The government of India is making many efforts to ensure that India becomes a key element of global trade by 2020. One of the things that can help in ramping up India’s stronghold in the world of global trade is the rise of importers and exporters in the country. So, the government has launched many initiatives to make global trading easier for Indians. If you have always wanted to have an import-export business of your own, then you are on the correct page. Here you can know how to start an import-export business.
Starting such a business has many advantages. First, you have to pay only little upfront costs, second, you need to learn only a few basic rules and third, you can experiment with the products you want to import or export until you find the one with maximum potential.
Once you decide what kind of goods you want to export or import, you might have this question in mind- how to get an import-export license. You should know that you don’t need a license but an IEC to export from India or import to India. IEC is a 10-digit number that is granted by the Directorate General of Foreign Trade (DGFT). Any Indian entity that wants to try its hands at international trade can apply for the IEC. Here’s how to do it properly.
If you are unfamiliar with the online world, you can get IEC from a regional or zonal office of DGFT that has jurisdiction over the location of your business. The employees there will explain everything and help you to get an IEC quickly.
Online Method
In case you want to seek IEC via online method, you just need to file an application at dgft.gov.in, attach the required documents, and also pay a small fee of INR 250.
Decide a Category
Before applying for IEC, make sure that you have decided on your products and their category. You will need to apply according to the category your products belong to. You can always seek additional categories, but you will have to pay a different fee for every category.
Register the Firm
If your firm is not registered, you will need to get it registered. It’s your choice whether you want to register it as a company, an LLP, a partnership, or a sole proprietorship. It is a good idea to include the word exports or imports in your firm name to make it catchier. For instance, Alan Exports.
Do EDC Registration
It is also vital for you to register the company with the nearest seaport or airport.
The documents you need for IEC registration vary on the basis of the type of company you have, such as an LLP, proprietorship, company, or a partnership. Read on to know the documents you will need.
If you have a proprietorship, you will need:
If you have an LLP or a Company (Pvt. or Public), you will need to furnish the following:
Note- The bank certificate mentioned above is only needed in case the person cannot provide a canceled cheque with the name of the applicant and the bank account number for some reason. The bank will sign and stamp a simple bank certificate on request.
Once you have completed all the steps mentioned above and you have digital copies of all the documents you need, you should fill up the application form by visiting the DGFT portal. To get the form, you need to provide a valid PAN number.
The IEC master document would need you to fill a lot of details like PAN details, bank account, location, etc. You will also need to pay a fee of INR 250 via designated banks like HDFC, ICICI, and SBI.
Then, you will be asked to share the digital copies of all the documents needed.
Once you do that, you will need to print the IEC application form and submit the same to the DGFT office, which covers the location of your business. After printing the form, you should click on submit that will take you to a final screen that will share your company name, the Ecom Ref, No. and the details of the DGFT office where the application has been submitted for processing.
As most IEC applications are completed in two working days, you should be able to get your 10-digit code in three days or within a week.
If you have the ICE and you are gearing up to do import-export business, you should know that the documentation rules need to be followed. Yes, there are some specific documents needed for import or export that need to be completed and appropriately submitted to ensure the import-export process is smooth. Thankfully, the Indian government is focusing on the ease of doing business in the last few years. As a result, the number of documents needed for import or export has declined considerably.
Documents Needed for Exporting Goods
If you are doing an import-export business and you are exporting any goods, you should take care of the following documents.
Documents Needed for Importing Goods
In case you want to import goods into India, you will need to take care of the following documents
No matter whether you are importing or exporting stuff to and from India, make sure that you have the IEC code with you as all transactions are incomplete without it.
If you are doing an import-export business, make sure that you know that there may be some additional document requirements based on the category of goods that you are trading. For instance, if you are dealing with pharma products, the regulatory authority may ask you to furnish additional documents. Be smart and comply with every requirement of the regulatory authorities as they have the power to ban you from importing or exporting goods if they consider you to be guilty of doing anything unlawful.
How Beldara.com Can Help SME’s to Start Import Export Business?
If you are registered with Beldara.com or are planning to do so because you have an eye on export-import business, then you should know we will be happy to guide you in the right direction. We help you take your business beyond international boundaries online and offline so that you can expand your reach and boost the revenues. Call us to know more!
Source-https://beldara.com/blog/business-blog/how-to-start-an-import-export-business/
