Legal aspects to internationalize a company

Legal aspects to internationalize a company

Legal aspects to internationalize a company

Legal aspects are paramount from the moment a company decides to internationalize. These may vary depending on the activities that the company carries out abroad since not all of them have the same objectives. Along

Along these lines we leave you some of the most important legal requirements to internationalize a company:


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  • Rules that regulate international trade. The WTO (World Trade Organization) is the international organization in charge of these standards. Investigate the legal aspects that could affect you according to your sector.
  • Take into account the means of collection in international transactions, which will be determined by the agreements that have been made between the importer and the exporter.
  • Be aware of Tariff Law and the rules that regulate international trade operations in VAT, with exemptions in intra-community deliveries of goods and exports.
  • Know the taxation of the country where you want to expand the business. It is important to know the regulations that govern both the country of departure and the country of destination. Contact with professionals in the country where you want to operate is important to be aware of these rules.
  • Attend events and meetings of people in the sector to network and learn about opportunities in other countries. The ICEX is a good opportunity to be aware of the meetings.

The challenges of exports for companies

The main thought that leads businessmen to make the decision to export is the most basic and rational reasoning that anyone does in times of crisis: if things don’t work here, we will have to try other places where people’s purchasing power is higher, sales are not being affected, etc. The idea that maintaining the business will be easier if it is sold in countries with better economic conditions is not unreasonable. However, the key to the success of the export process lies in the strategy that the company follows and not so much in the country in which it wants to sell.

The will to sell, or to continue selling, is a good start, but it is necessary that this will be accompanied by the desire to grow. An SME, in particular, must think that leaving the incubator of its country, which until now has limited it to certain magnitudes, means having to grow irremediably and it is necessary that it accept this challenge with enthusiasm and without fear or limitations.

For a small company to grow and enter the international market implies a series of changes that must be adopted and challenges to overcome:

Optimize processes

First of all, you must optimize the processes to be more competitiveThe competition will be bigger and you will have more years of experience. The fact that competition is growing tells us that the market is also growing and, consequently, the number of products and deliveries that are going to be carried out will grow. Is the company ready to invest in a competitive production and distribution model?

Compensate for seasonality

On the other hand, the company must also be able to compensate for the seasonality of the product within the global market. Suppose a farmer decides to export his fruits and vegetables to the world. What will he do when it is winter in his place of origin and certain fruits do not grow but are demanded on the other side of the world, where is it summer? The farmer must find a way to compensate for the lack of products or have the option of being able to sell to several countries and synchronize the demand for the product throughout the year.

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