What does a trading company do?

Trading companies generally refer to companies that deal in goods and services. Its business scope includes business activities such as buying and selling, and it can also engage in activities as a broker or agent. However, no matter how a trading company engages in business activities, its function is only to issue invoices.

Trading companies organize commodities, but do not produce commodities, which is an intermediate link in commodity circulation. Earning the price difference between upstream and downstream of commodity circulation often exists as middlemen! It buys goods from upstream manufacturers and then transfers them to downstream buyers or consumers to earn the difference profit. You can also engage in consulting services or technology. There are business channels and no production capacity, that is, looking for factories to produce and process and earn the price difference in the middle.

Extended data:

Requirements for registered capital of trading company:

The registered capital of a wholly foreign-owned company in China is determined according to the Company Law of China, the requirements of related industries and the ratio of registered capital to investment. According to the Measures for the Administration of Foreign Investment in Commercial Fields (Order No.8, 2004 of the Ministry of Commerce), the registered capital of a foreign-invested commercial enterprise can at least meet the relevant provisions of the Company Law.

The minimum registered capital of a wholly foreign-owned international freight company varies according to different modes of transportation. The minimum registered capital of a company engaged in road transport agency is RMB 2 million, that of a shipping agency is RMB 5 million, that of an air transport agency is RMB 3 million, that of a production and trading company is RMB 500,000, and that of a design consulting company is RMB 654.38+10,000.

Extended Link: Trading Company-Baidu Encyclopedia