How To Open An Import Export Unit In India
Everyone wants to expand their business and grab global opportunities. It will not only help in gaining some monetary benefit but also get recognition as an international brand. This is a scenario where the terms like “export-import” are used. Sometimes we may be exporting our goods to other countries to meet their requirements like exporting cotton.
And in some cases, we need to import the goods from a different country like importing petroleum. According to some reports and import-export data
, many protocols have to be met to perform business activities in the global market. One needs to open up an import-export unit in the home country (India) according to the policies set by the governmental authorities. Let’s discuss the complete procedure in detail.
Steps of setting up an import-export unit in India
1. Establish an organization
The first step is to incorporate your company. To register a startup, one needs to get it recorded under the Ministry of Corporate Affairs (MCA). But the entire process can be performed through online mode. These are the following steps that need to be completed the procedure.
- Obtain Digital Signature Certificate as this will be used to authenticate your normal signature via online mode.
- Acquire your Director Identification Number after providing the details of the director of your company.
- Register your organization on the official portal of MCA
- Apply for the incorporation by providing the required information.
Submit the following documents:
- A formal letter clearly describing the name of the company is available without any ambiguity.
- DIN of all the proposed directors
- Form 1 (for company incorporation), Form 18 (address of the company), Form 32 (particulars related to directors, managers & secretaries)
2. Open up a current account in any bank
You need to open a current account with a bank that is authorized to support foreign transactions.
3. Get Permanent Account Number (PAN)
Every person dealing with import-export business needs to get a PAN from Income Tax Department, and you can apply for the same through the online method.
4. Obtain Import Export Code (IEC)
According to the import-export data, a businessman (who wants to export/import goods through the port) must present IEC. For IEC registration, follow the following steps:
· Prepare an application form as per (Aayaat Niryaat Form) ANF-2A format
· According to the prescribed format (ANF2A), submit the required documents. These include PAN card, Aadhar card, cancelled cheque from current account, rent agreement/electricity bill, and self-addressed envelope.
- After completing the application, pay the registration fee and file it with your regional office of DGFT via DSC.
- Once your application is approved, you will receive your AEC.
5. Get your Registration Cum Membership Certificate (RCMC)
There are many benefits and concessions offered under FTP 2015-20. Now one can obtain it through online mode with the help of a digital signature. Follow the below procedure to acquire your RCMC.
- Register as a member on the APEDA website.
- Provide basic details like email, mobile number, IEC, etc., and validate it through OTP.
- Upload all the required documents and pay the registration fee.
- · You will get the status of your application at your registered email address.
6. Select the product
The majority of products are freely exportable, but some are prohibited or required to fulfill some formalities. So choose your product.
7. Find the buyers
One can find the buyers via many techniques. You can participate in exhibitions, fairs, etc. or you can take help from export-import data to find more buyers and insights to your competitors.
8. Provide samples with costing plan & negotiate
The last step is to provide a sample of your products along with a competitive price. After getting a positive response on the ample, you need to negotiate with the buyer to seal the deal.
9. Cover the risks through ECGC
Many risks can occur while delivering the shipment to the buyer, and you need to cover them through a suitable policy from ECGC.
The Golden Advice
For taking the import-export business to a greater height, it is important to find the right buyers or sellers in the global market. Now you can find it at your fingertips with Seair EximSolutions. We provide import-export data with actionable reports that can help make the strategy for your trading business.