and CPNP notification |
| Canada | No | Business number, RM account, CARM registration, Health Canada notification |
| Australia | No | ABN, AICIS business registration, GST where required |
| India | In effect, yes | IEC from DGFT and a CDSCO import registration certificate |
| UAE | In effect, yes | Trade license with the right activity and product registration with Dubai Municipality |
| Saudi Arabia | In effect, yes | Commercial registration and SFDA product listing |
Check with your importer, customs broker or the authority before you sell: requirements change, and some products (sunscreens, products with drug claims, alcohol-rich or aerosol products) follow stricter routes.
A worked example
- Paying a website to get an EIN, which the IRS issues free.
- Assuming an overseas seller can wait for the GBP 90,000 UK VAT threshold; overseas businesses have no threshold.
- Forgetting that inventory in an Amazon warehouse can create sales tax nexus in that state.
- Booking the first sea shipment before the importer of record, customs bond and Form 5106 are ready, so the goods sit at the port and storage charges add up.
- Using a DDP shipping quote to avoid all of this; someone still acts as importer, and for cosmetics you still need the regulatory roles in each market.
- Importing into Australia without AICIS registration, which has no minimum quantity.
- Forming a company in one country and filing the trademark and barcodes under a personal name or another company.
- Missing the yearly filings: US annual reports and Form 5472, UK confirmation statements, AICIS renewal by August 31, India's IEC update.
- Business model chosen for each market: own company, cross-border, or local importer.
- Company formed, with the same name used for the trademark, GS1 and bank account.
- Tax ID in place: EIN (US), Corporation Tax registration (UK), BN (Canada) or ABN (Australia).
- Sales tax, VAT or GST registration plan, with thresholds tracked monthly.
- Business bank account that can send international wires.
- Importer of record named for each market; customs broker hired.
- US: Form 5106, customs bond and resident agent (for a foreign company) ready before shipping.
- UK and EU: EORI numbers issued.
- Canada: RM account and CARM registration done.
- Australia: AICIS registration done and ingredients checked against the Inventory.
- Responsible Person, MoCRA listing or other regulatory roles arranged for each market.
- Product liability insurance quoted.
- Calendar of yearly filings and renewals set up.
How KoreanOEM helps
KoreanOEM is a Korean skincare OEM and private label manufacturer: we develop your formula and produce it in Korea. Every price is FOB Incheon, so your forwarder and customs broker take over from the port in Korea, and we prepare the export side.
- Export and customs documents: commercial invoice and packing list, COA, MSDS (SDS), specification, a Certificate of Origin for FTA duty rates, and Power of Attorney and Letter of Authorization drafts for your customs broker or importer. See export.
- US MoCRA: our production facility is FDA registered, and our team files the MoCRA product listing for USD 150 per SKU.
- EU and UK: through our partner, CPSR and PIF for USD 1,250 per formula (UK notification included), CPNP notification for USD 420 per product, and a Responsible Person from USD 240 per product per year (UK) or USD 335 (UK and EU).
- Canada: the Cosmetic Notification Form filed for about USD 450 per product. Other markets (Australia, Japan, ASEAN, GCC, India): we prepare the documents and the local importer or a partner files.
- A Certificate of Free Sale for markets that ask for one: USD 100 per certificate up to 10 products.
Frequently asked questions
Do I need an LLC to sell skincare in the US?
Can a foreigner get an EIN without a US address?
What is CBP Form 5106?
Do I need a customs bond to import skincare into the US?
What is the UK VAT threshold for a skincare business?
Do I need an EORI number to import cosmetics into the UK or EU?
Do I need AICIS registration to sell cosmetics in Australia?
Is there a special import license for cosmetics?
Sources
- SBA: Choose a business structure
- IRS: Get an employer identification number, Instructions for Form SS-4 and About Form 5472
- California CDTFA: use tax collection after the Wayfair decision and Sales Tax Institute: economic nexus state by state
- CBP: Tips for new importers and exporters and CBP Form 5106
- 19 CFR 141.18: entry by a nonresident corporation and 19 CFR 113.62: basic importation and entry bond
- Federal Register: indefinite suspension of the de minimis exemption (June 24, 2026) and Executive Order 14411, Strengthening Customs Enforcement
- FDA: Registration and listing of cosmetic product facilities and products and FDA: Cosmetics importers
- GOV.UK: Register your company, When to register for VAT, VAT and overseas goods sold directly to customers and Get an EORI number
- GOV.UK (OPSS): Making cosmetic products available in Great Britain
- European Commission: VAT One Stop Shop (Union, non-Union and Import schemes) and Regulation (EC) No 1223/2009, Article 4 (Responsible Person)
- PwC Germany: elimination of the EUR 150 duty-free allowance from July 1, 2026 (Council Regulation (EU) 2026/382) and Latvia State Revenue Service: EORI for businesses established outside the EU
- CRA: When to register for and start charging the GST/HST and CRA: business number for importing and exporting
- CBSA: register for or modify an import-export program account (CARM) and Health Canada: cosmetic notification
- ABR: ABN for businesses outside Australia and ATO: Registering for GST
- AICIS: I make or import cosmetics, do I need to register? and AICIS: how much my registration costs
- DGFT: Importer Exporter Code and Dubai Municipality: guidelines for consumer products import and re-export
Checked against these sources in October 2026. Rules and fees change; check with the authority or your importer before you sell.