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FREQUENTLY ASKED QUESTIONS |
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| What are some of the questions addressed in a market study? |
In making a detailed market study the following should be considered:
*does the country selected already imports the products
(statistics will show how much and from where)
*size of the market and future projections for the industry
*demand for the specific product
*comprehensive list of barriers: government, consumers, foreign competition.
*local taxes, such as sales tax
*infra-structure of the import market-channels of distribution and entry
(frequency and cost of shipping or airfreight)
*regulations like labeling standards, consumer protection & product standards
*cultural differences-understanding economic and social factors |
| What is the difference between an importer, agent and distributor? |
Commission or buying agents sell on behalf of exporters and receive a commission on sales made. They seek out potential customers and
may be used to facilitate and promote your products in the respective markets. Buying agents to not take legal possession of any goods.
Importers solely import goods for resale to other companies (distributors) for sale to retailers. Importers and distributors take legal possession
of goods and pay exporters. They are usually obliged under the terms of their agreement with exporters to carry stock and to provide after
sale service when necessary.
The basic difference between an Agency and Distribution relationship is that the Agent does not purchase goods for re-sale but only
promotes the sales of such goods on behalf of the exporter whereas a Distributor buys the stock and re-sells it to the end user. |
| What is a Corporation and how is it formed in the United States? |
A corporation is a legal entity that exists separately from its owners and offers limited liability. This limited protection is often referred to
as the corporate Veil. A corporation needs to follow proper corporate formalities and capitalization requirements to protect the separation
of the entity from its owners.
A corporation is formed by properly filing completed Articles of Incorporation with the correct State Authorities and the payment of all fees.
Basic articles include the Name and Address of the Corporation, the Nature of Business, Capital Stock and Limitation of Liability. |
| Where should I incorporate? |
Most foreign companies as well as over half of all US publicly traded companies incorporate in Delaware because it is considered a
pro-business state. Nevada is also recognized a state friendly to corporations. If you are conducting business in a state other than
the state of incorporation you will be required to file a Foreign Qualification for that particular state.
Many closely held businesses (not publicly traded) choose to incorporate in the state where they do business due to the simplicity and ease
of filing.
A company is also subject to state taxes by the State where you conduct your business. The advantage of incorporating in a state with low
or no corporate income tax is thus not as great as it might appear in some instances.
The benefits of a Delaware Corporation are as follows:
*no minimum capital requirements
*no corporate tax for corporation incorporated in Delaware but not transacting business in the state
*One person can hold all of the officer positions and these names are not required to be listed (Anonymity)
*Shareholders, directors and officers need not be residents
*shares of stock owned by persons outside of Delaware are not subject to Delaware taxes. |
| Can a foreign national obtain financing to buy a house or other residential property in the United States? |
A mortgage to a non resident is called a Foreign National Mortgage loan. Financing is provided by US Mortgage companies and Banks.
These loans are offered to resident aliens, temporary residents or other classifications of either temporary or permanent status.
A minimum deposit of 25% is usually required which means you can obtain financing up to 75% of LTV (loan to value) with or without income
verification. Documentation requirements are minimal and can very depending on the amount of deposit and interest rate on the loan. |
| What type of tax incentive programs are provided by State and Local Municipal authorities? |
Many states encourage economic growth and investment by offering tax advantages and incentives to businesses that are located and/or
invest in distressed areas (Enterprise Zones). Although local zones have the same basic goals of revitalization and community redevelopment,
each zone offers their own local incentives.
Businesses that qualify may receive tax credits or refunds of State Sales and Income Taxes. |
| What is the time frame to form a corporation and open a bank account? |
| To review, prepare and file all necessary documents for the formation of a US corporation requires approximately two weeks. A bank
account is opened within this time frame. There are situations where you may need a rapid filing. In these circumstances we can file
state documents and receive notarized formation articles within 2 to 3 days. Delaware state statutes allow for a change in corporate
entity or "conversion". Various other states, like Nevada and Florida, also allow for conversion. |
| What is the time frame for setting up a representative office or full branch operations? |
The logistics of setting up a representative office or full branch operations are tied to your desired start date and the availability of office space
for lease:
For service or representative centers you may prefer Executive Suites with video conference, receptionist, mail service, computer work centers,
phone, fax and internet connection as available amenities. Leases for these arrangements can be short terms, ranging from 3 months to one year. You can usually set up a service center within a 3-4 weeks time frame in conjunction to the incorporation phase.
Self contained, dedicated and secure work environments within business centers with build-out options may require longer leases and are also
available within a few weeks. Proper negotiation of terms is recommended.
Warehousing and Distribution space with or without administrative offices within major hubs (airports, seaports, railway and trucking routes)
requires customized planning with synchronized operation and lease start date.
In the United States long term lease agreements usually contain an initial term of 2 to 5 years with option clauses for renewal. |
| What are the keys to successful negotiation in the United States? |
Negotiation is the art of bargaining and coming up with an agreement between two or more individuals. An environment of open communication
and transparency are requirements for successful negotiations. The characteristics of a good negotiator are:
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Is a good communicator with the ability to communicate ideas well. Misunderstanding may arise between parties from an inability to
converse properly. |
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Is a good listener. Negotiation is a two way process and the recipient of the information communicated must be able to understand and
interpret the data properly. |
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Competence and knowledge. This requires intense knowledge and experience about the company, product, services and
projects that are
being negotiated with other businesses. Moreover, the negotiator must have a good idea of what the other party wants from the transaction
and be able to balance his needs with their needs. |
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Is able to analyze and make bright decisions quickly. |
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| What are the most important ingredients for a successful venture in the United States? |
| Success result from a variety of factors including careful planning, solid business management techniques, creative problem solving
and surrounding your operation with a talented and dedicated staff. Luck has often been mentioned as another ingredient but our experience
has shown that hard work, perseverance and a belief in yourself and your product or service will create opportunities which are often
attributed to luck. |
| How do the United States tax rates for corporations and individuals compare with other members of the OECD, Organisation for
Economic Cooperation and Development ? |
At 39% (inclusive of state income taxes) the United States boasts one of the highest average top corporate income tax rates, second only
to Japan. Average rate for the major competitors is approximately 31%.
Alternatively, with a top combined marginal individual tax rate of 39%, the United States ranks in the bottom of the list. Proper tax planning,
income shifting and other financial techniques are used to minimize your tax burden and increase your cash flows. |
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| Sartori International |
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255
Oceanic Avenue
Fort Lauderdale, Florida 33308
Phone: (954) 309-1109
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Bruno Sartori CV
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About the founder
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Opening an office
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Understanding the problematics of a start up operation......
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Welcome to SI
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Introducing your Project Team........
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