How to start an Import Export business in India

Last Updated at: March 03, 2020
1892
If you are searching on how to start an import-export business in India, then you have come to the right place.

If you are searching on how to start an import-export business in India, then you have come to the right place. Queries on starting import-export businesses have risen in popularity thanks in no small part to the internet, and its role in shaping our purchasing and selling habits. From home-based businesses to small & medium scale enterprises, e-commerce has made it possible to buy/sell from/to any part of the world. However, with every process, there are a few essential factors like documentation, procedures, and market knowledge, that every aspiring business owner should know, before starting his/her venture.

What is an Import-Export business?

Any company that exchanges goods and services internationally and delivers domestically and vice versa is an Import-Export Business.

Documents required for an Import-Export business

  • Company registration certificate – A legal document that ascertains that a business or an organization has been registered as a business, explaining the terms of business and incorporation.
  • PAN card – A PAN card is a digital system that monitors a person’s or a company’s tax-related transactions, through a single Permanent Account Number.
  • Current AccountA bank account maintained and only used for business.
  • Import Export Code (IEC) – This IEC refers to the import-export license issued by the Government of India. A 10-digit code issued by the Director-General Of Foreign Trade (DGFT), Department of Commerce.
  • Registration Cum Membership Certificate – It is issued by the Exports Promotional Council (EPC) to the exporter. It certifies that the exports are government-approved products.

Setting up your Import-Export business

    • The RCMC for the export business –This certificate is issued by the Export Promotional Council (EPC) to the exporter certifying the credibility of the goods he/she exports. There are a total of 26 EPCs in and around the country. An RCMC can be acquired from any of these.
    • A bank account for your business – As stated by the RBI, you need to open a current account for all financial transactions related to your business.

Get Your Import Export Code

Types of Import-Export business

  • Export Trading Company (ETC): They operate by finding domestic entities that can provide international buyers what they are looking for, and exporting it to these foreign entities. 
  • Export Management Company (EMC): They act as facilitators for hire, for export companies. They put the entire operation together on behalf of the export company (including finding buyers, distributors, arranging logistics, etc), and is compensated for their services.
  • Import/Export Agents: They are essentially free agents who buy from domestic/foreign manufacturers, and then resell the goods to businesses around the world.

Export Promotion Schemes launched by the government

The Trade Infrastructure Export Scheme (TIEC) launched in the financial year 2017 provides financial assistance to businesses owned by the Central and State Governments. Under this scheme, these businesses can secure financial support for infrastructure projects. Between 2017 and 2019, a total of 28 projects have been aided through this scheme. Aside from this, the Government of India focuses on providing an international environment for trading withing each state, and create an overall environment that encourages further exports from the country.

Aside from this, the Director-General Of Foreign Trade (DGFT) operates various export schemes;

  1. Export promotion schemes such as Advance Authorization
  2. Export Promotion of Capital Goods
  3. Duty-Free Import Authorization
  4. Merchandise Exports from India Scheme (MEIS) and 
  5. Services Exports from India Scheme (SEIS)

Top-performing Import industries in India

  1. Mineral fuels including oils
  2. Gems & precious metals
  3. Electrical machinery & equipment 
  4. Machinery & computers
  5. Organic chemicals
  6. Plastics
  7. Iron & Steel
  8. Oils 
  9. Medical equipment
  10. Inorganic Chemicals

Top-performing Export industries in India

  1. Mineral fuels, including oil
  2. Gems & precious metals
  3. Machinery & computers
  4. Vehicles
  5. Organic chemicals
  6. Pharmaceuticals 
  7. Electrical machinery & equipment
  8. Iron & Steel
  9. Cotton
  10. Clothing & accessories

0

How to start an Import Export business in India

1892

If you are searching on how to start an import-export business in India, then you have come to the right place. Queries on starting import-export businesses have risen in popularity thanks in no small part to the internet, and its role in shaping our purchasing and selling habits. From home-based businesses to small & medium scale enterprises, e-commerce has made it possible to buy/sell from/to any part of the world. However, with every process, there are a few essential factors like documentation, procedures, and market knowledge, that every aspiring business owner should know, before starting his/her venture.

What is an Import-Export business?

Any company that exchanges goods and services internationally and delivers domestically and vice versa is an Import-Export Business.

Documents required for an Import-Export business

  • Company registration certificate – A legal document that ascertains that a business or an organization has been registered as a business, explaining the terms of business and incorporation.
  • PAN card – A PAN card is a digital system that monitors a person’s or a company’s tax-related transactions, through a single Permanent Account Number.
  • Current AccountA bank account maintained and only used for business.
  • Import Export Code (IEC) – This IEC refers to the import-export license issued by the Government of India. A 10-digit code issued by the Director-General Of Foreign Trade (DGFT), Department of Commerce.
  • Registration Cum Membership Certificate – It is issued by the Exports Promotional Council (EPC) to the exporter. It certifies that the exports are government-approved products.

Setting up your Import-Export business

    • The RCMC for the export business –This certificate is issued by the Export Promotional Council (EPC) to the exporter certifying the credibility of the goods he/she exports. There are a total of 26 EPCs in and around the country. An RCMC can be acquired from any of these.
    • A bank account for your business – As stated by the RBI, you need to open a current account for all financial transactions related to your business.

Get Your Import Export Code

Types of Import-Export business

  • Export Trading Company (ETC): They operate by finding domestic entities that can provide international buyers what they are looking for, and exporting it to these foreign entities. 
  • Export Management Company (EMC): They act as facilitators for hire, for export companies. They put the entire operation together on behalf of the export company (including finding buyers, distributors, arranging logistics, etc), and is compensated for their services.
  • Import/Export Agents: They are essentially free agents who buy from domestic/foreign manufacturers, and then resell the goods to businesses around the world.

Export Promotion Schemes launched by the government

The Trade Infrastructure Export Scheme (TIEC) launched in the financial year 2017 provides financial assistance to businesses owned by the Central and State Governments. Under this scheme, these businesses can secure financial support for infrastructure projects. Between 2017 and 2019, a total of 28 projects have been aided through this scheme. Aside from this, the Government of India focuses on providing an international environment for trading withing each state, and create an overall environment that encourages further exports from the country.

Aside from this, the Director-General Of Foreign Trade (DGFT) operates various export schemes;

  1. Export promotion schemes such as Advance Authorization
  2. Export Promotion of Capital Goods
  3. Duty-Free Import Authorization
  4. Merchandise Exports from India Scheme (MEIS) and 
  5. Services Exports from India Scheme (SEIS)

Top-performing Import industries in India

  1. Mineral fuels including oils
  2. Gems & precious metals
  3. Electrical machinery & equipment 
  4. Machinery & computers
  5. Organic chemicals
  6. Plastics
  7. Iron & Steel
  8. Oils 
  9. Medical equipment
  10. Inorganic Chemicals

Top-performing Export industries in India

  1. Mineral fuels, including oil
  2. Gems & precious metals
  3. Machinery & computers
  4. Vehicles
  5. Organic chemicals
  6. Pharmaceuticals 
  7. Electrical machinery & equipment
  8. Iron & Steel
  9. Cotton
  10. Clothing & accessories

0

FAQs

No FAQs found

Add a Question


No Record Found
SHARE
Senior Executive - Content in Vakilsearch