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CAN EXPORT BE MADE WITHOUT ESTABLISHING A COMPANY?

WHAT IS EXPORT

Exports can be expressed as the sale of goods or services from one country in which it is manufactured or in free circulation to another country. In this article, we will examine more in the context of the exporter, which is the most important figure in the export of goods.

WHO CAN EXPORT

As we mentioned in our previous articles, any company with a tax number can export.

WHY WE NEED THE CUSTOMS CONSULTANT TO EXPORT

Customs Consultancy companies play a determining role in important transactions of Foreign Trade such as import and export. As they are members of the profession, Customs Consultants are one of the institutions that protect the interests of the sector stakeholders, who have a command of the Customs Law, the Customs Regulations, the Anti-Smuggling Law, the Law on the Protection of the Consumers and many other regulations, and also need to be consulted in the export transactions.

MATTERS TO BE CONSIDERED FOR EXPORT

Those who want to export should first clarify the main issues we have mentioned in the following headings;

Determining the Buyer First

The most important items in trade are the seller, the buyer and the commodity that will be traded and value will be determined. From this point of view, “Buyer” is very important for export. You should keep in mind that your buyers in potential markets are the main determinant of your export, assuming that the product you intend to export is clear.

You Need to Determine Terms of Agreement

After the buyer is resolved, the terms of the agreement must be determined. So, what are these conditions?

-“Delivery Type” of the product subject to export (INCOTERMS 2010): The Delivery Type is very important as it is an issue that determines the insurance costs and local costs as well as transportation. If you have incomplete information on this subject, we recommend you consult a specialist, especially the Customs Broker.

-Payment Method: It is important to determine under which conditions the price of the product subject to export will be paid and to be agreed with the importer company on clear terms.

Transport Responsibility is Important

Determining the “incoterm” mentioned above regarding the export to be made will constitute the final decision regarding who will be responsible for the transportation. 

Because, if the transportation responsibility is in the exporter company, it should be the subject of the decision together with the partner and customs consultant who will undertake the transportation, deciding which modal (air, land, sea, train, etc.) to be carried out.

CAN EXPORT BE MADE WITHOUT ESTABLISHING A COMPANY?

A tax number is required to export. Individuals must either establish a legal entity (ie set up a company) in order to export, or they must engage in the Individual Proprietorship by registering in the Chamber of Commerce.

From this perspective, exporting without establishing a company can be made possible by Individual Proprietorship registration at the relevant chamber of commerce.

CHAMBER OF COMMERCE APPLICATION

For registration applications to be made to the chambers of commerce, it is necessary to complete the necessary procedures before the Chamber of Commerce Registry and Chamber Registration Directorate. Of course, it is also necessary to obtain a Tax ID. It is of great benefit for individuals to consult with a tax advisor before engaging their individual company.

FOR FINANCIAL CONSULTANTS AND TAXES

On the other hand, since there is an obligation to issue an invoice for export abroad, it is necessary to print an invoice from an authorized printing house and issue the invoice for that sale before preparing an export declaration.

In order to coordinate all of these, it is useful to communicate with a professional Accounting firm or Financial Advisor and get their support.

CAN I EXPORT THROUGH ANOTHER COMPANY WITHOUT ESTABLISHING COMPANY?

In fact, the answer to this question is yes, but there are certain elements that need attention.

These topics are briefly;

-It should take the commodity to be exported to the inventory of the brokerage firm. To put it more simply, the intermediary firm to export should issue an invoice with an invoice issued to it prior to export. Otherwise, it violates the Turkish Commercial Code and all tax regulations.

– Since the intermediary firm to export will take all legal responsibility before the public, it is of great benefit to clearly describe the trade that will be the subject of export with a contract.

Another issue to be considered is the risk of the “Individuals”, who plans to export without establishing a company, to remain outside the trade while the Buyer and the Seller come together on the export platform. For this purpose, even if export is thought through another company, it should be planned correctly, and all conditions should be determined with the contract or it is useful to establish a legal entity and establish export transactions through your own company after a certain period of time.

OUR MISSION AS CODE

In export transactions, CODE is obliged to ensure that the transactions are established in accordance with the legislation for exports to be made through an Individual or an intermediary company registered with the Chamber of Commerce. CODE also guides the delivery of exports to the receiving country with the least cost and hassle-free by providing consultancy on delivery method and payment methods.

 

 

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