A contract with a foreign partner is not always associated with the execution of a large number of complex documents.
In large companies where import or export contracts are not uncommon, specialists in foreign economic activity or even a whole department does the job. Many businessmen consider this area of knowledge confusing and complex, although this is not at all the case.
Any export of goods or services to another country is a foreign trade operation. Under most laws, such transactions are subject to currency control. This means that it will be necessary to provide transaction documents to the servicing bank. Depending on its type, there may be several options.
A contract
It is essential for large deals. If the product / services are provided on a systematic basis, a contract will also be required. You can’t do without a contract if, in addition to registering the fact of sale, you coordinate technical tasks, specifications, quality control schemes with the client.
At the currency control, the bank checks the contract for legality, and questions to the business may arise, even if the transaction is absolutely legal. To avoid this, it is necessary to insert into the contract:
- customer information and details of the parties (it is worth checking the correct spelling of names in trade registers);
- the subject of the agreement (the wording “consulting services” without details will be considered suspicious);
- the value of the transaction (so that it is not considered unduly overstated, it is necessary to attach the calculations and the pricing procedure);
- the responsibility of the parties (a contract for 100 million without a description of the acceptance process / quality assessment of the goods looks suspicious);
A contract account
This is a simplified version of the contract, which is suitable if additional documents are not attached to the transaction (technical specifications, specifications, etc.). At the same time, the contract account is suitable for transactions on an ongoing basis.
Another convenience of this form is that you do not need to exchange signed originals of the document, as is the case with a regular contract. The invoice is signed by the contractor, and the customer accepts it, making the payment. The contract account is also subject to currency control and is not suitable for large transactions.
An invoice
The simplest version of a document for processing a foreign economic transaction is an invoice. If the contract is a one-time and does not contain complex conditions, then foreign exchange control, as a rule, can be passed by invoice. An invoice is especially convenient for transactions for the provision of services.
Unlike the contract, invoices of the work performed are not required to be attached. In order to avoid unnecessary paperwork, include this in its text: “The fulfillment of the listed conditions of the contract (in full, in due time and with appropriate quality) is confirmed by full or partial payment of this invoice by the customer”. Then payment of the invoice will replace the acceptance certificate.
