Export organization: special new legal (company) entity form is required

Export organization: special new legal (company) entity form is required


I touched on export organization on several blog posts
http://www.sovecomo.ru/category/Export

One can often see that many very export oriented companies like Nestle, LVMH and Kettering (French fashion conglomerates of many brands) condensate many brands below a single umbrella, even if single brands retain their identity. This facilitated the entry into new markets, because of their critical mass.

I was thinking why several independent companies could not do the same. While in a home market they fiercely compete, in international markets they struggle because they are just too small.

So, if they congregated into one organization solely for export? yes, surely it would lower costs of shared offices and sales reps in foreign countries.

Since export is very important to many countries, it would be useful to create a new type of company entity congregating many or most industry players into one organization, e.g. called EXP Ltd. This type of company entity should only be allowed to do foreign sales and should have a lower taxation.

This is also mirrored in the Sovereign Economic Model, which among other de-taxation policies, proposes to tax exports 50% less.

A more conveniently organized and less taxed export activity would benefit both the companies and the country itself.

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