We are the creators of this Internet platform, and we would like to start a series of articles on how the door producers or companies selling different kind of doors can start exporting them on international level.
1.THE MOST IMPORTANT AND FIRST RULE – after you start export operations in another country, you need to be protected from companies that plagiarize trademarks and industrial design, which will simply force you to buy your trademark and industrial door design, this is a common practice all over the world. Example: You have found the right partner in the region you are interested in and started exporting. Sales are growing and at one day you receive a letter with information that your trademark and industrial design of the doors are patented and you have only two options left. First is to buy your trademark and industrial door design or stop selling, because you do not agree to buy patents for your own products.
Therefore, do not jeopardize your business because of the things that you think are not important.
It is hard to understand how to do patenting procedure yourself, if you don’t have certain skills in this matter. After studying the pricing policy on this issue, “intermediaries” firms can increase the cost of patent services by 100-200%, this is a business and nothing more. We offer an absolutely transparent algorithm of these procedures. The customer understands how much obligatory payments cost and how much our company earns.
If you do not patent your product, you risk losing your business abroad.
2. Second question, which business owners are interested in- Is it worth it to open a company abroad and will it be profitable?
In export operations, there are a lot of myths which can prevent you from making the right decision based on analysis and not speculation and rumors.
For perception, it is necessary to understand the pros and cons of a company abroad.
* You have signed a contract with a foreign partner, you have been prepaid, for example 50% advance payment and 50% after delivery. If you shipped directly to a foreign partner and are waiting for the second payment of 50%, suppose the business did not work, your client did not die, did not close, and he has money, but he does not want to pay the second payment for various reasons. What should you do ? You have a foreign exchange contract, in which there are obligations that you must receive the full amount. Finance monitoring agency will not be happy with that, as a result you may pay a fine which can be 100% of the contract value. You can pay a fine in Finance monitoring agency, but what is next? You can file a lawsuit with the International Court of Justice, against your partner, but how much will the lawyer in such cases cost? I have to say it will be incredibly expensive.
We have analyzed this situation if you do not have a company abroad. Suppose you opened a company and how will the situation change in this case? You can file a lawsuit in the country of registration of your company and simplify the procedure of judicial relations, since you are directly in this country and the chances of success increase significantly. Further, in order to avoid problems with Finance monitoring agency, you can deposit your finances to the current account of the company abroad and pay the amount of the contract that was not enough to pay off the foreign exchange contract. I understand that it is problematic, to invest your money, to pay for your contract, but you won’t have problems with Finance monitoring agency.
Therefore, the pros of company abroad is obvious. You control this issue from start to finish.
* There is no reason for foreign partners to get involved in the problems of finding transport, issuing invoices, customs clearance of the goods, even if your product is extremely interesting to your partner! He or she will have no interest to work with your products due to bureaucratic barriers.
That’s the second plus, you give the final product to your partner! Your partner will be pleased with the transfer of the goods, as if he had bought them in a store.
I want to convey to you that the search of transport and paperwork is not the “end” of the world, it is a normal procedure that requires new skills and nothing more.
* Another myth about the company abroad, that you need to register this asset in the local tax center, since you are the founder.
Yes, you are obliged to file a declaration, but it does not commit to anything! The main factor that you need to understand about the Law on controlled foreign companies – what does your company do? The main thing is that your business needs to be active. This means that you are engaged in trading activities but not, for example, set up a company to buy stocks and bonds.