How to Start the Rice Export Business in India?

Last Updated at: Mar 12, 2021
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Rice export import
India has exported around 7 million tonnes of non-basmati rice till November 2020. It is also likely to export around 10 million tonnes in the 2020-21 season. It is revealed by sources at the All India Rice Exporters Association (AIREA).

 

Rice is one of India’s most grown crops; in fact, Basmati rice is one of the most exported products from India. Some of the prominent Indian Basmati rice buyers are Iran, Saudi Arabia, Iraq, Kuwait, UK, and others. Thus exporting rice from India is a profitable business, and for any individual who wishes to start an import and export business must not overlook this aspect. Anyone who wants to export rice from India to abroad must register the company. They must have the IEC code for doing seamless import and export business. In this article, we are going to discuss the steps of the rice export and import business of rice from India.

Process of Exporting Rice from India

The following are the basic steps of starting an export and import business in India, but here we have focussed on rice export:

1. Begin with the registration of a firm

The first step is to register your firm. One can start an import and export business as a sole proprietary company, partnership firm, trust or LLP company. After you have decided, then you must register your company. It takes approximately 20 days for the completion of the registration process. Once you have registered the company, you will get a PAN number. You will receive this in less than 40 days.

2. Get the IEC code

Once you have successfully registered the company, it is important that you must get the IEC code. This is mandatory for any company that wants to do import and export business. The process of IEC application is very simple; you can apply for the IEC code online by going on the DGFT portal. You would need the following documents for this:

3. Get the fees ready

You have to get ready with the application fee demand draft. This fee has to be sent to the Directorate General of Foreign Trade office if you are doing offline registration, and if you are applying online, you can opt for the internet payment methods. 

get export license 

4. Bank certificate

The next important document that you would need would be a banker’s certificate. This must have the details of the company, account number, directors, and the owner’s photo. This is a bank account verifying the business’s credibility and all the remittance and payment will be made in this account only.

5. PAN card

One also needs to submit the income tax department’s PAN card. Make sure that you add both sides of the PAN card.

6. Photograph

The application process also requires the full-size photograph of the director, and it must be attested. In the case of the online application, one has to add the photograph’s scanned copy on the form. 

7. MOA

This certificate is issued by the registrar and must be added when filling the application form. 

8. Company registration certificate

To run a business in India, one has to register a company, and this certificate has to be attached to the application. This certificate is issued under Section 59 of the Indian Partnership Act of 1932

9. Choose Target Country

While you are applying for the registration of IEC, you must simultaneously study the market. Shortlisting the name of the nation which imports rice from India must be handy, a few of the names we have listed above.

This was the basic information about starting the export of rice from India. Irrespective of the commodity of export, one has to have the IEC code for seamless business functioning and receive other benefits from India’s government.

You can do the registration yourself, or in case you are unsure about the same, then legal services like Vakilsearch will be the best aid for you.