International Trading Company
International trading is the purchase of goods in low cost production countries e.g. China, India, Thailand etc. and selling them to distributors in high income market areas e.g. USA, Europe, Australia etc., where the actual trading operation may take place from a third country. The goods bought by the trading company are sent directly from the country of origin to the country where they are to be sold.
Significantly improved profits can be achieved by forming a company which will be used as a trading medium for buying, shipping, and selling the goods.
Most of the profits will be retained by the new trading company that would otherwise be lost in taxation to authorities at the original home location of the trading operation.