Export is a term which means shipping of goods and services out of the jurisdiction of the country. People mainly involved in this type of Business are called the Exporter. Selling of goods improves the gross output of the country. Export is an activity requires the involvement of the customs authorities in both the country of export and the country of import. There are different types of trade barriers caused due to government laws, regulations, and policy.
In many countries, internet has bypassed involvement of Customs because of the low individual values of these trades. Since International trade has been a theory of economic thought. Export has an important role in the international trade and commercial policies. There are different methods to export such as
- Shipping by air
- Shipping by vessel
- Mailing and Hand delivery
- Downloading and Uploading on the Internet site.
Export business involves a plan. Following are the plans that can be used in Export Business.
- Export of Product and Services
- Capital Requirement
- Market Study
- Customer Study
- Transportation and Logistics
Process involved in starting of export Business
There are mainly 3 types of Export Business
- Start an Export Management Company if you wish to be the partner with domestic sellers to find foreign buyers for a small group of companies. EMC export operations for a domestic company that wants to sell its product. The hiring of dealers, distributors, and representative, handling advertising, and marketing promotions. EMC has merchandise to sell and is using its energies to seek out buyers.
- Formation of an Export Trading Company for serving foreign buyers by matching them with domestic suppliers who can serve their needs. ETC attacks the other side of the trading coin. Identification of foreign buyers who want to spend their money. It also takes title to the goods and works on a commission basis.
- It can be also be started by becoming an Export Merchant if a person wishes to purchase merchandise on your own and sell it in foreign or domestic markets. Export is sort of free agent.
Business registration-In this process you need to obtain licenses and permits from the country where you want to explore your Business. This is the first action plan after the decision of type export business. It is recommended to start the business with private limited venture which offers the promotion because of easy protection and easy to access loan. Private limited Company is the most preferred type of firm for export Business.
Tax Registration-After Business registration, Tax registration can be obtained by Business entity name and PAN. Once the PAN has been obtained Bank Loan syndication, Raw Material, and other equipment can be easily purchased. Good and services do not attract VAT/Service Tax.VAT registration is required in case of purchase from another state.
Importance of IEC - It is the code compulsory for any legal export Business. IEC license is required for specific service and also identification of the export business. It is not compulsory in those conditions in which export is for personal use and charitable organization approved by Central Government.
Focus on the early stage of your business by choosing a target niche. In the export vast range of industries are chosen for the benefit of the business and establish a reputation. Export can be of out-of-season produce and inexpensive foreign staples.
Establishment of Foreign contact This is a time-consuming process in which you need to compile contacts. Place calls and mail marketing materials directly to sales and purchasing managers in each company.
Determine the needs of each of your contacts and begin to make connections. Compile a list of interest of people involved in doing business with you in the previous step. Communicate with purchasing and sales managers in each company to discover which products they have to offer to foreign buyers and which products to purchase from a foreign source.
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