• Commission for international trade

I have brokered a trading deal for baby diapers from china to nigeria. The company in China will be shipping directly to the buyer in Nigeria. However, the company in China has agreed to provide a commission to me which would be around 25000 rupees a month. Currently I do not have a registered company in India. Please advice if I need to register a company to accept this payment, and if so what kind of company
Asked 1 year ago in Business Law from Chennai, Tamil Nadu
No, need for registering a company. You seem to have been functioning as a freelance service provider for which you receive commission than a salary. 
For this you can continue the same keeping your individual identity and no company is required to be formed.
Devajyoti Barman
Advocate, Kolkata
5839 Answers
63 Consultations
4.9 on 5.0
1) it is not necessary for you to register a company for accepting commission.  

2) you can accept commission in your individual name also 

3) if you want to form a company in India follow the procedure laid down for formation of company in India 

4) you can contact a local lawyer or CA in this regard 

5) have your contract for receipt of commission vetted by a local lawyer  
Ajay Sethi
Advocate, Mumbai
24710 Answers
1323 Consultations
5.0 on 5.0
1. If you have signed an agreement with the Chinese company wherein it has agreed to pay the commission to you on a monthly basis the agreement can be enforced through the court. This does not require you to incorporate a company.

2. However, if the agreement mandates that you incorporate a company to meet the eligibility to get the monthly commission then you must comply with it.
Ashish Davessar
Advocate, Jaipur
18828 Answers
472 Consultations
5.0 on 5.0
For the purpose of  showing the source of your income you may have to produce the details of the source, hence it is better to open a trading company specifying the transactions and agreements thereon with both the sides so that your activity can be painted with legal color. 
You can even register yourself as a broker on commission basis or a brokerage company on proprietorship basis as against the terms agreed between all the parties.  
T Kalaiselvan
Advocate, Vellore
15249 Answers
139 Consultations
5.0 on 5.0

Ask a Lawyer

Get legal answers from top-rated lawyers in 1 hour. It's quick, easy, and anonymous!
Ask a Lawyer

Business Lawyers

T Kalaiselvan
Advocate, Vellore
15249 Answers
139 Consultations
5.0 on 5.0
Ajay Sethi
Advocate, Mumbai
24710 Answers
1323 Consultations
5.0 on 5.0
Ashish Davessar
Advocate, Jaipur
18828 Answers
472 Consultations
5.0 on 5.0
Krishna Kishore Ganguly
Advocate, Kolkata
12716 Answers
261 Consultations
5.0 on 5.0
Devajyoti Barman
Advocate, Kolkata
5839 Answers
63 Consultations
4.9 on 5.0
Nadeem Qureshi
Advocate, New Delhi
3628 Answers
137 Consultations
4.9 on 5.0
Shivendra Pratap Singh
Advocate, Lucknow
2871 Answers
43 Consultations
4.9 on 5.0
Rajgopalan Sripathi
Advocate, Hyderabad
916 Answers
55 Consultations
5.0 on 5.0
Lakshmi Kanth
Advocate, Hyderabad
262 Answers
2 Consultations
4.8 on 5.0
Shashidhar S. Sastry
Advocate, Bangalore
1255 Answers
61 Consultations
5.0 on 5.0