#1 Types of trading companies by DavisThompson 02.11.2022 07:28

here are two primary types of trading companies:

B2B (Business-to-Business) Trading Company
B2C (Business-to-Consumer) Trading Company

B2B (Business-to-Business) Trading Company
The most extensive use of trading companies is as intermediary trading companies or B2B companies. These businesses usually 1) specialise in a certain range of products or services, which they purchase from suppliers or merchants; 2) broker the products or services (i.e. add value and commission to the transaction); and 3) coordinate the logistics of delivering these products/services to the purchasing company (i.e. arranging the delivery and providing their own or affiliated transportation services).

B2C (Business-to-Consumer) Trading Company
B2C refers to selling products or services to the end client, and so the final destination of the trading company’s goods is usually a shop.

Planning a commercial structure
When planning a B2B commercial venture, consider the following:

Taxation: The corporate income tax of your chosen jurisdiction plays a large role in structuring your business. You will also need to think about withholding tax, payroll requirements, VAT registration (if based in the EU) and other tax issues.
Banks: A fast, easy to reach, convenient and trustworthy bank is essential for any commercial enterprise. Bank fees, commissions and especially the speed of transactions can be crucial to a trade. We therefore recommend that you seek professional advice from us when choosing a bank for your company.
Legal and Accounting Requirements: While a prestigious business location can be important to your trading business, some of the most respected jurisdictions place excessive demands on business owners. Contact Confidus to ensure you are aware of all legal and financial obligations before registering your company.
When planning a B2C trading company:

If you intend to sell your products or services locally, you will need to develop strong relationships with local consultants, real estate agents, accountants and other service providers within the jurisdiction where your business will operate. Confidus will help you with all local arrangements including:

Find a location for your office, shop or warehouse
Personnel search and recruitment
Find a local accountant
For import/export operations, Confidus can also assist with customs clearance, warehousing arrangements and document preparation (sales contracts, CMRs, export declarations, etc.).

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