CHAPTER II.- COMPANY OVERVIEW
2.2 Business/Revenue model
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Payment records of income tax, municipal and National Tax Registry
Photocopy of the company’s incorporation documents
Establishing a branch office in Taiwan subjects the head office in Honduras to the jurisdiction of the Taiwan courts. The other founding partner will be appointed as designated agent and branch manager.
The Department of Commerce of Ministry of Economic Affairs (MOEA) reviews applications for company registration of branches of foreign companies in Taiwan.
Registration of a branch office in Taiwan takes around 7 to 9 weeks. Additionally, importing and exporting licenses must be issued by the Bureau of Foreign Trade (BOFT) and the business entity must comply with the Statute for Investment by Foreign Nationals.
There is no minimum requirement for establishing the branch office, but the capital still needs to be examined and certified by a local Certified Public Accountant (CPA) and cover at least the incorporation cost.
2.2 Business/Revenue model
With globalization nowadays, people need to think outside their comfort zone and seek new opportunities elsewhere. That’s where Guanxi Trading LLC can help: we will help bridge the trade process between Honduras and Taiwan.
Guanxi Trading LLC will help buyers in their search for their desired product overseas.
Once we have found a suitable and reliable partner, we will purchase the products and ship them off to the foreign country, where we will finally deliver the products to the buyer.
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We are a market oriented company; thus, we organize ourselves and our activities according to the needs of the host countries; in this case, Honduras and Taiwan, rather than focusing on a single line of products.
Because of the difference in languages between both countries, and being that most small to medium business owners are not proficient in the English language, much less in Mandarin Chinese or in the other hand Spanish, Guanxi Trading LLC is the suitable business partner for handling a company’s business abroad.
Guanxi Trading LLC enables companies to enter new markets with their most competitive products. With this, we give suppliers the chance to exploit other business opportunities therefore, increasing their sales. With this increased demand, they can take advantage of the economies of scale in production.
By working with us, producers and manufacturers also benefit from our networks, as well as from our expertise in areas such as finance, technology, logistics and procurement, marketing and legal affairs.
On the other hand, the buyers we work with get full reassurance that their products will be in compliance with the agreed terms of quality and delivery. We serve as a one-stop shopping facility, searching hastily for the client’s desired merchandise. We will prove to customers the tradeoff between purchasing through us and them handling all the tedious and costly business transactions themselves.
Our business model will be focused on bootstrapping, which will focus to the greatest extent possible to use other people’s resources, for example, from the advanced payment received from our customers, we will use this to pay the suppliers whenever advanced payment is demanded.
With focus on maximizing the value of our service offering, our business model will depend tremendously on an online collaboration platform that brings us together with potential and recurrent buyers who wish to purchase products in Taiwan or Honduras. This
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is done through Private Technology Exchange (PTX), which is an online model that permits execution of trade transactions and information sharing regarding products, demand, availability, etc.
Detailed Process:
1. When a buyer spots a product from our online catalog, he creates an online account in our website.
2. He then selects the quantity from our pre-established quantity lots, which were established in conjunction with our suppliers.
3. If the client needs any additional requirements, he can let us know through our webpage or contact us directly.
4. After the quote request is issued, an automatic confirmation is sent to the buyer and to our team of executives.
5. We immediately look over the order and contact the supplier to know availability.
6. We contact our network of shipping lines and later let the buyer know the estimated departure date, lead time, shipping arrangements, payment details, etc.
7. If approved by the buyer, we go ahead and process the transaction. Partial payment will be required in advance from our buyers and their credit terms will be revised in the future.
8. We purchase the product locally and then handle all the shipping arrangements for sending the products to the foreign country. Payments to our suppliers will be executed through local bank transfers.
9. As importers, we then coordinate with our customs agent the receipt of the goods.
10. After the goods have been cleared from customs, we issue another invoice and coordinate the final delivery of the goods to the buyer.
All new buyers will be required to make payments in advance. Later, depending on the purchase volume, credit risk and payment behavior; we can change the buyer’s payment terms to a period which is favorable for us and accepted by our supplier.
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Our website will also provide a tracking service, so customers can see at any time the status of their order. As well, a payment tracking service will also be available on our website so buyers easily have access to an up-to-date balance of their account.
Guanxi Trading LLC seeks to reduce transaction costs through economies of scale and in making the most efficient use of our capital and of that of our customers. For this, we will work on seeking exclusivity based agreements with manufacturers in order to obtain a secure position in the foreign market.