What is Trade Service Company? And what services does it provide?


This article answers the question of what is a commercial services company and what services does it offer. The steps of setting up and registering a commercial services company and the names of commercial services companies in Tehran and Iran are described.

Trading services are very important to many companies in the field of international trade and business, and that is why trade service companies are significant. Trade service companies have specific responsibilities both in Tehran and in the other parts of Iran and the world. What is a trade services company and what services does it provide and what are the benefits of using it are the topics that we will discuss in the rest of this article of Sindbad. There are also a list of trade service companies at the end of this article.

What are the Trading Services?

As we know presence in international markets, especially exports and imports, will bring many benefits but ti doesn’t mean that there are no complexity there. Although presence in international markets can be very profitable, but if the trader has not enough information in this field, he suffers lots of losses. One of the ways to enhance your information and limit your personal responsibility in this area is using the services of trade companies.

Generally, any activity that takes place during the exchange of various goods, services, and etc. (from the production stage to reaching the consumers) is called trade. For more information about trading services refer to the article named “What are Trading Services and what are their types?”

What is a Trade Service Company?

There are different definitions of trade Service Company. Generally, a trade services company is a company that is formed and registered between two or more people in order to earn a profit under a special name, under the name of one of the companies mentioned in the commercial law, in compliance with the relevant regulations.

On the other hand, trade service companies are the companies that are completely private and work independently, in order to export and increase sales, to introduce their products in foreign and international markets.

How do Trade Service Companies work?

How a trade service company works can vary depending on the type of activity. For example, trade service companies that work in the field of export and import sign a formal contract with small production companies. Based on this contract, they offer all or part of their products in international markets. Whether or not this contract is exclusive depends on the agreements between the two parties.

Small economic or production companies that are working with these companies benefit in some ways. First, using the experience and skills of these companies, they can bring their products to the global market. The companies that want to import a product to the country but do not have special experience and knowledge in this regard, can get help from trade service companies and import the products they need.

The activities of trade service companies in the field of exports are such that they often have sales networks in global markets. They may have warehousing in those countries where they work. These companies can also have foreign intermediaries and producers in those countries so they can help them if needed. They enter into one-year, two-year, three-year or more or less contracts with the companies of these producers, which are their subsidiaries.

A trade service company which works in the field of export and import tries to identify its target market and all the quantitative and qualitative features and information about the product it offers. It does its best efforts to train the marketers of each product and it have all the necessary documents for export and import. Trade service companies may agree to coordinate shipping steps as agreed, or even accept the risk of non-payment and insurance for the product.

Trade Service Companies of Iran and Tehran

There are many companies with different specializations in the field of providing trading services in different countries. By the help of Sinbad it is possible to establish direct communication with companies that are experienced in trading services and have sufficient knowledge. You can refer to this section to get information about trade service companies.

What are the services of Trade Service Companies?

The most important services of trade service companies can be summarized in the following cases:

  • Buying or acquiring any movable property for sale or rent
  • Shipping by land, sea or air
  • Brokerage or real estate operations such as facilitating real estate transactions and things like that
  • Carrying out all activities related to the establishment of any factory
  • Auction operations
  • Execution of various types of banking exchange operations
  • Holding public exhibitions
  • Transactions between traders or non-traders
  • Marine and non-marine insurance operations
  • Carrying out all activities related to shipbuilding, ship trading and domestic or foreign shipping

How can we register a Trade Services Company?

An export and import company is in fact a special joint stock company or limited liability company whose work is the sale and purchase and export and import of authorized commercial goods and other activities in the field of trade. In order to complete the affairs related to commercial companies, after registering the export and import trading company, obtaining a commercial card will be required.

Registering a trade service company has its own conditions. You can do the company registration process yourself or leave the registration and commissioning to companies specialized in this field. Anyway, the whole process of registering a trade services company can be summarized in the following steps:

  1. The first point about trade service companies is that these companies must consist of at least three members and two inspectors. That means it must have at least five members in total. For a limited liability trade services company, the number of members should not be less than two.
  2. They have to start working with a certain capital. You can follow up to find out the minimum amount of capital specified.
  3. On the other hand, at least 35% of the total capital of the company must be paid in cash. In trade limited liability companies, the total capital is either paid or pledged to pay.
  4. The process of registering a trade services company will take about three weeks.
  5. A degree is another condition for registering a commercial services company that should not be less than diploma for the CEO.

What is commercial card?

This card is associated with trading activities and services. In other words, any activity within the framework of the laws of the country requires a specific type of license from the relevant organization and commercial card is in fact a license that any natural or legal person by receiving this type of card after registering an export and import trade company, can do business according to Article 3 of the Law on Regulations in the field of import and export trade.

The Last Word

Trade service companies work in internationally and can be very useful for many small and large companies due to the services they provide. This article was about topics such as what a trade service companies are and what services they provide, as well as the introduction of trade service companies in Iran and Tehran. We will be glad if you share your ideas in this regard with us.



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