A trading company buys goods and sells them on at a margin. It needs little manufacturing, but sourcing, cash and relationships decide whether it works. Here is how to start one.
Pick a proprietorship, partnership, LLP or private limited based on your size and risk. Get a PAN, open a current account, and complete GST and Udyam registration. Trading in most goods needs GST registration once you cross the turnover threshold.
Choose a product with steady demand and a workable margin, then find reliable suppliers or manufacturers. Order samples, vet quality, and start with small orders before committing larger amounts of cash.
Trading ties up money in stock and in credit given to buyers. Work out how much cash the cycle needs, keep a buffer, and match the credit you give to the credit you take so the business funds itself.
List your products where buyers search, respond to enquiries fast, and deliver exactly as promised. Most trading profit comes from repeat buyers, so a reliable first order matters more than chasing new leads every week.
Post your requirement free and get quotes from verified Indian suppliers. Run the whole deal, from enquiry to payment, with the free IndiaCRM app.
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