A Complete Guide to Setting Up Your Business for Global TikTok Commerce
TikTok is no longer just a social media platform—it’s evolving into a global commerce powerhouse through TikTok Shop.
From the U.S. and U.K. to Southeast Asia and Korea, TikTok Shop enables merchants to sell products, run live promotions, manage payments, and reach global customers—all on one platform.
But here’s the big question for business owners:
What type of legal entity do you need to connect with TikTok Shop?
This blog will walk you through the most important factors: required entity types by region, payment gateway (PG) compatibility, tax risks, and practical business structures.
✅ Key Considerations Before Connecting to TikTok Shop
When selecting an entity to integrate with TikTok Shop, consider the following:
Factor | Description |
Target Market | Countries where TikTok Shop is officially supported |
PG Compatibility | Ability to link Stripe, Payoneer, Checkout.com, etc. |
Local Entity Requirements | Whether local business registration is mandatory |
Tax Compliance | Withholding tax, VAT, and PE (Permanent Establishment) risks |
Fulfillment Integration | Warehousing and logistics support in the target region |
🌍 Countries Currently Supported by TikTok Shop
As of today, TikTok Shop operates in the following countries:
- United States, United Kingdom
- Singapore, Malaysia, Indonesia, Thailand, Vietnam, Philippines
- South Korea (limited seller participation, expansion expected)
🔍 Entity Requirements & PG Support by Region
1. United States TikTok Shop
- Local entity required (EIN number needed)
- Stripe/Payoneer account required with U.S. bank account
- Recommended setup: U.S. LLC or Hong Kong/Singapore entity + U.S. PG connection
2. United Kingdom TikTok Shop
- UK or EU-based entity and VAT registration required
- Must link to a UK bank account for payouts
- Recommended setup: Hong Kong/Singapore entity + UK-based PG
3. Southeast Asia (e.g., Malaysia, Indonesia, Philippines)
- Local entity often required for onboarding
- Some regions allow cross-border selling via official TikTok partners
- Recommended setup: Local incorporation or Hong Kong entity + cross-border PG + 3PL support
✅ Why Do Many Sellers Use a Hong Kong Entity?
Feature | Advantage |
PG Integration | Easy to link with Stripe, Payoneer, WorldFirst |
Multi-currency | Supports USD, HKD, and other currencies |
Tax Structure | Offshore income may be exempt from corporate tax via an Offshore Claim |
Fast Setup | Incorporation in as little as 5 business days |
Digital Accounts | Connect with ZotaPay, Airwallex, Statrys, etc. |
💡 No U.S. or SEA entity?
Start with a Hong Kong entity + digital PG account + international fulfillment for a fast and scalable solution.
📦 Don’t Forget Fulfillment!
TikTok Shop offers native fulfillment services, or you can connect with external 3PL providers.
Hong Kong, Singapore, and Dubai-based entities can easily link with global logistics partners for warehousing, returns, and customer service.
✅ Recommended Entity Structures by Strategy
Strategy | Best Entity Type | Why? |
Fast PG setup, tax efficiency | Most popular choice for TikTok Shop sellers | |
Targeting SEA region | Easy logistics access and reliable PG setup | |
Expanding into MENA/EU | Tax benefits, no foreign exchange restrictions, asset protection |
✍️ Final Thoughts: TikTok Shop Success Starts with the Right Entity
TikTok Shop presents massive growth opportunities for global e-commerce players.
But the wrong entity setup could lead to delays in payouts, platform account issues, and serious tax risks.
Premia TNC offers:
- Entity formation in Hong Kong, Singapore, and Dubai
- Digital banking and PG integration
- TikTok Shop onboarding and business structuring
- International tax compliance and risk management