Here is the complete guide to start import export business. in recent years, there has been major growth in the import-export business and due to this more and more entrepreneurs are trying to venture into it. Any startup would be a challenging and difficult task. The government gives numerous benefits to whoever wishes to export so try to avail as much as possible. Through this blog, we aim to guide budding new importers – exporters in the process of setting up their import-export business.
You need to follow the Guide to start import export business in India:
1. Apply for PAN Card
It is mandatory for a business entity to apply for a business PAN card and get it from the Income Tax Department.
2. Open Current Account
The current account is an account that is been used by business entities to transact with that of the vendors and customers. Business dealings would not be possible without having a current account.
3. Select the business entity type
Whether you want to start a Sole proprietorship firm, a Public limited company, an LLP, a private limited company or a Partnership firm needs to be decided beforehand.
4. IEC Code
Who so ever is looking to start an import-export business, needs to obtain IEC Code from the government. The form needs to be filled with the Director-General of Foreign Trade (DGFT) website. Only one IEC Code is allowed on one PAN Card. Documents you would require for Import- Export Code (IEC) –
- PAN card (Corporate/ Personal)
- Photo of the Applicant
- Copy of canceled cheque from the current account of the business
5. Select the product
The key to any business plan for import- export is selecting the product. This is possible only after detailed research is been done. There are factors such as the state of regulations, international markets, export trends, and others which you need to keep in mind.
6. Get a Registration-Cum-Membership Certificate (RCMC)
You need to obtain RCMC once you have an IEC Code. It can be obtained from Export Promotion Council. Our country has numerous export promotion councils and they work to promote exports. Registering with this kind of council gives access to events and assistance to expand the business and at the same time to avail benefits under Foreign Trade policy.
7. Choose the right market and find the buyers
To start the import export business, after considering factors such as – demand for the product, trade barriers, profitability, political and social environment, climatic conditions, you should select the right market.
Once the product and market is been selected, the next step would be to find the right buyer. You would need to either appoint a local agent or contact the Indian embassy of that country or do the extended research yourself. Participating in Trade Fairs and Exhibitions can also be of great help.
International trade is considered as one of the hottest industries of the current millennium and so if due care is taken while doing business, you are sure to win.