Tips To Get started In Import-Export In 2022

specialists in delivery from Flipkart to the USA

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. 

Post a Comment