Introduction
Global trade enables you to market goods to customers from across the world, obtain commodities from other countries, and extend business activities to overseas markets. The import-export business may be operated as a company, partnership or sole proprietorship depending on your choice of structure.
The crucial requirement for most import and export transactions is the IEC obtained from DGFT. The IEC is linked to your business PAN and thus application is made electronically.
What is Import Export Company Registration?
The procedure of Export import registration involves taking the steps to set up a business under a legal structure that is applicable to your operations, as well as completing the registrations required for international commerce. Depending on your ownership status and goals, your type of legal structure can be company, LLP, partnership or sole proprietorship.
You need to have an IEC number as an important identification number for exports and imports. According to DGFT, IEC number is mandatory for importing and exporting operations, except in certain cases where a certain exemption exists.
Why is Import-Export Business Registration Necessary?
It is very important to get import export business registration to make the formal foundation for international trading with other companies. The important aspects of this registration are:
Business Structure: Create a structure that is accepted for your trading activities.
International Trade: Help you engage in eligible importations & exportations.
Bank: Have the necessary bank account for business to make the necessary transactions.
Commercial Credibility: Create a good impression on foreign suppliers and customers.
Business Development: Set up a base for entering into other foreign markets.
Regulation Compliance: Help you know the trade and tax requirements.
What Are the Types Of Import-Export Businesses?
You can select the trading activity according to your target markets and complete the export import online registration:
Import-Export Business Type Options are:
Export Trading: you will be sourcing Indian products to be sold to international buyers
Import Trading: you will be sourcing permitted products from overseas suppliers
Manufacturing & Export: you will be manufacturing goods in India for export
Merchant Exporting: you will be purchasing products from domestic suppliers with the intention of exporting them
Service Exports: you will be providing eligible services to overseas customers (subject to applicable rules).
What is the Suitable Business Structure?
It depends on several factors including ownership, investment and expansion plans.
A Private Limited Company should be chosen if someone wants a formal structure with scope of growth.
An LLP should be selected if there’s a need for a partnership based structure but with limited liability.
If one plans to operate the business by having multiple partners, then going for a iec registration for Partnership Firm would suit best.
OPC is suitable for those who are eligible individuals & have a requirement for a company structure.
Sole Proprietorship suits well for businesses owned individually after meeting all applicable requirements.
One can choose to Company Registration while picking up the right legal structure for their business needs.
What are the Eligibility Criteria for Import-Export Registration?
To apply import export license, one needs to have a legitimate business setup that possesses a valid PAN along with all supporting documents. According to the present IEC System of DGFT, the PAN and its documents are mandatory to apply for getting an import-export license.
There are also certain other things that you shall require for:
Email ID and mobile number
A business address
A working bank account
A valid DSC or Aadhaar verification
Documents proof of formation of business
Matching details with the PAN of the application
Documents Required
In the iec registration for company, one needs to submit certain documents as stated in current DGFT regulations.
There is a list of documents that are needed to be submitted for your Registered Office:
PAN of business
Letters for registration or incorporation
Address proof
Proof of bank account
Cancelled cheque or bank statement
Photographic proof
Digital signature or Aadhaar verification
Thus as per the current DGFT provisions, the documents required for getting IEC are proof of business establishment, proof of address, and proof of bank account of business.
How Can you Register an Import-Export Business?
Complete the entire process of import export license registration via the DGFT portal. Here are all steps to register for the license:
Step 1: Choose Your Business Structure
Step 2: Setup your Business & get Required PAN
Step 3: Registration On the DGFT Portal
Step 4: IEC Application Option Selection
Step 5: Entering Business and Applicant Details
Step 6: Uploading Required Documents
Step 7: Completing Authentication And Applicable Payment
Step 8: Submitting the application & Monitoring Status
The DGFT offers an online IEC application system that generates the e-IEC post-processing if the application satisfies all the applicable conditions.
What are the Fees for Import-Export Registration?
The registration of import export license fees depends on the professional and government charges. Government charges can change, so you should verify the applicable amount when applying.
Particulars | Fees |
Professional Fees | INR 2499 + GST |
DSC/DIN | INR 2500 |
What is the Timeline for Import-Export Registration?
Your timeline for online apply for import export license is affected by the completion of documents, verification, the process of application and if DGFT raises any issues. But when you have your business details, PAN, bank account related information and supporting documents correctly filled and ready, the process is completed faster.
Why Choose Companyregister.co.in?
Companyregister.co.in will help you establish your import-export business by completing the registration requirements.
Guidance on Structure: Advising the user on the right company structure.
Assistance with Documentation: Helping with the documentation process.
Assistance with IEC: Helping with the IEC application process.
Support with Application: It helps with filing and follow-up procedures.
Compliance Guidance: Helping with the continuing requirements.
End-to-end Coordination: Guidance throughout the process.
A good option for an international business is also a Private Limited Company structure if you’re looking for a legally valid form of business.