International Company Formation and Common Characteristics of International Business Companies

An international business company or international business corporation (IBC) can be regarded as an offshore company that has been formed under the laws of specific jurisdictions as a tax-free company which does not have the permission to engage in business within the jurisdiction it is incorporated.

The characteristics of International Business Company do vary from jurisdiction to jurisdiction. However, some common characteristics of International Business Companies are:

The International Business Companies are exempted from local corporate taxation and stamp duty, with the condition that, it should not engage into any local business. However, the fees for the annual agent and registration taxes are not included in the exemption.
They help in reserving the confidentiality of the beneficial owner
The International Business Companies do have corporate powers to engage in different businesses and activities
The International Companies can issue shares. That can be either in the registered or bearer form.
They have a provisional place for a local registered agent
It can abrogate the requirement to demonstrate corporate benefit or appoint local directors or officers.

The process of an International Company Formation involves the following steps:

Approval of company name

The approval of the name is the first step in the setting up of an International Company. The Registrar of the Companies only approves the proposed name when it is not identical or almost identical to the name of any company that is already existing. When it comes to the name, the words like bank, insurance, and group are used only if the company has a special requirement for that or functions in particular sector/sectors related to those.

If any existing has any problem with the name of a new company, it can object the same, however, within a span of six months.

Registered office

Another integral requisite is the address of the company. The address which is recorded in the Companies Registration Office is the registered office of the International Company. This is a very important part of company formation as the official mails or correspondences need to be sent to the address which is recorded as the registered office. Please note that the registered office address can be different from the trading office address.

Shareholders

In the International Company Formation, the shareholders and stockholders play a very important part as they invest into and hold shares in the assets of the company. They have also specific rights like voting at general meetings of the company.

If the company is making considerable profit, they have the right to be awarded a considerable dividend. If it is liquidated, they can also make claims to get back the money they invested. What’s more, the shareholders even have the power to remove the Directors of the company.

Authorized and issued share capital

The authorized capital signifies the total numbers of shares that can be issued among. This plays a key-role in the International Company Formation as shares are allotted to different share holders which is known as the issued share capital of the company.

Memorandum and Articles

The objectives are, main and subsidiary, are together referred to as the Memorandum of Association. It describes in a nutshell the name and the limited liability of the members of the company. The internal operations and the management that sets the meetings and the number of directors for a quorum are governed by the Articles of Association.

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International Business Site – Get Help With International Business Negotiation

For many business owners the prospect of trading internationally for the first time can be a very worrying experience. The choice to locally source products has always been a favoured method of conducting business however in today’s day and age there is simply so much money in international trade that businesses often cannot afford to miss out. Due to lower labour costs, lower tax and generally lower production costs countries such as China, as a small example, manage to produce high quality products at a fraction of the price; something which could seriously increase your businesses profits.

The first thing that many people have to realise is that international business negotiation is never going to be exactly the same as local business negotiation. As you travel around the world various different countries and business communities have various different business principles. Being able to adapt to these principles is therefore a must if you wish to trade in those regions of the world.

An international business site offers a very in depth look into the cultures and business principles of the most common countries where international business takes place and aims to help those new to international trading get a head start. It will teach you not only about the culture and common practices in the country, but also about the business etiquette and how you should move towards international business negotiation.

Common things you need to know about the country before you start international business negotiation.

The chances are that if you wish to conduct international business negotiation you will be flying out to your country of choice. Even if you find a company you would like to trade with online this is a certainty. Here are some of the things you should know before you make your initial visit:

1. The business practices for greeting / meeting a new person such as handshakes and hellos.
2. What the general business attire is in any given country. Some countries will keep the idea of wearing a suit whereas some may be more relaxed on what you can where to a business meeting.
3. Different countries have different practices when presenting business cards or exchanging credentials. For example in Asia you are meant to treat a potential partners business card with the up most respect, meaning that you receive it in two hands and place it careful in your inside jacket pocket.
4. You should learn about the rules when eating in said country as the company you are negotiating with may take you for a meal. This is important in places such as China, where cleaning your plate is considered an insult; very different to countries such as the UK where it would be a compliment.
5. Look into the countries culture and what they like to do for business entertainment.

Using the international business site will help to learn all of the things mentioned above about various different regions of the world. This will give you a head start when it comes to travelling abroad when looking to kick start some sort of international business negotiation.

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Four Steps to Accelerate International Business Growth

U.S. exports continue to grow, but many American companies lack the international business know-how to capitalize on this potential source of increased sales and profits. Proliferating trade agreements and a weakened U.S. dollar have resulted in one of the most favorable export markets in decades. Foreign importers of U.S. goods report an increasing demand for U.S. products–from popcorn to pet food. The U.S. has enjoyed 11 straight quarters of increasing exports–yet with 95 percent of the world’s population residing outside of U.S. borders and an increasingly promising international sales outlook, experts are questioning why only 5 percent of U.S. companies are currently exporting. But how do we initiate and sustain growth in unfamiliar markets?

1. DEFINE STRATEGIC NEEDS

Tapping into new markets provides the opportunity for increased revenue and profits. However, this initiative needs to be consistent with the company’s overall strategy. Inconsistent, sporadic, or unfocused deployment of resources directed toward international growth can result in an underperforming initiative that soaks up limited resources with little return. Barriers to entry (duties, regulatory, and trademark restrictions) need to be identified and addressed. A SWOT analysis detailing the company’s strengths, weaknesses, opportunities, and threats will identify and help maximize the company’s strengths, minimize its weaknesses, and give focus to the international opportunity.

An international growth plan consistent with the corporate strategy will enhance the odds of success. Tactical aspects of international development such as sales, distribution, and marketing need to be addressed. International growth factors can be sufficiently different from the U.S. models that a lack of familiarity can dramatically reduce the chances of success. Above all, there must be clear direction, full management support, and dedicated resources.

2. SECURE APPROPRIATE ASSISTANCE

Small or medium firms initiating or expanding into international business will find the U.S. Government’s Department of Commerce (DOC) an enthusiastic partner in helping American companies succeed globally. This organization coordinates resources from across 19 Federal agencies to help American businesses plan their international strategies in an increasingly globalized environment. In an unfamiliar foreign market with confusing regulations, uncertainty, and risk, the DOC can help U.S. businesses navigate the overseas sales process and avoid hazards such as payment defaults and misappropriation of trademark and intellectual property.
The DOC’s commercial service provides a surprisingly actionable array of quality services including in-country market research, trade events and missions, trade leads, and introductions to prospective business partners. The Export-Import Bank and the Small Business Administration unite to help in the financing of U.S. goods and services exports to the international market, enabling companies to turn international leads into solid sales.

Firms specializing in international business development can help jump-start foreign expansion. These firms are groups of highly skilled, experienced professionals offering practical, cost-effective assistance to companies committed to maximizing revenue and profit potential through accelerated international growth. The range of services offered varies by firm, but overall they help companies conceptualize, implement, and manage large or small international business development projects. These services can range from determining the overseas market potential for a product to managing a firm’s export sales to identifying and qualifying foreign strategic alliances.
A company wanting to penetrate the international market needs to assign a fully dedicated resource to this initiative. This individual should be the linchpin connecting the organization’s resources, know-how, and culture to the international initiative. As the business develops, additional resources should be assigned to maximize the opportunity. These should be considered investments rather than costs.

3. DETERMINE MARKET ENTRY STRATEGY

A firm’s appropriate market entry strategy will largely depend on its level of international development. For a company just commencing its international development, market penetration via in-country distributor sales may be the fastest and most cost-effective way to enter a foreign market. Selling through in-country distributors is relatively low-risk and will provide valuable learning opportunities. Once the target country or region has been identified, a process that will naturally derive from the SWOT analysis, the selection process can begin. Various U.S. government agencies and trade associations can provide a wealth of data to begin narrowing the selection.

Trade publications and events are also an excellent source. Factors to consider when selecting a market may include such criteria as regulatory environment, market size and potential, cost of entry, and competitive environment. To further narrow the possibilities, an in-country visit is required. Once there, the use of trade leads, competitive evaluations, local government assistance, and potential candidate interviews will provide additional information and insights. Major considerations in selecting a distributor are: willingness to assign a dedicated resource, market leadership or track record, marketing savvy, complementary and not competitive products or services, site inspection, and financial stability.

Penetrating a new international market is often perceived as an extension of the existing domestic business. Consequently, many American companies bypass standard business guidelines requiring rigorous market analysis. Only after performing thorough due diligence can one elaborate a service or product offering and accompanying marketing programs.

A company’s preferred mode of entry–in-country distribution, joint venture, merger, or acquisition–will depend on that firm’s primary objectives from opportunistic sales to positioning for long-term market-driven growth.

Economic globalization will increasingly lead to the creation of strategic alliances. U.S. firms must make sure that potential partners share short- and long-term objectives in order to reduce the divergence of ideas and efforts. Common values and shared business/ethical standards will enhance communications, transparency, and effectiveness. The partners should have complementary strengths and weaknesses to build a stronger and more effective alliance. Principles and processes for conflict resolution and the relationship must be drafted and agreed to by all parties concerned for the partnership to run smoothly.

4. DESIGN EFFECTIVE MARKETING

All markets have commonalities. However, effective international marketing begins with the awareness that markets are also different in ways that are not immediately apparent. The key is understanding consumers and identifying their needs through culturally specific market research. Focus groups can be especially effective in identifying the international consumer’s wants and needs. The advertising agency used in developing the offering should be local or have local representation. Employees with a thorough knowledge of market characteristics and idiosyncrasies will be particularly effective in communicating the desired message and creating and enhancing the brand image. Language skills and an affinity for different cultures are critical assets when marketing internationally.

Flawless execution is key. As a firm executes the international strategy guided by a solid business plan, it is important to celebrate milestones and benchmark against industry leaders.

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International Business Degree Schools Online

Online schooling options are available to students looking to obtain a degree in international business. There are numerous schools and colleges that offer online degree training in the field of business. Students can prepare for the career of their dreams by enrolling in a number of programs. Online schools and colleges allow students to train for careers working in international finance, management, marketing, sales, importing and exporting, and more. Student may study coursework such as foreign culture, economics, imports and exports, tax, and much more depending on the chosen level of degree and specialization. Online degrees in international business can include an associate’s, bachelors, masters, and doctorate degree.

Associates degree programs are available from numerous online schools and colleges. Students can obtain an associates degree in international business in as little as two years depending on the specific area of concentration they choose. Coursework may consist of studying international trade, macroeconomics, global markets, international marketing, and other related courses. Students who wish to enroll in an accredited online program can train for careers with banks, multinational manufacturers, import/export corporations, consulting firms, and other international organizations. With an accredited associates degree students will have the skills and knowledge to pursue a bachelor’s degree in the field.

There are a number of accredited online educational programs that allow students to train for numerous careers in international business. An online bachelor’s degree program will take students approximately four years to complete. Course curriculum will vary depending on the specialization chosen by the students but may include the study of economics, principals of marketing, foreign language, international business finance, cross cultural studies, and much more. Students who wish to pursue international careers such as management analyst, sales representative, auditor, and accountant, should consider a bachelors degree. Those who wish to further their education can consider online degree training for a master’s degree in international business.

Online schools and colleges allow students to enroll in masters degree programs in the area of international business. Online degrees at this level typically take students two additional years to obtain. Students can choose to specialize in a specific area including international trade, tax, management, and much more. Areas of study may include international business policy, trade controls, international finance, foreign operations, and more depending on the chosen specialty. With an accredited masters degree students can pursue careers as international marketing directors, multinational managers, international trade managers, financial controllers, and international foreign policy advisors. A degree at this level of education will allow student to enter the workforce or enroll in a doctorate program.

A doctorate degree in international business will allow students to earn their degree with an additional two years of study. Online educational programs train students in a number of subjects to ensure they receive the knowledge and skills to pursue the career they desire. Coursework may include theory of international business, research design, marketing, communications, multi-national enterprise, and much more. With an accredited online education students will obtain the necessary training to find employment as economic researchers, university professors, business development managers, chief executive officers, and other professionals. A doctorate degree is the highest level of degree obtainable in the field of international business.

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International Business – Degree Study Programs

It is no surprise that businesses are crossing over into other countries by selling their product internationally. The challenge of conducting business internationally is the differences in policy and social interaction. The need for education in business is essential and students can enter degrees with an international focus from business schools across the country.

With companies expanding their reach into foreign markets the study of business in regards to international work is required.

Students can enter multiple degree programs that focus on the differences of business culturally, geographically, and economically.
Studies can be entered at all degree levels, which present students with a variety of careers that they can transition into once they graduate.

There are numerous things for students to know prior to enrollment in a learning program.

1. Beginning education with an associate’s degree provides students with specialized international business courses, general business courses, and some general education courses. The ultimate goal is to train students to enter work in global firms. Students explore global industry standards and regulations that help them become comfortable with international business tactics. Through the examination of business roles in global agenda students become an asset inside their job. Students are taught how to facilitate strategies that center on helping businesses be strong internationally. A general international business course introduces students to the geography, the Internet, and the cultures that participate in global business. Subjects covered include organizations, monetary systems, and business roles. Education at this level is a good stepping-stone to start a career or continue education.

2. Students can study in concentrated areas such as international banking, exporting, and marketing when they enter a bachelor’s degree program. A program goes through the different regulatory practices that make up the work involved in international organizations. Essentials of business are also taught, which includes microeconomics, data analysis, and accounting. Courses on international marketing, finance, transportation, and the global market build upon basic business principles to create a well rounded professional. A marketing course gives students the framework for how marketing crosses national borders. Different foreign markets are examined to prepare students to work with various factors when deciding how to market internationally. Many students enter a career directly after completion but some use a bachelor’s for an education base to enter a master of business administration degree.

3. Management level skills are gained when students work through an MBA in international business. Areas like business risk, foreign interaction, and contract assessment are discussed inside advanced level coursework. Students are able to explain regulations on importing, unfair trade, and law. Management courses on marketing, finance, advertising, and leadership are taught from an international strategic standpoint. Career work can be done in global companies as well as in government agencies and banking companies. Many students work within international companies throughout different areas of the world. In depth research and understanding is obtained when students work through a PhD degree. Curriculum is highly focused on advanced international study. Career work usually consists of becoming a post secondary professor.

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