Introduction
As per the reports by Future Market Insights, the legal services industry worldwide is estimated to garner over $627.12 billion by 2032!
Along with other contributing factors, it’s safe to say that online legal technology platforms have acted as critical enablers in expanding legal services internationally. Given the luxury of transparency, expertise, prompt service, and affordable cost, online legal platforms are nothing more than a blessing to international traders.
This is why legal web services are so beneficial. With a few mouse clicks, you may obtain legal papers, locate a nearby attorney, and request legal advice on any topic.
Why international traders require online legal platforms?
From taking out clearances for international trade to signing contracts until the consignment delivery, there’s always a need for all the transactions to be backed by legal authority. In these cases, online legal platforms provide easy access to and review relevant legal documents, such as import and export regulations, tariffs, and trade agreements.
Here are some key legal considerations for expanding a business internationally and tracking the business laws that will apply to a particular industry:
Compliance with Local Laws:
Different international traders must adjust business operations to comply with all the federal, state, and local guidelines and regulations depending upon the type of business and the geographical location. This includes setting up a legal entity, obtaining necessary permits and licenses, abiding by labour laws, and complying with tax laws. These legal platforms aid businesses in complying with international trade laws and regulations, such as anti-bribery and anti-corruption laws, trade sanctions and embargoes, and anti-money laundering regulations. In addition, they assist in incorporating the business or forming a legal entity in different countries by guiding compliance with local laws and regulations related to business formation and operation.
Protection of Intellectual Property:
It is indispensable for businesses to safeguard their intellectual property in the target country where their business operates. This includes registering trademarks and patents and enforcing your rights in the event of an infringement.
Data Privacy Laws: Different countries have different data privacy rules and regulations. Some allow businesses to share the personal information of their citizens visiting a specific website, while others are more restrictive. While the security of citizens is essential, it is important to note that this information helps provide better services and products in that particular country. One of the most restrictive countries in these cases is China, which excludes tech giants and global companies from sharing its citizen data, which makes it difficult for the countries to innovate on their products as they don’t know what the evidence is and what it expects from them.
Contractual Agreements: The international expansion of different businesses requires you to have written agreements with any partners, suppliers, or distributors. Therefore, you must get agreements reviewed by a lawyer to protect your business interests and safeguard their legal validity.
Dispute resolution: Despite all legal backing, sometimes it becomes an avoidable situation to avoid disputes arising during international trade, such as contract breaches, intellectual property infringement, and non-payment. They navigate selecting appropriate alternative dispute resolution methods, such as mediation and arbitration, and representation in court.
Customs and import/export regulations: For expanding their businesses in new countries, international traders must follow the different import/export and customs regulations of the countries where their businesses are situated for smooth organization operations.
Why online legal platforms?
Online legal platforms help clients find the best lawyers based on time constraints, budget, style of legal proceedings, and more. These platforms are distinct in services compared to traditional legal service providers that are geographically and knowledge-restricted. These platforms help streamline the legal process, reduce costs associated with traditional legal services, and offer legal services in multiple languages, which can be particularly useful for international transactions. Businesses can use offshore jurisdictions to benefit from secrecy legislation and take advantage of the global marketplace by accessing a range of professionals from other countries.
Going global: Things to consider for international traders
If you are a company that is looking forward to becoming an international trade and expanding beyond the territories of your current jurisdiction, then there are various things that you are required to consider, especially from a legal standpoint, which can be understood through the assistance of online legal platforms and the lawyers dealing on such platforms:
- Labour and employment law – You would be required to hire subcontractors overseas, whose employment shall be subjected to the rules and regulations of the foreign jurisdiction. Therefore, you must consult legal counsel, which can be done through LegaMart, an online legal platform, to help your company deal with the required compliances and risk mitigation strategies.
- International trade compliances – Cross-border business transactions also need to deal with important concepts of international trade, mainly the national security and economic interests of the country. This applies to the imports, exports, and sanctions regime of the particular country, especially for understanding the off-limits countries (such as sanctions on countries like Iran and Russia).
- Corporate structure – Setting up a company overseas or opening a subsidiary or branch in another country requires understanding important concepts of business carrier costs, capital requirements, and tax compliances. Therefore, online legal platforms can provide the required knowledge to set up your company in another jurisdiction.
- Taxation – Before expanding to a particular foreign country, ensure that you have carefully examined whether the target country has the appropriate tax treaties with your domestic jurisdiction and carefully understand the tax compliances required to be completed by you.
- Finances – While conducting business in another country, you must understand the foreign currency exchange controls. The appointment of a legal advisor or the assistance of online legal platforms are the best ways to understand compliance requirements smoothly.
- Termination of business – Before starting with a company in a foreign jurisdiction, ensure that you already have an exit strategy in place, keeping in mind the possibility of things not working out. Closing an international venture can be troublesome and expensive, with many government approvals and tax compliances being a part of your to-do list. Therefore, ensure that you have everything in place, in accordance with the laws of the foreign jurisdiction, through the assistance of online legal platforms.
Few examples of solutions for international traders that online legal platforms can bring to the table
1. Import and export regulations in Mexico: An international trader wants to export their products to Mexico but needs to comply with customs and import/export regulations, such as tariffs, duties, and import/export licenses. An online legal platform can guide compliance with customs and import/export regulations in Mexico, as well as compliance with regulations related to trade sanctions and embargoes.
2. Resolving disputes in the UAE: An international businessman has a dispute with a business partner in the United Arab Emirates over a contract breach. An online legal platform can offer assistance with resolving disputes and guide alternative dispute resolution methods, such as mediation and arbitration, and representation in court.
3. Drafting an international contract for a joint venture in Singapore: An international businessman who wants to enter into a joint venture with a Singaporean company would need to draft a contract that complies with Singapore law.
4. Breach of contract in the US: An international entrepreneur who enters into a contract with a foreign partner may face a dispute if one party fails to fulfil its obligations. For example, an importer may refuse to pay for goods that do not meet the agreed-upon quality standards, leading to a breach of a contract dispute.
Understanding the main principles and laws of international trade through online legal platforms
Before engaging in international trade law, you are required to take note of 4 main aspects of international trade, which are also known for being the pillars of international trade law. Not following them can result in unfair trade practices. Hence, the assistance of online legal platforms can help you understand the case-specific requirements of international trade and how to ensure that your practices do not come under the head of unfair trade practices. The 4 main principles of international trade are:
Most Favored Nation (MFN) Principle
The MFN Principle is based on the idea that all World Trade Organization (WTO) member states must treat their trading partners equally. Therefore, if the same products are being imported/exported from country X and country Y, then a state cannot give preferential treatment to the goods of one state over the other. This principle has been included under Article I of GATT (General Agreement on Tariffs and Trade) to ensure that all WTO member countries subscribe to this idea. As of 2023, 167 countries worldwide are part of the WTO.
National Treatment Principle
This principle is another measure to ensure non-discrimination amongst the WTO member states, with a more domestic focus. According to this principle, it is the responsibility of the country to treat imported goods in the same manner as it treats domestically produced goods. Therefore, even if the domestically produced goods are the same as those imported from country X, the country cannot post more compliance requirements on imported goods to promote the domestically produced goods. Article III of GATT regulations governs this principle and involves the aspects of internal taxes and internal regulations.
Tariffs
Tariffs are import taxes that are made applicable to the imported goods of another country. If the taxes applied on the goods are equivalent to a certain percentage of the value of the goods, then such tariffs are known as “ad valorem tariffs”. On the other hand, if the tariff is applied on a per-unit basis, it is known as a “specific duty”. The WTO member countries already have an agreed system of negotiated tariff schedules, and hence, it is the responsibility of the member states to follow the same.
Quantitative restrictions ban
Quantitative restrictions are applied as “quotas”, a limit imposed on the quantity of imported goods. While implementing these restrictions is politically popular among many, they are not looked at favourably from an economic perspective. This is because it ends up disturbing the competition in the market, allowing domestic sellers to fix prices according to their choices.
These are some basic principles that are followed by states under international trade. Hence, if someone is planning to engage in international trade, it becomes vital for them to be aware of the ground-level international trade practices followed by a specific jurisdiction. The best way to know about these aspects is by engaging any online legal platform to understand your case-specific considerations, which can help you engage a lawyer with more ground-level experience to guide you further.
How can international trade lawyers on online legal platforms come to your aid?
With the assistance of International Trade Lawyers working at the local level in the foreign jurisdiction, you can expand your operations abroad more easily. This is because lawyers with relevant experience end up counselling you on relevant international trade rules and providing information on relevant compliances, internal investigations, voluntary disclosures, and representation for any enforcement actions for alleged violations.
Even domestically, international trade lawyers can assist you with representation before the appropriate authorities for import laws and remedies disputes. Further, they ensure that you continue having your required licenses or can secure any further certifications or licenses that might be essential for your business. Therefore, you can take advantage of their strong negotiation skills and relevant economic knowledge.
Conclusion
Finding a relevant lawyer becomes much easier when you can engage in an online legal platform. Today, online legal platforms not only provide you with the required legal knowledge but also help you connect with someone who has a good grasp of the required subject matter and can provide you with the relevant help keeping in mind your case specifications.
If you’re in pursuit of the perfect legal partner, look no further than LegaMart. It’s not just an online platform; it’s your gateway to a tailored legal connection. Engage with our seasoned professionals and dive into a conversation tailored to your needs.
If you’re a licensed lawyer specializing in international law, here’s your golden ticket! By joining LegaMart, you’ll be stepping into an elite circle of over 2,000 global legal minds. This isn’t just about joining a group; it’s about supercharging your practice and expanding your reach globally. Seize this opportunity with LegaMart and elevate your career.
Frequently Asked Questions (FAQs)
How is international trade regulated?
International trade is regulated by multiple organizations working across multiple countries. It depends upon a country to regulate the trade within their region by applying relevant rules and procedures within their domestic laws. However, if the country chooses to become a part of any international trade organization, such as WTO, its rules become binding on them. Hence, they are required to fulfil their obligations as per the specifications of the organization, both at the domestic and international levels.
What are international trade regulations?
International trade regulations are regulations which help in the governance of the exchange of goods and services across borders (including both imports and exports). Therefore, you must follow the requirements to exchange your goods and have the backing of the remedies for any potential disputes.
Are online legal platforms suitable for all international traders?
Yes, online legal platforms are suitable for all international traders, irrespective of which jurisdiction you come from or which jurisdiction you are targeting. This is because online legal platforms can provide ground-level services by engaging a wide range of experienced professionals from your target jurisdiction.
