Are you a manufacturer or a trading company?

We have been asked this question many times, because our business name has the word “Trader” in it, some customers mistakenly consider us similar to trading companies, which is not correct. A person who is doing business from some good time can understand this, but for new bees or beginners, an explanation is needed:-

We are a manufacturing company. We started our exports in year 2005, before that we use to manufacture the instruments and supply locally to other companies. We are basic manufacturer of these instruments and we have multiple productions lines.

In Pakistan, there are no hard rules regarding choosing the name of an enterprise. Government provides freedom to choose business names as convenient, unless it does not conflict with any already registered brand or trademark. You may even find the proprietary owned businesses with names like “Name International” and “Name Incorporated”, which are certainly misleading terms.

As a positive aspect, having the word “Traders” in company name automatically provide the impression that a company may well run multiple businesses under the umbrella of the same company.

Many countries, including UK laws have this provision that a company can have such a name including the word Trader in it. All they need to make sure it that their name must not conflict with any pre registered business, brand or trademark. And the second thing must be considered is that if a company is running multiple business under one trading company, they must mention the name of mother company in all places of reference. For example, if ABC Trading is also trading as XYZ, then they must make it clear at their premises, paperwork and websites displaying, “ABC Trading as XYZ“, or as “A Product by ABC Trading”, etc.

In order to confirm these facts, please contact the Trade Development Department of Pakistan.

As general evaluation, if a company is a manufacturing firm, they will manufacture any kind of product as per buyers specifications, including necessary changing is their existing products. Whereas, a sole trading company will always hesitate to make something new, and try to avoid committing on any change in the existing products / designs. They will insist on selling pre designed items and already stocked products.

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