How to Start Export Business in India 2024 | Detailed Guide

How to Start Export Business in India

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How to Start Export Business in India (1)

Want to start an export business in India but don’t know where to start? Well, don’t worry; this comprehensive guide on how to start export business in India will address all your doubts and make you well-equipped to nail international trade.

India is performing exceptionally well in the arena of economic growth and is all set to become the fifth-largest exporter worldwide by 2030. With the Make in India project launched by the Government of India, the value of exports had led to $303,376. There couldn’t be a much better time to enter International trade as an exporter.

But is it as easy as it sounds? Starting an export business can be a daunting task. If you are new to the world of exports, then you might have a gazillion of questions. Where to apply, what are the documents required, or what legalities that should you adhere to? The information about this topic is not readily available on the internet. 

With this article, we aim to guide you through the whole process. This detailed guide on how to start export business in India will provide you with all the information you need to get started and sail your way through the sea of global exports.

Here are all the specifics, including how to start export business in India, the arrangements, and the paperwork needed. Follow the steps, and you should be ready to start your journey.

Prerequisites for How To Start Export Business in India: 

  1. Registering your business
  2. Getting an IEC Code
  3. Obtaining an RCMC
  4. Tax Registration of the firm
  5. A plan of action
  6. Sampling and Pricing to be done

Registering your business: 

Choosing and registering the company entity should be the first step in any action plan for beginning an export firm. It is advised for entrepreneurs starting an export firm to do so as a Private Limited Company. 

The promoters of the business can benefit from limited liability protection, transferability, simple access to bank loans, and more, thanks to a private limited company. Furthermore, working with a registered corporate organization in India is preferred or required by overseas consumers or clients. On the other hand, ownership and partnership businesses are typically categorized as unregistered. As a result, to launch an export business, a Private Limited Company must be registered.

Getting an IEC Code: 

Any company that exports goods from India must have an Import Export Code, often known as an IE Code. Businesses receive a specific IE Code from the Directorate General of Foreign Trade (DGFT) to track imports and exports from India. 

When applying for an IE Code in the name of a business, the following paperwork is required:

If the applicant is a company, limited liability company, or partnership firm:

  • Company, LLP, or partnership firm name
  • Certificate of Partnership or Incorporation Deeds 
  • MOA and AOA for the Company, the LLP/Partnership Firm, and the Partnership, respectively, Deed
  • Directors/Partners Address Verification 
  • Bank Reference Letter

If the applicant is an individual or a proprietorship

  • Identity proof
  • address proof
  • A letter of recommendation from a bank is required.

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Obtaining an RCMC: 

For the Foreign Trade Policy 2015-2020, a Registration cum Membership Certificate (RCMC) is required to receive benefits or concessions. 

An RCMC also provides access to services and advice from the relevant Export Promotion Councils, Community Boards, and other relevant authorities for exporters.

Getting a Permanent Account Number (PAN): 

All companies engaged in foreign trade must get a Permanent Account Number (PAN) from the Income Tax Department.

Tax Registration of the firm: 

After completing the business registration process, obtain the tax registration in the business entity’s name. A Permanent Account Number is required for any new business as the first tax registration. 

Once they have their PAN, firms can create bank accounts and begin the loan syndication, equipment, and raw material buying processes to get their operations going. 

GST is not applied to goods or services exported from India. However, since the company would be buying raw materials from outside the state and billing domestic customers, GST registration may be necessary for the business. 

Therefore, it is advised that the essential procedures be done to obtain the pertinent tax registration after opening the bank account.

A plan of action: 

Creating a company plan and strategy before beginning any venture is crucial. It’s crucial for anyone launching an export firm to go through each of the following topics in great detail:

  • A good or service that will be exported
  • Deterioration of raw materials used in the production or delivery of the good or service
  • Calculating input cost
  • Working capital is necessary
  • need money over the long run (loan or equity)
  • Exporting requires a permit or registration.
  • Market research
  • Customer research
  • Logistics and transport

Sampling and Pricing to be done: 

Customized samples that satisfy overseas customers’ requirements help increase export orders. In addition, under the FTP 2015-2020, unrestricted exports of legitimate trade representatives and technical representatives of freely exportable goods are permitted.

The price should be determined using the terms of the sale, such as Free on Board (FOB), Cost, Insurance, and Freight (CIF), Cost and Freight (C&F), and others; firms must account for all costs from sampling through the realization of.

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How to start export business in India; After the commencement of the organization: 

  • Order confirmation: Make sure to carefully note the Order criteria upon receipt of an export order once you have gotten the confirmation.
  • Check and secure the package: Next, verify and save any additional data about the ordered item’s details, payment requirements, and delivery window.

The exporter might formally contract with the foreign customer to reduce the likelihood of consignment rejection in the future.

  • Set a dispatch date for the shipment: Your efforts can only be worthwhile if the delivery is completed on time. Therefore, the export orders must be delivered promptly to the buyer’s port. 

It will help if you get in touch with CHA as soon as you receive the order to find out how many days it would take for the shipment to reach the intended port. You must therefore prepare the package for delivery and make a plan.

  • Reserve the space: The exporter must get in touch with the shipping business well in advance to book the necessary space aboard the vessel for shipment.

Internal transportation must be planned from the factory/warehouse to the shipping portals to prevent loss or damage while in transit. In contrast to C&F and FOB agreements, which importers often insure, exporters typically insure CIF agreements.

  • Present the documents to the bank: The paperwork must be delivered within 21 days of shipment to be forwarded to the foreign bank for payment arrangements.

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Get, Set, Sail!!

To get information about how to start export business in India in most states, the registrations mentioned above and permits may be sufficient to launch an export firm. However, the state may additionally demand additional registration, such as a factory license, shop & establishment act licensing, ESI / PF registration, etc. In addition, an FSSAI license may be needed if the company plans to manufacture and export goods like food products.

With the actions mentioned above, you will be equipped with all the necessary knowledge to export from India.

You could also choose an agency to have your back if you are a newcomer to the export industry. The complicated export procedures have been made more straightforward since the development of accessible platforms, and today the enterprises have expanded.

We hope now the question “How To Start Export Business in India?” isn’t as daunting as it was before you read this article. Now get all the necessary documents and kick off your export business.

Good luck!

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How To Start Export Business in India FAQs:

How to start agriculture export business in India? 

To do this, you must go to the NEPC office in your state and pay 1,000 to obtain the Exporters Registration Form. Next, you must pay 10,000 for the registration/processing fee.

How to start spices export business in India?

Sellers must get an Import Export Code before conducting any export transaction from India (IEC). The DGFT (Directorate General of Foreign Trade India) issues this 10-digit code as authorization for importers and exporters to legally transact business across international borders.

How to start vegetable export business in india?

First you need to register yourself with MoC (Ministry of Commerce) through DGFT. You’ll get a unique 10 digit IEC code. Next, fill a ANF2A form and submit to DGFT. You also need a PAN card number and Bank account with Rs. 1,000 banker’s certificate. Finally register with Export Promotion Council and commodity board which will allow you to export.

How to start leather export business in india?

The process to start a leather export business is the same as starting any other export business, follow these steps:
Set up an export company
Get an IEC number
Get License and Quota
Sign Payment and Delivery terms of the agreement
Get Export customs clearance
Ship them all

How to start leather export business in india?

The process to start a leather export business is the same as starting any other export business, follow these steps:

  • Set up an export company
  • Get an IEC number
  • Get License and Quota
  • Sign Payment and Delivery terms of the agreement
  • Get Export customs clearance
  • Ship them all

What is an IEC? 

For import and export from India, a unique 10-digit code called IEC is required. The Director General of Foreign Trade (DGFT) is the one who issues it, and it is good for the duration of the entity. 

What are the various prerequisites to commence an export business? 

Business registration, IEC code, tax registration, and so on. 

How to start export business in India which is successful?

Knowing how to start export business in India could be discouraging as the information regarding the same is scarce. But you just need to follow the following steps to kickstart your export business:

Pre-requisite:

  • Register your business
  • Get an IEC code
  • Obtain an RCMC
  • Get a permanent account number
  • Obtain Tax registration in Entity’s name

After Commencement of organisation

  • Confirm the order
  • Check and secure the package
  • Set a date for shipment
  • Reserve the space

*The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. You are recommended to obtain specific professional advice from before you take any/refrain from any action.*

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