Author: Stella DC

Information on Ceramic Exports from India to USA

Stella DC USA Business , , ,
Information on Ceramic Exports from India to USA

The market for ceramic exports from India to the USA has been significant and growing in recent years. To provide a detailed picture, here are some relevant points about the size and trends of the ceramic export market to the USA:

Market Size and Trends

1. Overall Export Figures

  • Volume and Value: According to the latest available data, India exports a substantial volume of ceramic products to the USA. For instance, in 2022, the export value of Indian ceramic products to the USA was estimated to be around $500 million to $600 million.
  • Growth Trends: The export market has been growing steadily, driven by increasing demand for Indian ceramics, which are valued for their quality and competitive pricing.

2. Product Segmentation

  • Tiles: Ceramic tiles constitute a major portion of exports to the USA. The demand for tiles, including floor tiles, wall tiles, and decorative tiles, has been robust.
  • Sanitary Ware: Indian sanitary ware products, such as sinks, toilets, and bathroom fittings, also hold a significant share of the export market.
  • Tableware and Decorative Items: There is also a notable market for ceramic tableware and decorative items, including dishes, vases, and art pieces.

Factors Driving Growth

  1. Quality and Design: Indian ceramic products are known for their high quality, diverse designs, and customization options, which appeal to US consumers.
  2. Competitive Pricing: Competitive pricing compared to other countries, particularly due to lower production costs, makes Indian ceramics attractive to US buyers.
  3. Trade Policies: Favorable trade policies and bilateral trade agreements between India and the USA have facilitated easier market access.

Challenges

While the market is growing, Indian ceramic exporters face several challenges:

  1. Compliance with US Standards: Meeting stringent US quality and safety standards can be demanding.
  2. Logistics and Supply Chain Issues: Efficiently managing logistics, transportation, and ensuring timely delivery remain critical concerns.
  3. Competition: Intense competition from other countries, particularly China, requires continuous innovation and cost management.

Registering a company in the USA can offer several benefits to Indian ceramic exporters, potentially helping to mitigate some of the challenges they face in overseas business. However, it also comes with its own set of considerations and challenges. Here are some potential advantages and considerations:

Potential Advantages

1. Improved Market Access and Trust

  • Credibility and Trust: Having a registered presence in the USA can enhance credibility and trust among American customers and partners, making it easier to establish and maintain business relationships.
  • Market Penetration: A local presence can facilitate better market penetration by providing direct access to customers, allowing for more effective marketing and sales efforts.

2. Logistics and Distribution

  • Efficient Distribution: A local office or warehouse can significantly improve the efficiency of distribution and reduce shipping times and costs. It can also help in managing inventory more effectively.
  • Reduced Transit Damage: By storing products locally, the risk of damage during long-distance transit can be minimized.

3. Regulatory Compliance

  • Simplified Compliance: Operating as a local entity can simplify compliance with US regulations and standards, making it easier to navigate the legal and regulatory landscape.
  • Easier Certification: Obtaining necessary certifications and meeting quality standards might be more straightforward with a local presence.

4. Customer Service and Support

  • Enhanced Customer Service: A local presence enables better customer service and after-sales support, which can improve customer satisfaction and loyalty.
  • Handling Returns: Managing returns and exchanges becomes easier, which can enhance the overall customer experience.

5. Financial Transactions

  • Simplified Transactions: Financial transactions, including invoicing and payments, can be simplified and may reduce currency exchange risks.
  • Local Banking: Access to local banking facilities can help in better financial management and possibly avail local financing options.

6. Market Intelligence and Adaptation

  • Better Market Insights: Being physically present in the market can provide better insights into consumer behavior, market trends, and competitive dynamics.
  • Product Adaptation: Easier adaptation of products to meet local tastes and preferences due to closer proximity to the market.

Overall, registering a company in the USA can provide significant advantages in terms of market access, customer trust, and operational efficiency.

At “OCP” Overseas Corporate Professional we have helped numerous Indian companies for overseas business setup and to expend their wings over there. Our experienced team can assist in ensuring that all the administrative tasks are handled efficiently and compliantly. By working with our expert team we can take the stress out, Our local presence in India always gives you a comfort to deal face to face rather relying on any virtual assistance like other service providers do.

Connect with our expert team on +91 9558810195, +919558811039, +1 917 722 2435 or visit www.ocpbiz.com

How to decide the best business type for your company?

Stella DC USA Business

One of the key questions at the time of opening new company in USA is the selection of the type to form. The decision is a crucial one and goes a long way in determining the tax purposes and help the entrepreneur to plan for the future expansion of the business.

Factors determining the type of business:

Generally, the following points are considered to be the most important in the decision-making process, when starting a business or considering a business type change:

  • Control of the ownership and the level of trade-off between control and profit/loss
  • Cost and complexity of operation of the business including legal and retainer fees, cost of operation
  • Choice of the state and the Taxes on the business which determines how the business or owner pays the taxes
  • Liability of business owners as in the way they share debts of the business

Forms of Business Entities

  1. Sole Proprietorship

The simplest of all, this is a business venture solely owned and controlled exclusively by a single individual. This means the same person is liable for the business and is accountable for all profits and losses.

Features:

  • Inexpensive to form
  • Easy to dissolve
  • Total control over Profit/loss
  • Basic Bookkeeping is required

On the pro side, the proprietor has full control over decision making and does not have to answer to the board or other partners. Tax is fairly simple which can be handled with a Schedule C form included in owner’s personal tax return. The con means the owner has to take all the liability for any losses or legal issues.

  1. Partnership

As the name suggests, it includes two or more individuals who share both the risks and the benefits. To initiate it, they simply need to register with a state and create a partnership agreement to start with. Although they need to maintain some record keeping, but not as complicated as corporations.

Features:

  • Relatively inexpensive to incorporate
  • Taxation is a bit complex
  • Each partner has joint and several liability

Partnership Options Available: Depending upon the amount of liability each partner is ready to undertake, there are two options available:

General Partnership: The basic of the both, it entails equal partnership and hence equal accountability and ownership. All decision making, profits and losses are equally shared, until specified otherwise.

Limited Liability Partnership (LLP): A limited partnership (LP) has both general partners who are involved in the daily operations of the company and the Limited partners who invest in business but don’t participate in daily operations. GPs have liability for company debts and actions, but the LPs are shielded for any such liability as long as they don’t become involved in the decision-making process.

Partnerships has to pay their taxes and report business tax liability to IRS by filing an information return. The income and loss is divided as per the agreement. Each partner gets their share of tax through Schedule K-1 form.

  1. Limited Liability Company

LLCs are extremely flexible and combines the features of both corporation (in order to limit personal liability) and partnership (with an ability to assess profits and losses). They can be incorporated in any state by registering article of organization with the state and creating an operating agreement.

Features:

  • Flexible to operate
  • Despite the fact that they provide similar protection against liabilities, they are an easier option to corporations.

One of the benefits of incorporating an LLC is the options for taxes available under different circumstances. A single member LLC can pay taxes on its personal returns through Schedule C as Sole Proprietorship whereas a multiple LLC pays like Partnership and both LLCs can elect to be taxed as Corporation.

  1. Business Corporation

A Corporation is a separate entity and can be formed with articles of incorporation under the state laws in which it is being incorporated.

Features:

  • Expensive to form- In addition to state registration, they have to keep board of directors, maintain regular meeting and report to shareholders
  • Corporation pays its own tax- owners pay taxes on dividends
  • Low Corporate tax rates
  • Ease of funds from investors

 

Professional Corporations (PCs): Specific type of corporation for licensed professionals like attorneys, doctors, accountants. Each professional can still be held liable for any wrongful professional action.

Professional Service Corporations (PSCs): Generally, they are limited to provide personal services. To get the status, the PSC has to adhere to a list of IRS requirements.

S corporations (S Corps): S Corp has the limited Liability benefit of a corporation but enjoys the taxation as a pass-through business, as partnership. It has a list of restrictions including a limit of 100 shareholders and only one class stock.

In order to incorporate S Corp, you need to fist set up a corporation in your state and then elect S Corporation status with IRS (Internal Revenue Services) within a specific period of time.

Taxes are fairly complex for S Corps as they must file a federal tax return and have separate schedules of tax due from owners. Some states also tax S Corps.

OCPBIZ helps you with the legal expertise to make the right choice if planning to open company in USA from India.

 

 

Why An Amazon Seller Should Incorporate In US?

Stella DC USA Business

Can I sell Product on Amazon USA from India? If this question is popping up continuously, read further.

The answer to your question is YES.

If you think that you need to be in USA for selling your product on Amazon US, get ready for a surprise. As per the estimates, out of 2 million third-party global sellers on Amazon, 83% sell in US marketplace with more than 50% located outside U.S.

Regardless of the location of your business, it is highly recommended to register your business as a legal business unit in US if you are eyeing to sell more than handful items on Amazon per month. Apart for making it a smoother process, it will also provide various tax benefits.

Incorporating a business and that too in a foreign country may seem to be a daunting task. Here are some compelling reasons why it is the important step to not lose precious lucrative opportunities for your business.

Getting Started with Amazon

To get started with your business on Amazon, you need to set up an Amazon account or use their warehouse facility through FBA program. In case you are going to sell as merchant, there are few other legal requirements which you will be made aware of.

Normally a non-citizen of US will have similar requirements to fulfil as the residents or citizens of the country if you are planning to sell through Amazon. Following is the list of requirements:

  • A home / business address for correspondence
  • Email Address which can be used for communication
  • A valid phone number is required for identification during registration process
  • An international chargeable credit card with a valid billing address
  • A Bank Account that can accept payment from Amazon
  • United States Tax ID: FEIN number or social security number (in case of individual)

It is always beneficial to get the FEIN number and sell as a merchant, which becomes a lot easier when the company is registered. You can also take benefit from tax advantages of being a business. Additionally, registering a business means protection of the personal assets. Consequently, it also smoothens the whole process if you are going to use FBA.

Opening Bank Account

Opening the Bank account is the first and foremost step for any business endeavour. For instance, you won’t be able to receive any payments if you don’t have registered your bank account details with Amazon.

Apart from the fact that being a non-resident is in itself a hindrance to the process, American Banks just as any other bank would require company registration documents, as a part of their bank compliance policies, to get ahead with corporate accounts.

Access to Loan/Investments

If you want to upscale your business, you might need investment, if not now then may be in future. US is the most attractive market to find genuine investors for your business and for that you need a company registered in US.

This is due to the fact that the US investors are often reluctant to finance businesses that are foreign.

Also borrowing from any US bank will require your US business credit history. If you don’t have a US company, there will be no credit history hence chances of securing loan become slim. Incorporating the business in US will provide that edge and authenticity to your business not only in the US but globally.

At the same time, an American company would likely to do the business with a company registered in US as it would be easier to tackle legal issues here at home than anywhere else. It has also been seen that the businesses in US can affect due diligence on their counterparts in a state registrar of companies online.

Incorporate your company Today!

You can get started with incorporating your business today and start reaping the benefits instantly through Amazon. Although the process needs crucial planning and several other aspects like- selecting the company type, selecting the state, registering for the FEIN number for starters- where the professionals at OCP can prove to be resourceful.

 

Legal Obligation For A Overseas Amazon Seller In USA

Stella DC Uncategorized

Amazon FBA

Know your legal obligations while selling over third party plate-form (e.g. Amazon, Wayfair)

The United States taxation system can be difficult to understand, especially for foreign nationals doing business in USA. A foreign national may be subject to one of two drastically different systems of taxation by the United States depending on whether he/she is classified as a resident or a non-resident alien of the United States. The determination of residency status is critical.Normally foreigner are considered as non-resident due to physical non presence in USA but that doesn’t exempt them from complying with local tax laws

How do you know you are liable for US tax laws: 

In general, to determine how your U.S. earned income should be taxed, you will need to determine your company’s involvement in the U.S. by checking if any of the followings apply to you:-

Level 1. Your company does have any connections to any of the U.S. suppliers/vendors, Customers or having any offices and any employees on the U.S. soil.

Level 2. Your company is using U.S. suppliers and logistics (i.e., Fulfilled by Amazon or other 3rd Party Logistics) to produce revenue, but does not have employees, office or warehouses in the U.S. In that case, your company is deemed to be “engaged in a trade or business in the United States (ETBUS)” and have generated “Effectively Connected Income (ECI)”.

Level 3. Your company has an office or employees in the U.S. (i.e., fixed place of business). You regularly conduct business with U.S. companies. You have continuous projects (over 12 months) or you provide services for 183 days or more in the U.S. In those cases, you will be deemed to have an Effectively Connected Income (ECI) and a Permanent Establishment (PE) in the U.S.

What constitutes an Effectively Connected Income (ECI) for Canadian Amazon Sellers?

In order to have ECI in the U.S., you need to have business activity in USA. Examples of that activity include:

  • Using 3rd Party Logistics (3PL) like Amazon FBA, Wayfair
  • Use of U.S. facilities (warehouses, storage, display)
  • Passing the title of imported goods in the U.S. (if you are importing from another country)
  • Using dependent agents (like employees or salespersons) to conduct business in the U.S.
  • Having a US-based bank account. 

Legal Obligation and Requirements for a seller selling product over Amazon/Wayfair or similar service provider:

Non-resident aliens are normally taxed only on income derived from US sources. US-source income that is considered “effectively connected” with a US trade or business. If you are one of those matches with any of the above classification for business doing in USA, you are liable for the followings as per Federal and State Income Tax Laws-

  • Register your business in USA
  • Apply for EIN/Federal Tax ID number for the business
  • Register your business for sales/use taxes in particular state/s
  • File your Sales and Income Tax Returns to IRS and particular state/s periodically 

Consequences for the non-compliance: 

  • Penalties and Interest on taxes due shall be imposed and keep building up over the period and that could lead to file for bankruptcy in USA
  • Any such non-compliance could lead to freezing business and/or bank accounts for the businesses till all dues are paid
  • In case of intentional non-compliances or omission assuming other factors involved personal liability could come on person-in-charge of the company (e.g. foreign national)
  • Practically such business and beneficiary/person-in-charge could fall in so call, black or observation list maintain and followed by Treasury department and FBI
  • Any person who willfully attempts in any manner to evade or defeat any tax imposed by this title or the payment thereof shall, in addition to other penalties provided by law, be guilty of a felony and, upon conviction thereof, shall be fined up to $100,000 ($500,000 in the case of a corporation), or imprisoned up to 5 years, or both, together with the costs of prosecution
  • In addition any such handling of the government notices and cases would incur lots of fees charge by the Accountant and Lawyers.

 

 

 

 

Opening A Company In The USA

Stella DC USA Business

Building a company of your own is not an easy task, specifically if it’s abroad. The US is a busy country and has so many races surviving there because of its acceptance towards young companies and startups. If you are living outside the US and wish to start a company in the US (either to open a US bank account and/or merchant account, open a physical US branch or any other thing), then this article has created this step-by-step resource to explain this process accurately, show you exactly what you need and how this article can assist you. You might want to learn that the term Incorporate Means to form a Corporation While the term Form an LLC means to form a Limited Liability Company(LLC) which is further explained below. Business entities are asked to get an Employer Identification Number (EIN)

 

To create a Corporation (Inc) in the United States, we will firstly file documents called Articles of Incorporation or Certificate of Incorporation as a legality. If you’re looking for an LLC version of these documents, they are called Articles of Organization or Certificate of Organization (these documents may have different names depending upon whatever state you select). Also, the term entity is picked to describe a business that is not an individual and can apply either to a Corporation or an LLC both. You can be opening your company in the US from India as well.

If you’re wondering how to start a business in California then you may search for the appropriate idea first by looking into the area’s most sold stuff, have constructive plans and register your business. To Register a business name in Texas hire a professional Registered Agent for this and File the Articles of Organization with the Texas Division of Corporations.

 

Here are the steps you may require to set up in any city of the US.

Choose Which Type of Business Entity you want to Form: Corporation or LLC

Pick the State to Form Your Corporation or LLC

Fill the Requirements to Form a Corporation or LLC in the USA

After Forming a US Corporation or US LLC

Maintaining Your US Corporation or US LLC

 

  1. Choose Which Type of Business Entity you want to Form: Corporation or LLC

 

If any of the owners of the company (known as Shareholders of Corporations and Members Of LLCs) are not officially US Citizens, then there are options for you to form either a Corporation (also called a C-Corporation Or Regular Corporation) or an LLC. There’s one more entity type known as S-Corporation but that entity requires all shareholders to be US Citizens.

 

  1. Pick the State to Form Your Corporation or LLC

 

In the US, Corporation or LLC can be formed in any of the 50 States of the country or Washington DC. Whatever state you choose will be depending upon why you are forming the company. Some of the US states are more business-friendly or international-friendly than others, specifically Delaware, Nevada and Wyoming. Registering a company in Delaware is comparatively more feasible than other states.

 

  1. Requirements to Form a Corporation or LLC in the USA

Once you’ve concluded what type of company you’d like to form and which state you will be forming the company in, there are only a few basic requirements you might need.

These include:

  1. Choose your Company a Name
  2. Get a Registered Agent
  3. Arrange Names and Addresses of the People/Companies Involved (Officers, Directors, Members, etc.).
  4. Federal Employer Identification Number (not necessary)
  5. Apostille or Certificate of Authentication (not necessary)

 

  1. After Forming a US Corporation or US LLC

 

After your Corporation or LLC has been filed, there are other tasks you might want to do typically depending upon your requirements and the purposes of your US company.

  1. Arrange a US Physical Business location or Virtual Office address
  2. Get a US Bank Account for non resident
  3. Get a Bank Account in Your Home Country as well
  4. Get a US telephone Number
  5. Construct a Website and Company Logo
  6. Get a US Merchant Account (to Accept Credit Cards)

 

  1. Maintaining Your US Corporation or US LLC

 

Maintaining your Corporation or LLC in the US is fairly easy, you might only need to:

  1. File an Annual Report.
  2. Maintain a Registered Agent.
  3. Meet Your Home Country Requirements punctually
  4. Pay US Taxes following legal requirements (if required).

 

  1. International Tax Planning – to ensure all domestic and overseas tax and legal compliances related to disclosure and tax filing/payments are done properly with prior planning under FATCA, FEMA, IRS/RBI, DTA treaties, Transfer Pricing etc

The United States has a complex system of federal, state, and local levels of taxation. And when surveyed it looks the Organization for International Investment, CFOs of US subsidiaries of foreign businesses agreed that improving the tax system is the number-one action that would strengthen the United States as an investment location. So we think we can comfortably say that the US tax system is one aspect of doing business in the United States that requires careful navigation. Further, current debates regarding US tax policy and reform and ever-evolving legislative activity combine to create a challenging environment for companies doing business in the United States¾but also unique opportunities. We have experienced in taxes for non US Companies with Substantial US operation,  particular challenges and opportunities . It is often frustrating, but always rewarding, to overcome the confusion and complexity, and identify the critical insights that will enhance business performance and effectively manage risk. OCP Biz has extensive experience in regard to US operations of foreign businesses to provide a broad understanding of the basic tax implications of business operations in the United States, as well as to offer helpful observations into the tax consequences for foreign companies.  We believe we can serve you better and save lot of hassle to do proper tax planning.

Doing business is foreign company can become a piece of cake, if you comply with all legal compliances. As professional services, we provide you A to Z service from Opening a company in USA to filling all your taxes. We give you advices as and when required. Need a tax expert advice please contact us info@ocpbiz.com