Do I Need a Business License to Buy from Alibaba?

No, you don’t need a business license to buy anything from any Alibaba seller. As a matter of fact, you don’t even need to own a business for you to buy items on this marketplace. On the same note, a business license is not required to import Alibaba products to the US.

While this is the case, some states may require you to pay sales tax on the Alibaba merchandise you imported. To avoid such inconveniences, you should consider getting a resale certificate from your Alibaba supplier, as well as a state business license—from the relevant authorities.

Get to know how you can register an account and buy items on Alibaba without a business license.

Do I Need to Have a Business License to Buy from Alibaba?

Alibaba recommends that buyers on the platform register as legitimate businesses or companies. However, this is not necessary—sellers on the platform do not mind whether you own a business or not. Most of them won’t even cross-check to see whether you own a registered and, or licensed business.

Only sellers on this marketplace are required to register using their company/business details and prove their legitimacy—for obvious reasons. As a buyer on Alibaba, you only need to register a buyer account by filling in the basic information.

Once registered, you can easily search for, compare, and buy any item on the platform.

Can I Register and Buy Items from Alibaba as an Individual?

Yes, Alibaba allows individuals as well as businesses to create a “Buyer” account and purchase items from any of the registered suppliers on the platform. Despite being a business-to-business (B2B) marketplace, Alibaba suppliers have been known to sell to individual buyers.

Whether you are sourcing products to sell on your eCommerce store or just wish to buy items for personal consumption, Alibaba allows you to buy as an individual. Some suppliers even support lower order quantities. This makes the platform ideal for entrepreneurs looking for the right dropshipping suppliers.

Do I Need to Form a Company to Buy from Alibaba?

As you may have noticed, creating a “buyer” account on Alibaba requires you to fill in such details as your company name, email address, and website. Despite this requirement, owning a business not prerequisite for individuals to register an account on Alibaba.

That being the case, you don’t need to form a company for you to buy from Alibaba. According to Alibaba customer support, you should just provide your full name when required to enter a business number during the registration process.

How Do I Register an Account and Buy from Alibaba without a Business License?

While you can search for items and suppliers on Alibaba without an account, you need to sign up if you wish to buy through the platform. To create an account on Alibaba, launch your preferred browser then navigate to the Alibaba homepage.

Next, click on the blue “Join Free” link towards the top-right corner of the page as illustrated below:

Now enter your email address then drag the slider all the way to the right to verify the email address you provided.

Check your inbox for a four-digit verification code sent to you by Alibaba. Enter this code into the “Verification” field on the Alibaba registration page. Once done, click on the red “Next” button to verify the email address as shown below

Once your email has been verified, you will be redirected to the “Information” page. Fill in all the fields with accurate information. Since you do not own a business, enter you full name under the “Company name” field.

Having provided all the required information, click on the orange “Confirm” button at the bottom of the page. You are now registered and ready to buy from any seller on the platform, regardless of whether you own a business.

Note: if you are registering through the Alibaba mobile application, select the “I don’t have a company” option. You should then proceed to indicate your business type instead, as illustrated below:

Do I Need an Import License to Buy from Alibaba?

No, you won’t be required to have an import license to buy from Alibaba either. As a matter of fact, you are not required to provide any credentials for you to buy products on the platform. Think of Alibaba a global marketplace that brings together buyers and sellers across the globe.

That said, none of the buyers on the platform will require you to produce such documentation as an import license.

What Documentation Do I Actually Need to Buy from Alibaba?

In most cases, you don’t need to have any document to search for and buy products from any supplier on Alibaba. However, there are instances when getting a wholesale license—a document that legally allows you to buy from a supplier/ manufacturer in bulk and resell the items—makes sense. 

Why Should You Apply for a Wholesale License?

Well, having a wholesale license when sourcing through Alibaba can help reduce your taxes significantly. When buying items in bulk from an Alibaba supplier, this license ensures that you are not charged any sales tax when importing the merchandise to your country.

Without this document, you may be required to pay sales tax for each Alibaba supplier you purchase from. 

Where Can I Get a Wholesale License? 

You can get this license from the relevant government agency in your country. For instance, you can get it from the US Customs in the US. While applying for a wholesale license, most states require that you provide such details as your:

·         Full name and those of your business partners, if any

·         DBA (doing business as; the public-facing title of your business)

·         EIN or FTID

·         Nature of your business

·         eCommerce business license and/ or insurance 

Conclusion

Alibaba is one of the largest directories of reliable suppliers and manufacturing partners. Whether you are a dropshipper or an individual buyer, you don’t have to own a business to buy from this marketplace. Actually, you do not need any documentation to make a purchase on Alibaba.You only need to register a “Buyer” account on the platform. While registering, enter your full name under the “Company name” field. If for some reason you still cannot register on the site, you can still buy from Alibaba through a credible sourcing and fulfilment agent.