In July 2020, the DGFT launched a new digital platform for services related to IEC (Import Export Code). The first phase of it has covered services related to modification/amendment of IEC along with a virtual assistant. The users can monitor the status of their applications and also the pending obligations.In India, one has to register first if they wish to start an import and export business. Let us highlight the usage of one IEC for businesses in India.
Running a business of one’s own is the dream of every business-minded individual. There are various business segments where one can explore the opportunities, and one such segment is import and export. It forms a great portion of the economy of the nation, and there are many who want to start an import and export business. Whether you need one IEC code for two businesses or a separate one for each is a question that most importers and exporters want the answer to.
We will be answering this question later, but before that, any individual who wishes to start an import and export business needs to register for IEC. After registering their company, the DGFT, or the Director-General of Foreign Trade, issues an IEC Code, or Import Export Code. This is a 10-digit code that is valid for life, meaning one doesn’t need to renew the code once it is issued.
Why Do You Need an IEC Code?
The Government of India provides several benefits to the ones who have registered their business. Some of the key benefits are listed below:
- Helps in business expansion- It becomes easier to expand your business in the global market. Companies who wish to start import and export business need to have credibility. An IEC code reflects on the credibility of the business.
- Avail other benefits- Besides providing credibility to your business, an IEC also lets your business avail several other benefits offered by the DGFT, customs, and export and import council.
- No need to file returns- The next advantages that your business gets after IEC registration is that you don’t have to file returns. Once a company has registered with the DGFT, they don’t need to follow any processes for sustaining its validity. The company doesn’t need to file any returns with the DGFT.
- Faster processing- The process of registering with the DGFT is very easy. It takes 10-15 days for application approval.
- No renewal– With any form of business registration, there is always a need to renew the licence and one has to follow the complete procedure again, but when it comes to IEC registration, then there is no need for renewal. Once your company has obtained the IEC, there is no need to register for the IEC again.
Documents for IEC Registration
If you are planning to get IEC code for two businesses, then you need to provide the following documents:
- You would be required to provide your or the company’s PAN card
- Voter ID and Aadhaar card or even passport copy would work
- You must also submit cancelled cheque of your current bank account
- Rent agreement or utility bill of your company
Detailed Procedure to Register your Company(Offline):
- For an online application, you need to fill the Aayaat Niryaat Form 2A. In case of offline registration, you need to prepare an application in the same format. After filling the form, you need to submit the form to the respective Regional office DGFT.
- The next step is to submit all the documents supporting the identity of the business owner, address proof and bank details.
- After successfully completing the form, you need to file the form with DGFT signed with a digital signature certificate, and then pay the required fee for registration.
- Once your application is approved, then you will receive the IEC code in soft copy.
If you are planning to register your company with the DGFT, then you need to register for an IEC too. But many people enquire if every firm needs to apply for an IEC code for two businesses. Since IEC and PAN are linked, if an individual holds more than one proprietorship firm, then there is no need for separate IEC registration.
If a person has got more than one IEC for one PAN, then they need to apply for cancellation of the same. This was the basic information about IEC and its registration process. So, if you wish to register for IEC, then you can follow the above-mentioned steps, or seek the help of the legal specialists at Vakilsearch for assistance with your IEC registration.
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