If you are planning to start an import and export business, then there is a whole set of opportunities waiting for you. The reformed policies of the government have made it easy for the companies willing to start the import and export business to register and start their business operations.
An import-export company that registers and receives an import-export code (IEC) no longer has to re-register or renew its registration periodically after registering and receiving an IEC. Due to the fact that the IEC is valid for life, this method of doing business is hassle-free and convenient.
Why Do You Need an IEC?
It is important to ask whether a company can do imports and exports without being registered with the IEC, since this is an important question. As far as the answer is concerned, every company should go through the registration process for IEC; this code is an indication that the company is credible and can be trusted with its business operations.
A bank account should also be opened at the time of registration for the IEC, which should be mentioned during the registration process. All of the funds that you will receive as a part of your business operations will be deposited into this account, so it is mandatory that you create this account.
When it comes to the number of products that one can export via a single IEC, then one can export all products that are not prohibited. One has to see the EPC to check if the product category they want to export is mentioned in it or not. There are many products that one can export under one IEC, but you need to check the EPC for the same.
Documents for IEC Registration
Now that you know about the benefits of IEC registration, we will be highlighting the steps involved in registration. If you are planning to start an import and export business, then you can do so under the following categories:
So, the first step of registration that one has to do is to form a company, and for this, you would need the following documents:
- A copy of the PAN card and the Aadhar card should be submitted
- A digital photograph of the company’s owner
- Sale deed, in case the premises purchase for business operations. In case you have rented a property, then you have to produce a rented agreement.
- In addition to all these documents, you also have to submit a bank certificate, bank account details, and a cancelled check.
The bank certificate will work as a certificate of authentication, and hence it becomes a mandatory document when you are applying for an IEC code. When you are conducting an export business, then you will receive money in your account, and you will be dealing with a foreign client. The bank certificate, along with the account details, will show that you have an up-and-running account.
As a result, you now have a better understanding of the IEC registration process and the benefits it has to offer. It does not matter whether you plan to stick to one product or more, you can do so with the same IEC, as long as the product has been listed with the EPC.
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