COMMERCIAL BUSINESS

WHAT IS A TRADING ENTERPRISE?

Legal Definition

According to Clause 1, Article 3 of the Commercial Law 2005:

“Commercial activities are activities for profit-making purposes, including the purchase and sale of goods, provision of services, investment, commercial promotion, and other profit-making activities.”

Thus, a trading enterprise is a business entity that engages in commercial activities such as buying and selling goods, providing services, investing, and promoting commerce, with the primary goal of making a profit.

Characteristics of a Trading Enterprise

– Primary Objective: Profit generation through commercial activities.

– Scope of Operation: May operate domestically or internationally, depending on the scale and business sector.

– Legal Forms: Can be a private enterprise, limited liability company, joint-stock company, etc., established and operating under the provisions of the Enterprise Law 2020.

Practical Examples

– KOL or Influencer: Operating an online store selling imported fashion or cosmetic products.

– Freelancer: Providing graphic design, programming, or online consulting services.

– Recent Graduate Entrepreneur: Establishing a company specializing in delivery and logistics services.