I have compiled a comprehensive guide on how to start an import-export business. As a result of the rapid growth of the import-export business in recent years, more and more entrepreneurs have been attempting to venture into it. Starting a business is a challenging and difficult task for anyone. If you wish to export, you can take advantage of numerous government benefits. Through this blog, we intend to help budding new importers and exporters set up their import-export companies.
To Start an Import Export Business in India, You Need to Follow the Following Steps:
1. Obtain a PAN card
For a business entity, it is mandatory to apply for a business PAN card and to get it from the Department of Income Tax as soon as possible.
2. Establish a Current Account
A current account is an account that is being used by businesses in order to transact with both their vendors as well as their customers. Without a current account, it would be impossible for businesses to conduct business.
3. Choose the Type of Business Entity
The choice of whether the business should be started as a sole proprietorship firm, as a public limited company, as a limited liability partnership, as a private limited company, or as a partnership firm should be made in advance.
4. Codification Of IEC
Those who wish to start an import-export business must obtain an IEC code from the government if they wish to succeed. You need to fill out the form on the Director-General of Foreign Trade (DGFT) website. You can only have one IEC code on one PAN card. Among the documents that you will need for an import-export code (IEC) are:
- PAN (Corporate/Personal) card
- Applicant’s photo
- A copy of the business’s canceled check
5. CHoose the Product You Want
You have to keep in mind factors such as the state of regulations, international markets, export trends, and others while preparing a business plan for import export. Choosing the product is the key to a successful business plan. It can only be accomplished after a thorough research has been conducted.
6. Obtain A Registration-Cum-Membership Certificate (RCMC)
As soon as you have an IEC code, you have to obtain RCMC from the Export Promotion Council. Our country has numerous export promotion councils and they work to promote exports in the country. Having the opportunity to register with such a council will enable you to participate in events, receive assistance to expand your business, and at the same time, take advantage of the benefits that foreign trade policy provides.
A Government of India Export Promotion Council has been established to assist Indian exporters in expanding their businesses to international markets by assisting them in expanding their businesses. In general, the main role of a council is to promote the category of products that it manages and to support exporters in that category. It is the responsibility of these EPCs to offer exporters Registration cum Membership Certificates (RCMC) so that they may be eligible for the various schemes and assistance provided by these authorities.
In order to obtain an RCMC, an exporter must declare the nature of his or her business in the application form submitted to the relevant Export Promotion Council. For instance, a handicraft exporter would have to follow the process and submit the application to the Export Promotion Council for Handicrafts (EPCH).
7. Identify the Right Market and Find the Right Buyers
If you want to enter into the import export business, you should select the right market for your business after taking into consideration factors such as – the demand for the product, trade barriers, profitability, political and social environment, as well as climatic conditions.
A next step would be to find the right buyer once the product and market have been selected. This can either be accomplished by appointing a local agent in that country, contacting the Indian embassy in that country, or conducting extensive research on your own. Taking part in trade fairs and exhibitions can also be an excellent way to do business.