Real trading companies collect market demand and supply according to market rules and make more reasonable distribution. Resources can be allocated to meet people's needs. It also realizes the commercial utilization and commercial reputation obtained through resource allocation. 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.
Extended information trading companies generally refer to companies engaged in trade 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.
From the perspective of international taxation, it is another way for multinational taxpayers to set up trading companies in international tax havens to avoid international taxation. The typical model of multinational taxpayers' tax avoidance by establishing trading companies is that a product production company in country A sells its products to a trading company in country B, and then the trading company in country B resells its products to customers in country C, leaving some profits from them, so as to avoid part of the income tax that country A should bear. ..
Reference Trading Company _ Baidu Encyclopedia