Since the very beginning of time as long as there have been people, there has been trading. Humans have been interested in buying and selling various goods from each other in exchange for monetary values or in exchange for other goods. Since each country is invested with bound benefits in resources and skills like some countries area unit wealthy in natural resources like fossil fuels, timber, fertile soils or precious metals and minerals, whereas different countries have shortages of the many of those resources. Similarly, some countries have extremely developed infrastructures, academic systems, and capital markets that let to have interaction in complicated producing and technological innovations, whereas several countries don’t. Countries lacking in a particular resource might need to import the same from another country. This is where Import-Export comes in.
Exporting and commerce help grows national economies and expands the world market. And in recent times, we have seen major growth in the export and import of goods and services in India. Seeing this change more and more entrepreneurs and startups have been venturing into this area.
If you too are looking to venture into the foreign trade sector, we have put together a list of how to do the same in just 5 simple steps:
1. SET UP YOUR BUSINESS BY TAKING GOODS AND SERVICE TAX (GST) REGISTRATION NUMBER
To venture into the Foreign Trade sector, first and foremost, you must have a proper entity. It is recommended that you open a sole proprietorship in the initial stage by taking Goods and Service Tax (GST) Registration for your business. You should try to register your business with an attractive name that is relevant to your business and also choose an appropriate logo to go with it.
2. APPLY FOR PAN ON THE BUSINESS NAME
The second thing you need after you have acquired the required registration is a PAN on the name of your business. It is mandatory to have a PAN card issued by the Income Tax Department of India.
3. OPEN A CURRENT BANK ACCOUNT
After receiving your business registration and PAN card the next thing you need is to open a current account in any commercial bank of your choice which will be used exclusively for your business.
4. GETTING THE IMPORT EXPORT CODE (IEC) ISSUED
This is one of the most important requirements in order to start your import-export business. IEC is required under all circumstances except in the case of restricted or prohibited goods or services.
Import Export Code (IEC) registration can be obtained by clicking here (add a link)
The following are the documents required for obtaining IEC
(i) Personal PAN card or the Company PAN card
(ii) Applicants photograph
(iii) Copy of a canceled cheque from the business’ current account
5. GETTING THE REGISTRATION CUM MEMBERSHIP CERTIFICATE (RCMC) ISSUED
After obtaining the IEC, you need to obtain a Registration Cum Membership Certificate which is granted by the concerned Export Promotion Councils. This step is to get authorization to import and export or for any other benefit. There are around 26 export promotion councils from where one can get their RCMC issued.
That is it. That is the final step. Once you complete all these steps and receive your IEC and RCMC, you can start to set up your import and export business from India.