How to set up an import export firm in India Part 2

 


The information provided here is part of Online Export Import course 


How to set up an export import firm in India – Part 2.

 

 

How to obtain IEC numberThis article is a continuation of my first article about Setting up an Export Import Firm in India. If you have not gone through my first article ‘How to set up an export import firm in India – Part 1’, you can click here to read.

 

Now let us continue with the procedures and formalities to start an import export firm in India.

 

PARTNERSHIP agreement

 

If your firm is engaged in a partnership, you need to a have a partnership agreement between partners with terms and conditions as per partnership Act. The complete details of terms and conditions among partners with share of profit are mentioned clearly in the agreement.


I personally suggest you to get the partnership agreement registered with the authorities to settle dispute among partners if arises in future.

 

CURRENT ACCOUNT opening.

 

 

Open with a bank who got effective export import services who does not delay in crediting foreign exchange etc…. preferably with a bank with exclusive international business.

 

How to obtain an IEC number with DGFT with branch code

 

 

If you need to export or import from India, you need to obtain an Import export Code IEC from Director General of Foreign trade within the jurisdiction office of your firm situates. Without an IEC code, no movement of goods from/to the country to outside is allowed.

 

DGFT procedures to obtain an IEC number are too liberalized now days. As per the recent notification, the following documents are required to obtain an Import Export Code. However, you may cross check for further update with DGFT before applying for import export code.

 

1. Bank receipt / demand draft against application fee. This fee is INR 1000.00 while writing this article. You may re-clarify with DGFT before applying.

2. Application form in prescribed format issued by DGFT for issue of Import Export Code number. This application for is prescribed in Appendix 21B.2.

3. Please attest the application for IEC with you banker where in you have opened current account in the name of firm to operate export import activities.

4. Self attested copy of Permanent Account Number PAN issued by income tax authorities.

5. Two copies of passport size photographs of the applicant. You need to attest the said passport size photographs with your authorized bank.

6. If any partner or partners are non resident interest or holding in the firm or company exists with repatriation benefits, you need to attach a self certified copy of Reserve Bank of India approval on the same.

 

When can an IEC obtained after submitting documents.

Normally, if all documents are in order, Import Export Code is issued by DGFT within two working days. However, by taking in to consideration of transit time, you can expect to receive IE code through post office to your official address within 10 days after submitting documents subjected, all submitted documents for Import Export Code are in order.

 

I have written a detailed article about   procedures and formalities to obtain Import Export Code in this web blog. You may click here to read How to get IEC number to start Import Export business?


AD code - Authorized Dealer Code - registration with customs.

 

Once you obtained IEC if you intend to do export or import, you need to register your IEC and Authorized dealer code details with the port through which you are exporting or importing. If you are going to export by sea, you need to register with sea port customs and if by air, with airport customs also. You can appoint a customs house agent to get the job done on behalf of you.

 

What are the formalities for AD code and IEC registration with customs: What CHA does with your documents for registration.

 

Along with the Authorized AD code letter received from your bank though which you are going to transact your foreign trade; you need to attach a copy of IEC with a covering letter on your letter to be applied with customs officials. The customs officials normally finish these formalities within an hour.

 

 

how to set up an export company in India

In this article I have explained about the procedures and formalities to set up an export import company in India. Do you  wish to add more information to update this article about setting up an import export firm in India?  Share below your thoughts about starting an export import company in India.

 

Click here to continue reading - How to set up an import export firm - Part 3


Also read How to get export order from foreign buyers? 

 

 

 

 

 The above information is a part of Export Import Online Tutorial


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Comments


Shyam Reddy: Dear Sir , I have confusion with AD Code. Do I need to ask the Bank-Branch for there (Banks) AD CODE or Do I need to get my own AD Code From BANK . I hope you understand my query.

Bhagwan Upadhye: It is excellent website & a Guaidence for Begniers. Also it clarifies all quires. Can you specify me I want to start a export Firm as Merchant Exporter in propriertership name. Can I apply for seperate PAN in name of firm. also any Govt lience required other than IEC code & bank account. Since no Givt lience requ, my Bank is demanding any Givt proof such as Service tax no, VAT number, Salestax number etc Pl guide

sachin patil: Thanks for giving,such a helpful information.

Surendran Kollerath: Hi Sham Reddy, Authorized dealer code is the code number of your banker authorized as per banking regulations all over world

Surendran Kollerath: Hi Bhagawan Upadhye, Under a Proprietership concern, your individual PAN is treated as firm's PAN, as you are the sole owner of Firm. Although you are a sole proprietor of the company, all necessary documentations under government guidelines are to be followed.

kishan bagthariya: dear sir, right now i am doing outsourcing of bearings and auto parts in India. i do not have my manufacturing plant. i have deal with the local manufactures, they provide me the products and i sell it to my customer with my own brand name. but now i want to export bearings and auto parts. can i do that?

Ashok: Dear Surendran, I registered a company with Pvt Ltd. I would like to apply IEC code, but my registered company is totally differs from which I am going to import. Do I need separate company registration? or Can I import with the same company incorporation? Thanks, Ashok

Rajan: hello, I want to start a export import business but i don't now how to start, to whom i contact what are the document are need to start this business. peace give me some guide so i can do some thing. To start peace.

Admin: Hi Rajan, Read articles in this website, gently start export import business.

Deepak Singh: Excellent information for beginners.Its really very useful tips.thanks

sandeep: Dear sir, As I m a beginner in entrepreneur world, I want assitence of your. how to start export import. Provide some guidelines

National Airlink (India) Pvt. Ltd. : I have read in details about the Operations of Import/Export Business and found informations and Contents to be very precise to start up the Business. I am also looking for Such type of Business where scope is unlimited and great challanging one.First of all, to brief abount myself, I am in Travel and Tour Business since 1998 and have direct agencies of all Airlines catering all our Corporate Clients. Now to divert my line of business, I have choosen Import/Export Business. Now how to go about and all legal Formalities are all provided in your Site. Now how to get details of manufacturers who exports / import their products. Do we need to start with one product say Stationery Items which we want to import from outside and sell in india. Then how to get the details. Please guide.

Jayasree: Great information. Will help the budding exporters. Can you suggest me a suitable bank to open current account. Thank You

abhay aughade: I am working with Import Company in Mumbai . I am handling Import & bank department of the company. I visited your website through google.Sir its really good & details information you are providing which so many people in the field dont know. May I request you to please arrange a book form of all the information on your websit.

subhangi: sir hello i can start my online stores in other countries but i don,t know what i do which paper i need andi don,t know shipping information i have know idea how i sell my products direct storekeeper in other countries to india please sir give me the detail information sir i am waiting your answer thanks2

Rajesh Dhanda: Sir I am grocery shop keaper and studing import export I have no manufacturing trading etc of any product but I got I e code recently now but I do I want to become as exporter I have no money for this please sugest me for my best future

Ramesh: Hi, I have got AD code letter from my branch. Now could i register my IE Code with the customs myself or through CHA? What are the paper i should take with me while going for registration? Please reply ASAP. Thanks

laxman upraity: Sir i studing for export not my manufacturing im a wholeseller local businessbut i want to export in futre plz help me for that .

paras tandon: Hello sir, Thank you for these information, it will definitely help all of us in our business. i will say people who want to start new business here be together and share your future plans about this busines. i am saying this because if 2 people are here any they both want to do a same product business be together and buy thing together bec for example-if you buying alone 1000boxes that will cost you Rs1 per box if you buying together like- 2500 Box it will cost you Rs0.85 . if you are also new please mail me your contact details at paras.tandon@yahoo.com i also want to start my business here in India.

O.P.Sharma: Hello, Dear Sir, I want to know about Import Excavation Machinery Parts Business.How many taxes include in import Parts.Suppose we order of Rs.5000000 to China or Korea, how many taxes include in this basic value till reach at Indian Port.

Hardik Patel: Dear Sir we are manufacture and suppliers of all type brass product, we have IEC Certificate Issue , please send document submission help me,

rahul: Can I have two different banks AD code register at custom? Kindly explain?

Mohit Jain : I am presently living in New Delhi. I have planned to start a import business of importing fabrics from China. I know that you are ultra expert in your field. Can you please help me guiding what do's and dont's should i follow regarding this business. I have created a planning team for this work..

Ganesh B: Need the procedure for registration of import & export trading license

Kamal Kr. Das: I just got my trade license from local municipal corporation and applied for current account. Initially I start to sell garments in local marker through so called push selling but I want to upgrade my business in international label by importing from other country and sell it to India. Please advise can I use my existing trade license and current account to apply for export and import license ? Thanks !

philippe Lim: I have a little question. How a small business expand their market oversea without having presence abroad? For instance, a pool table company based in India, and want to sell it's goods in the south east Asia. the company create an website, and start it's e-commerce. And it got a first client who lives in Kuala Lumpur, Malaysia. How should the company send the pool table to his clients if the clients don't have the import license, therefore can't be the consignee for the shipment? I deeply hope that help me clarify this situation.

GNK REDDY: HI SIR,THIS IS GNK REDDY.I AM CONFUSED ABOUT IE CODE ND AD CODE.HOW TO GET IE CODE ND AD TOO.JUST EXPLAIN ME IN SIMPLE FORM . KINDLY REQESTING U SIR.

Trupti: If we'll export through air; then is it compulsory to hire CHA ?

kuldeep Patel: Sir . Actually I want to start export business but I can't understand some documents what is fob and what to do fob it's a compulsory or as pr requirement and one is (l/c) .LC is very difficult how to do work of LC and . it is open at any bank any branch ? I hope u r understand my query plz give me solution

Arun: Hi sir, I please suggest me how can i find find customers in other country, because I don't have any known person in abroad please advice. Thank you

Sameer Bhatnagar : i want to get into export & import can y tell me the procedure to enter in it.

Amarpreet Singh : I am Minni Ahuja from Delhi. I want to take dgft licence for import business. Can u guide me

Gayathri PH : we are planning to start an export business, we need your help and we want to consult you.

Bhanu Kumar : This is Bhanu Kumar from Andhra Pradesh, currently, I am in Malaysia and working for IT firm. I have got your reference from web while searching for import export information. I would like to start my own Import / Export business in India and want build relationship with Malaysia since I am here for last 4 years. I would require adequate knowledge on starting this business through your guidance. I hope I will get many inputs from you for further assistance. hence, kindly provide the steps which are required to start the business and also please let me know what are the pros and cons.

Deepak Agarwal : As per i study your article, i want your help because i want to start my own export business i have no idea about this business so please help me. I am from jaipur. Now, i am doing my own property business but i want to chance this business.

sandeep melwan : I m sandeep melwan going to import supermarket display racks from china. What will be the procedure for this? How much time and charges it will take. Kindly help me

Deepak Agarwal : As per I read your Profile in Google please suggest me how to start import/export business. I am 25 years.old.

Rupak Samal : I am Rupak Samal, Can I know the how to apply for IEC licence? And what is the process?

paul mcintyre: Please let me know the documents or certificates required to start au-metal as iam planning to export metals from Africa.

Rajnish verma: My query is ,being a trader if i want to import iron scrap, 1.do i need excise number for it? 2/second ,can i get excise number though i have no manufacturing unit ? if yes , will CVD/excise duty of 12.5 % be refunded /adjusted when i sell my product to end user who is having excise registration number 3.what tax can i get refunded/adjusted when i sell/invoice my product to end user ?Please advice

Ambiga: IE code online application process

Bharath Bk : I would like to know about how to do import and export business,so please give some valuable information.

Jaspal singh: Wonderful information

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Samiulla: I would like to know about import and export business please give me some valuable information from the basics..thank you

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