You have made plans to import-export the products or services to foreign countries, but for this, you are required to have the right strategy so that your business is fruitful. This requires upstream preparation work, but also the choice of appropriate legal status. Here are some useful tips from the MyXBorder team - specialists in delivery from Flipkart to the USA.
Let’s
know some basics:
Import-Export Company
A company that acquires products
from foreign countries, is doing the import. When it sells national products
abroad, it is then exported. Import-export is therefore the commercial activity
related to import and export.
Before creating an import-export
company, it is essential to carry out a market study and ask yourself the right
questions.
Make The Complete
Business Plan For Your Import-Export Company
Before
creating any business, whether, in import-export or anything else, it is
imperative to draw up a business plan to start its activity on solid
foundations.
The
detailed documents on your project like the provisional balance sheet, the
financing plan, the cash budget, and the provisional income statement are some
of the needed documents. Market study becomes compulsory when you have to
represent yourself as credible in front of your partners like investors,
shareholders, or customers, especially internationally.
Regulatory Questions
To Ask Yourself Before Setting Up Your Import-Export Company
Once your business plan has been
established, you will need a little more thought before embarking on the
import-export adventure.
Ask
yourself the right questions:
●
What price? To know the price you will be required
to determine the cost of the product, custom duties, and VAT included. This
overall evaluation will help to define the selling price.
●
Which Incoterms (International Commercial Terms)
to choose?
●
What are the customs formalities?
●
How to obtain an intra-community VAT number? The
intra-community VAT number will be obtained from the business tax department.
●
Why ask for an EORI (Economic Operator
Registration and Identification) number?
●
What modes of transport to choose for the export
of goods?
●
Are there preferential agreements?
Before
starting your import-export activities, there are some of the elements that you
must keep in mind:
The Choice of Legal Status For
Your Import-Export Business
You are about to launch your
import-export business, all you have to do is opt for the most appropriate
legal status for your project.
What are the
requirements for choosing the legal status of your import-export business?
To choose
the legal status of your import-export company, several criteria must be taken
into account:
●
the tax system, corporation tax, or income tax
●
the liability of the partners, limited to the
amount of the contributions, or unlimited
●
the number of partners, one or more
●
and the share capital, fixed or variable.
So which
legal status to choose?
There are
three legal statuses from which you can choose according to your requirements:
SAS (simplified joint-stock
company), the micro-enterprise, the SA (public limited company), or the SARL
(limited liability company).
Import-Export Business
in Micro-Enterprise
It is actually possible to attain
an import-export business under the legal status of micro-enterprise, formerly
called self-enterprise.
In addition, the
micro-entrepreneur is not subjected to VAT, so it cannot charge VAT, nor can it
deduct the VAT paid on purchases, which is bad news for a business of
import-export.
Finally, in the context of the
micro-enterprise, the manager's personal assets are committed in the event of
financial hardship for the company.
Import-Export Business
As A Company
For all these reasons, it is, therefore, wiser to create your
import-export business as a company rather than as a micro-enterprise.
5 Reasons To Be Interested in India
India has long been the center of
global economic activity.
According to Angus Maddison's
research report for the OECD published in 2006, India was the richest country
on the planet at the beginning of our era for more than 10 centuries, which few
countries and continents could boast of.
Other countries, whether it be
Europe, France, America, etc. have always been fascinated by the riches of
India.
Trade with this great country has
lasted for centuries, offering great successes such as that of the East India
Company created in 1707.
In the era of globalization, many
SMEs could benefit from export development. However, the lack of information
and the sometimes too restrictive vision that you have of foreign countries
prevent a certain number of us from considering exporting as a possible
solution.
Some administrative structures have proposed to shed light on India, a country that can be a
leading economic partner for your company.
No doubt because you have to
start well, but also because given India's economic dynamism, history is likely
to repeat itself. India will return to the forefront of the world scene and
here are some of the reasons to believe it.
You have to get started, the
crisis shows that every day you are up to your necks in international trade so
why not take advantage of it to start exporting.
India A Global Economic
Force
After Europe, the United States,
and China, India is the fourth-largest economy in the world. The size of the
Indian market makes it naturally attractive to any company with expansion
plans.
A Young Indian Population
More than its huge population
(India has a population of 1.2 billion people, just behind China), it is above
all the youth of its population that characterizes it. Nearly 65% of the
population is aged 15 and 40 years old.
This asset, which no other major economic power in the world has, will
be a decisive growth factor in the years to come.
Sustained Growth For
Two Decades
India has grown by 8% over the
past 20 years, driven by international trade as well as an increase in domestic
trade (70% of Indian trade is within borders).
Many observers believe that the
economic catch-up should continue, ensuring India an annual growth of around 7%
in the coming years. The 5.5% growth rate observed during the 2012-2013 crisis
should be the lowest that India will experience, which will undoubtedly benefit
from the current return to growth in the United States and Europe.
A Sharp Rise in The
Middle Class
Although the poverty rate is
still high, it is constantly decreasing, leading to a significant increase in
life expectancy. Access to healthcare and the country's infrastructure is
constantly improving.
Moreover, the growing number of
Indians who wish to evolve socially and aspire to a better life is increasing
the Indian middle class which is ultimately the real secret of India's growth.
A Large Number of
Graduates
The education system in India is
known for its high quality, constantly attracting new American and European
universities for student exchange. This allows India to have the largest number
of English-speaking graduates in the world.
The abundance of qualified
English-speaking manpower, which is not always the case for Chinese or
Brazilians, is a real opportunity for companies wishing to develop
internationally.
Much more than a simple
"subcontractor" country, India represents a real opportunity for
businessmen wishing to develop their business internationally. To support the leaders and their companies to
launch into export, many small structures provide time, know-how, and a local
network allowing them to consider starting an export activity for a reasonable
budget.
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