Aspects of Export
The advancing development of international cooperation and exporting is making economic activity increasingly complicated. Business transactions not only need to be seen from a commercial point of view; it is also necessary to take technical, legal, fiscal and human factors into consideration.
Fairplay in Export
The provisions of the OECD Model Agreement (especially Section 5), for example, have made it quite difficult for a company to set up a sales organization in a foreign country without at the same time establishing a place of business there.
Since, however, the administrative requirements for setting up a place of business are more or less the same as for a foreign branch, it makes sense in this case to opt for setting up a legally independent branch from the outset.
You of course have the option of developing the market with the help of a general importer.
What may at first glance appear to be a simple solution, however, as a rule turns out to be risky and expensive. Risky, because the entire risk lies with one person or organisation (the importer is your only customer in that country). Expensive, because to market your product the importer has to calculate margins, which, in competition with other suppliers, makes your product less attractive.
Your own subsidiary
After considering the alternatives and weighing up all the arguments, there is really only one viable possibility for developing foreign markets: a wholly-owned sales subsidiary.
Organise your export activities with your own means, present yourself to your customers as a local business and sell your products under your own corporate identity. What was and is the right approach in your country of origin applies in equal measure to the foreign markets you are aiming to develop.
We will support you with all our expertise.