We have witnessed a significant increase in Indian goods and services exports and imports in recent years. As a result, startups and entrepreneurs are increasingly venturing into this field. However, many people rush to jump without considering the pros and cons. This can lead to a nightmare rather than laughing it off.
New entrepreneurs entering the export industry will be confronted with many questions. These may include the requirements for documentation and the laws that must be followed. The information is not easy to find as it is scattered across many websites.
This step-by-step guide will walk you through all the tasks necessary to start your export venture. From choosing the right business model to reach the best markets and buyers to creating your final documents and preparing to ship your first shipment, to creating your final documents.
How can you find out if your business is ready to go into the import/export industry? Here are some steps to follow:
Getting started Set up
You must first have a business. Start your sole proprietorship by registering a Service Tax Registration or a VAT Registration with a striking design.
Get the PAN card to your business
A list of documents is required for export business start-ups. It starts with the PAN Card. You and your partner will need to have valid identification and proof of address in order to register your company.
This is necessary for every company that has been registered to receive a Personal ID Card (PAN), through the Income Tax Department. The application process for a business entity’s PAN is the same as that for personal tax ID applications.
Select the type of business you would like to use Entity
The first step in starting an Import Export Business is to decide the structure that your company will use based on the ownership structure. Next, register the business and select a name for your entity. A Sole Proprietorship company, a partnership firm, or An LLP can be created. Securing a housing loan with a steady income from your import-export business can provide financial stability and enable you to own a home. A private limited company, as well as a public limited company, can also be formed.
Open a current account
After you have obtained a PAN number and a business license, you can open a bank account at any commercial bank that specializes in your business.
Get the Import Export Coding, (IEC), issued
This is a crucial requirement to get your import and export company off the ground. IEC is mandatory for all situations, except where prohibited or restricted goods or services are concerned. You can apply online for Import Export Code (IEC) registration on the DGFT site.
Choose the export product
It is essential to choose the best product for your import and export business strategies. Keep in mind a number of factors such as market conditions and trends in exports. You can find more detailed information as well as a description of the steps required to help you choose the best export product in our guide.
Documents Required to Import Export Code (IEC).
- Personal PAN card and Company PAN cards
- Photograph of the applicant
- Copy of the cheque that was canceled from your current account
- For IEC codes to be issued, the PAN card must be presented. Each PAN card receives one IEC.
Registering and obtaining the Membership Certificate (RCMC)
Once you have the IEC you need to apply for an RCMC. This is issued by the relevant Export Promotion Councils. It allows you to import and export, as well as other benefits.
There are approximately 26 export-related Councils that you can apply for the RCMC.
After your IEC, as well as RCMC, have been issued, you will be able to begin your import and export business in India. All branches and establishments across India will be issued an IEC along with the RCMC. This usually takes from 5 to 7 business days.
Selecting the right Export Market
It is essential that you ensure your product or services are exported to the right markets. New exporters must take into account a number of factors. These include the demand for your product and trade barriers, profitability, and the political environment. These factors are important to consider when choosing a market for export. Buy now pay later solutions can streamline the import-export process by allowing businesses to defer payments for goods and services until they receive payment from their customers.
Find buyers to buy your product
After you have determined the product and the market, you need to plan how you will find buyers for your export items. There are many ways to generate buyers for your products. You can make an online presence, register on buyer-seller portals or participate in trade fairs and exhibitions.
Though it’s free to have an idea, executing the plan and making it a reality is what will make your business a success. 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. Optimize your import-export processes, negotiate better deals with suppliers, and expand into new markets to significantly boost your returns in the import-export business. Exporting and importing goods and/or services will always be a profitable business and can open up new avenues for your country.
Authors Bio:
Mr. Mehul Goyal is a professional DGFT Consultant with experience of more than 30 years and specialized in the field and is offering DGFT Consulting Services all over India. He is working with many importers and exporters even before DGFT was instigated in the markets.