How to Start Import Export Business in India?
The process of starting a new Import Export Business in India isn’t an easy job. The new entrepreneurs who enter the world of exports are likely to be faced with a myriad of questions, from the documentation required to the laws they have to follow. Unfortunately, the information is a bit limited and scattered across various websites which makes it difficult to locate.
This step-by-step guide will guide you through the different tasks you’ll need to complete in order to get your export venture up and running – starting with choosing the most efficient kind of business model to choose the most appropriate markets and buyers, all the way to creating your final documents and preparing to ship your first shipment. Follow these steps and you’ll be prepared to launch the Import Export Business in India journey into the world of international commerce.
Getting started Set up
In the first place, you need to have a business established. It is suggested that you start your sole proprietorship at the beginning by registering a Service Tax registration or a VAT registration that has a striking design and name.
Get the PAN card for your business
There’s a list of documents needed for the start of a new business in export that starts with the PAN Card. Both you, as well as your partner, must possess an authentic identification and proof of address for registration of your company.
It is required for each company that is registered in order to get a Personal Identification Card (PAN) through the Income Tax Department. The process to obtain a PAN for the business entity is like the process for the application for a personal tax ID. It is further discussed in this article.
Select the Business type you want to use. Entity
To start the process of starting an Import Export Business in India, One first has to choose the structure your company will adapt based on the ownership structure. After that, you must start your business by registering it and selecting a name for your company’s entity. You can create a Sole Proprietorship firm, a Partnership firm or An LLP, A Private Limited Company as well as A Public Limited Company.
Open a current account
Once you have received an official business license and PAN number, you must establish a bank account at any commercial bank that is specifically geared towards your business.
Get the Import Export Coding (IEC) issued
This is among the most crucial requirements to start your export and import company off the ground. IEC is mandatory in all circumstances, except for prohibited or restricted goods or services.
Import Export Code (IEC) registration can be applied for online on the DGFT website.
Select your export product
The selection of the best product is crucial to your export and import business strategy. There are a variety of factors to be able to keep in your mind, such as the condition of market conditions in international trade, the regulations as well as trends in exports, and many more. For more in-depth information and an outline of the steps to guide you in the right direction in our guide to choosing the best export product.
Documents Required for Import Export Code (IEC):
Personal PAN card, or Company PAN card
Photograph of the applicant
Copy of a cheque that has been canceled from the current account
The PAN card is required to obtain an IEC code. One IEC is assigned to each PAN card.
Obtaining the Registration cum Membership Certificate (RCMC)
After you have obtained the IEC then you have to get an RCMC which is granted by the relevant Export Promotion Councils to get the authorization to export and import, or to obtain any other benefits.
There are about 26, export-related councils which you can obtain the RCMC issued.
After you’ve got your IEC, as well as RCMC, was given, you are able to start your export and import business in India. These IEC as well as the RCMC issued are valid for all branches and establishments throughout India It can take between 5 and 7 days to have all the registrations in place.
Selecting the Right Export Market
You must ensure that your product or service exported has the correct market around the globe. There are a few factors an exporter who is new must take into consideration, including demand for the product and its trade barriers, profitability, and the Political Environment. In light of these aspects, the exporter must analyze the viability of the market and choose his market of export.
Find buyers for your product
Once you have decided on the product and market then the next step in your business plan is to determine how you can locate buyers for your export item. There are a variety of ways in which you can generate potential buyers for your products, such as making an online presence, registering on buyer-seller sites, or participating at Trade Fairs and Exhibitions, by utilizing government agencies such as Export Promotion Councils, etc.
The current economic environment favors Import Export Business in India. Get the most benefit by taking part in International Trade with any DGFT Consultants. This can provide new opportunities for businesses, but also for the nation.