The hottest topic among sellers lately has been Amazon’s new BSA regulations, which are set to take effect on August 24. Discussions about whether it’s still possible to change the business entity—or whether switching from mainland China to Hong Kong is still an option—appear in the group chats almost every day.

If you're torn between ”should I switch or not,” or if you've already decided to switch but aren't sure how to go about it—this article is for you.

No beating around the bush, no creating anxiety—just one thing:As of August 24, what exactly should you do?

There are many online guides about ”changing the account holder”—some tell you to do it right away, while others advise you not to make any changes. But very few put themselves in your shoes to help you make a rational decision.

In today's post, let's go over everything from the beginning.

⚠️ Disclaimer: This article applies only to sellers with legitimate business needs and where there is a genuine relationship between the new and existing entities. If you’re simply looking to ”change your business structure to save on taxes,” we recommend closing this article immediately.

If you’re facing challenges related to a change in legal entity or are unsure whether your company’s structure complies with regulations—feel free to scan the QR code to consult a Qicaiying compliance advisor and receive a free assessment.

Add me on WeChat: qcygscszk

01 Let's do the math first::Do you really need to replace it?

Before you begin, ask yourself this question:

Do the returns from switching investment vehicles cover the risks and costs?

If your sole purpose is to save a little on capital gains tax, but there is no affiliation between the new and old entities—I suggest you give up on this idea. The risks far outweigh the benefits.

02 Countdown Timeline (Recommended for Bookmarks)

If you decide to submit a change request by August 24, we recommend following this timeline:

Days 1–3 (Data Preparation Phase)

• Identify the relationships between the new and existing entities (equity, family ties, mergers and acquisitions)
• Prepare a complete set of notarized and certified documents according to the list in Part II.
• Don’t just register a Hong Kong shell company at the last minute and rush into it.

Days 4–5 (Opening a Case and Filing a Report)

• Open a case through the Amazon Seller Central dashboard to explain the reason for the change to the platform.
• Submit preliminary information to obtain an officialRegistration ID
• Wait until you have received the registration ID before proceeding; do not act first and ask for permission later.

Days 6–7 (Official Submission + Waiting)

• Submit a complete set of materials in accordance with the Case guidelines
• Keep your backend systems and email accessible, and be prepared to submit additional materials.
• The review process takes 3–6 weeks; be prepared for that.

03 The Entire Back-End Process (Key Points)

Step 1: Open a case to file a report (the most important step)

Path: Seller Dashboard → Help → Contact Us → Select a topic related to ”Account Settings”

Script Templates (We recommend copying and modifying them directly):

“Due to [insert valid reason, e.g., internal group restructuring/corporate merger or acquisition/business reorganization], our company plans to change the registered entity for the store from [Company A] to [Company B]. There is a [specify the relationship, e.g., parent-subsidiary holding structure/equity acquisition] between the old and new entities. We are hereby applying to the platform for written approval of this entity change and have attached the relevant supporting documents. Please review this request.”

Step 2: Wait for a response from the platform

The platform will ask you to submit specific documents.Submit all required items at once according to the checklist...Don’t submit updates bit by bit—it will prolong the review process.

Step 3: Tax Integration (Special Note for the European Site)

• European station: The old VAT number must be canceled first, and then the new entity must register for a new VAT number—The order must not be changed.
• United States station: Confirm that the EIN/tax ID for the new entity has been applied for
• Entity information in the backend of payment collection tools (PingPong, Payoneer, etc.)Synchronize Changes

Step 4: Connecting the Funding Side

• Confirm that the new entity's bank account has been activated and is able to receive payments normally
• Do not modify the receiving account while the change is in progress....will trigger risk control measures

04 At this point(math.) genusYou're probably already at your wit's end.

How do I write the script for opening a case? Is there anything missing from the list of required documents? Which comes first—VAT deregistration or registration? When should I change my payment account so as not to trigger risk controls?

The answer to each of these questions is crucial to the security of your store.

Enterprise Finance GroupA team of compliance experts has already helpedHundreds of Amazon sellersComplete the corporate restructuring and the transition to financial and tax compliance.

We don’t offer ”cookie-cutter services”; instead, weWe’ll tailor a solution specifically for you based on your actual business operations and corporate structure.. 👇 Scan the QR code to add a Qicaiying consultant:

📱 WeChat: qcygscszk
📞 Phone: 18676749275

05 ”Survival” Strategies During the Review Period

After submitting a change request, your store will not be suspended immediately, but please note the following:

1. How should inventory be handled?

Sales may be suspended during the review period. Recommendations:

• Ensure you have 1–2 months' worth of inventory on hand before the audit.
• If there is a large amount of inventory in FBA, estimate the costs of transferring the inventory after a review failure

2. How should we run ads?

• Recommendations During the Review PeriodSuspend or significantly reduce advertising budgets
• Avoid spending heavily on ads when your store's performance is unstable.

3. What should I do if my payment is withheld?

• Payments received during the transition period may be held by the platform.
• Set aside a cash flow buffer of 3 to 6 months
• Don’t Use Receivables as Collateral to Borrow Money—New Regulations Explicitly Prohibit This

06 Risk Self-Assessment Checklist (We recommend checking each item)

Before deciding to make a change, please answer the following questions honestly:

If the answer to any of the above questions is ”No,” we recommend postponing the change.

07 An ”Ultimatum” from Three Types of Sellers”

Category 1: Sellers who operate in compliance with regulations and have a clean track record → No action is required.The

The new regulations will not have a negative impact on you.

Category 2: Sellers with legitimate reasons for making changes and genuine business relationships → Follow the SOP outlined in this documentThe

Follow official channels and submit a compliant application.

Category 3: Sellers who have purchased accounts, acted as proxy holders, or pledged receivables → This is not a problem that can be solved by ”changing the entity.”The

We recommend that you consult a professional compliance advisor immediately to assess the risks.

If you’re struggling with a change in legal entity or aren’t sure whether your company’s structure complies with regulations—don’t try to handle it on your own.

Enterprise Finance Group

Founded in 2015 and headquartered in Shenzhen, Qicaiying Group is a leading provider of corporate services and tax compliance solutions in China.

The Group is deeply committed to providing services across the entire corporate lifecycle. Its core business areas include: business registration, bookkeeping services, tax compliance, overseas company registration (Hong Kong, the U.S., Singapore, Mexico, etc.), cross-border structuring, outbound direct investment (ODI) filing, overseas tax planning, bank account opening assistance, and identity planning.

Over the past decade, Qicaiying has served more than 10,000 corporate clients and has accumulated solid practical experience in key areas such as corporate structuring in Hong Kong and overseas, cross-border tax and financial compliance, and corporate accounting management. The Group boasts a team of seasoned financial and tax advisors who closely monitor changes in domestic and international tax systems and regulatory trends, providing clients with one-stop solutions ranging from structural planning to implementation.