In recent years, the import-export business has seen significant growth, prompting many entrepreneurs to venture into this field. However, starting a business can be challenging. This guide aims to assist new importers-exporters in establishing their import-export business and taking advantage of the numerous benefits offered by the government.
To start an import-export business in India, you must follow these steps:
Apply for a PAN Card: It is mandatory to obtain a business PAN card from the Income Tax Department.
Open a Current Account: A current account is essential for conducting business transactions with vendors and customers.
Select a Business Entity Type: Decide whether you want to establish a Sole Proprietorship firm, a Public Limited Company, an LLP, a Private Limited Company, or a Partnership Firm.
Obtain an IEC Code: To start an import-export business, you need to obtain an IEC Code from the government. You can do this by filling out the form on the Director-General of Foreign Trade (DGFT) website. Only one IEC Code is allowed per PAN card.
Select a Product: Careful research is required to choose the right product. Consider factors such as regulatory requirements, international markets, export trends, and other relevant factors.
Obtain an RCMC: Once you have an IEC Code, you can obtain an RCMC from an Export Promotion Council. This registration provides access to events and assistance to expand your business and take advantage of Foreign Trade Policy benefits.
Choose the Right Market and Find Buyers: Consider the demand for the product, trade barriers, profitability, political and social environment, climatic conditions, and other relevant factors when selecting a market. Once you have chosen the right market, find buyers by appointing a local agent, contacting the Indian embassy, conducting your research, or participating in trade fairs and exhibitions.