Main object of trading of company

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Sweta Agarwal (Querist)
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26 March 2012 I am incorporating a company and the main object of such company is trading of any types of goods, Recently company wants to act as distributor of any telecom company and later on it may deal in FMCG.

Can we mention following object or it should be specified?

"To carry on the business of buying, selling, reselling, importing, exporting, transporting, storing, developing, promoting, marketing or supplying, trading, dealing in any manner whatsoever in ALL TYPE of goods on retail as well as on wholesale basis in India or elsewhere."

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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26 March 2012 "in ALL TYPE of goods" will not suffice.

Sweta Agarwal

Sweta Agarwal (Querist)
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26 March 2012 Sir,

Can you provide me main objects in this regard

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
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03 August 2024 When incorporating a trading company, it’s important to define the main object clause in a way that reflects the broad scope of trading activities while allowing for flexibility to adapt to various types of goods and markets. Your proposed object clause is broad and allows for various trading activities, which is good for flexibility. However, it might benefit from some refinement to ensure clarity and completeness.

Here’s a revised version of the main object clause for a trading company, incorporating your needs for flexibility in dealing with different types of goods, including telecommunications and FMCG (Fast-Moving Consumer Goods):

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**"The main objects to be pursued by the Company on its incorporation are:**

1. **To carry on the business of buying, selling, reselling, importing, exporting, transporting, storing, developing, promoting, marketing, or supplying any type of goods, whether on a retail or wholesale basis, in India or elsewhere.**

2. **To act as a distributor, dealer, agent, or representative for any company or brand, including but not limited to telecommunications companies, FMCG products, and other goods and services.**

3. **To engage in the trading, dealing, and distribution of telecommunications products and services, including but not limited to mobile phones, accessories, SIM cards, and related equipment.**

4. **To trade in and deal with FMCG products, including but not limited to food and beverages, personal care products, household goods, and other consumer goods.**

5. **To establish, operate, and manage retail outlets, showrooms, and distribution centers for the sale and distribution of goods and services.**

6. **To undertake marketing, promotional, and advertising activities related to the trading and distribution of goods and services.**

7. **To enter into agreements, contracts, and partnerships with other businesses, entities, and individuals to achieve the company's objectives and expand its trading operations.**

8. **To carry out all other activities related to or ancillary to the above objects that may be necessary or conducive to the attainment of the company's goals.**

**In addition to the above main objects, the Company shall have the power to engage in any lawful activity that is related to or ancillary to its primary business as described above."**

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### **Key Considerations:**

1. **Broad Scope with Specificity:**
- The clause is broad enough to cover a wide range of trading activities but also specifies particular sectors (telecommunications and FMCG) to ensure clarity in your business focus.

2. **Flexibility:**
- This wording provides flexibility for the company to diversify into different types of goods and services as business opportunities arise.

3. **Regulatory Compliance:**
- Ensure that the object clause complies with local regulations and industry standards relevant to trading and distribution.

4. **Consultation:**
- It’s advisable to consult with a legal expert or company secretary to finalize the object clause and ensure it meets all legal requirements and accurately reflects your business intentions.

This approach will help in establishing a clear and comprehensive main object clause that supports your trading business's immediate and future needs.

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