HOW TO BECOME AN EXPORTER IN INDIA ?


You do not need to export a product to become an exporter in India. Surprised !!!! Yes, you have read it correctly. If you intend to export, & have a valid IEC number (IEC Import export code) you are legally an exporter. Yes, You have read it correctly. If you intend to export, & do not actually export, but have a valid IEC number (IEC Import export code) you are an exporter.
You Don't believe, Click this link for downloading pdf of Foreign trade policy from the website of DGFT.

Chapter 9 of Foreign trade policy (FTP) says as follows :

9.32 "Manufacturer Exporter" means a person who exports goods manufactured by him or intends to export such goods.

9.33 “Merchant Exporter” means a person engaged in trading activity and exporting or in tending to export goods

Same is case for importer.


I was surprised too. I thank one of my Guru/Mentor/Trainer, I may take liberty to call , a Friend. (I don’t know if he, would like to name him so not giving his name), who told me the above information.

Most of us do search on internet – How to start export business? or How to start import export business? How to export from India? We get thousands of pages. Most of them would give information about, How to register as exporter in India? How to register Importer in India? Only Few articles on, How to Start export business, and get profit from it?

Starting import business, its easy. Apply for get document to open import company, import the products and sell in India. Selling in India, is same as you sell any other product. The difficult part is How to find supplier to Import? How to ensure import payment? Is the import payment in safe hands? Import supplier evaluation. We will discussion this in separate section.

The most difficult part is How to start export business from India. How to find foreign buyers? How to identify potential market? How to study competitor analysis? Export market analysis etc. I have discussed in detail; Step-by-step procedure of How to start export business in India. You will get valuable TIPs in every section for starting export business and Caution notes to avoid mistake while Exporting from India.

This article is for those who want to know How to register as exporter in India? The Procedure to start export business, Document required to start exports, How to register as exporter, How to get IEC code, get RCMC from Export promotion council etc..

TIP : To Start export business. You do not need to read this article. 

Caution : How to start export business. Do Not proceed if you have not read this. 

Here we will talk about How to Register as Exporter or importer, with minimum cost.

Step-by-Step procedure to register as Exporter or Importer :

1. Formation of Company or business entity :

In business, you name the child before it is even born. Yes, You need to select Name of your business entity (your company) and register it as per law of land.

A proprietorship, Partnership, LLP, Pvt. Ltd, or Ltd company, can be formed for export business.

If you already are having a company – it's Very good. You can go to point no 2. But if you want to start from scratch……





I was Scratching my brain, like many other who are new to exports. Because then, i need to form company and need a name.

Boss, how can I name company? I still don’t know, what product I am going to export? I have many thing is mind – Should i Start a Agriculture export or Should I Start export of engineering spare parts. Oh! My uncle has business of textile and garment. I can also start Garment exports from India. Lot of confusion.

You may think let me name the company, Om Shanti exports.

Wait sir… Do you remember i recommended you to read this – How to start export business in India. With my years of experience and working with various client, I have gone through all this question. This is due confusion and fear.

Good, so if you have read that or decided on which product to export from India, then you are all set to decide company name and register it with local authority.

I will have separate blog, in Export made simple – Basics of Company registration. It will give you brief Pro and con on different company format. Cost of opening company and administrative cost of keeping the company. You can also consult your accountant or CA, he can give you detail and expert advice.

I will share my experience, I named my company Vivaan International In 2013. I checked their was not a single company name Vivaan International (it is proprietorship still in 2021), but in las 2 year there are so many companies, with same name, but in different states. As I have the website and which has good rating in google (without advertising). It is due to all my client, and friends like you. But the customer who have work with other vivaan international contact me, because they see me first.

So, be careful while selecting name.

TIP : Your Name of company should have some co-relation with product you sell.

So, I suppose you will have finalized a product and company name. I think it you could have opened company in 1 day to 1 week. Yes, it depend on type of company. A Pvt Ltd, Ltd would take some longer time. Ok Lets move on.

2. NO ONE WILL GIVE YOU THIS ADVICE – BUT I DO…

While you decide the company name and start process of registering, Please also register website address. (It is called Domain name in technical term). No, I am not asking you to pay 20-30,000 and make website… Registration of website name/ website Id / website address/ Domain name would cost you Rs.99 to Rs.500 per year. Just 499 as of date.. (it again depend on name you choose. SRK exports could cost you more may be )

Many time you register a company name and when time come that you finally want to Start export business – I mean start contacting foreign buyer. But at that time you find the website with similar to your company name is not available. So you have to setting for Om-Shanti or Om.Shanti or Omshantiindia. 

Tip :  Creating website for export business is like visiting card. 

One of my client registered company name 'xyz ov erseas'. While making website he found their was another company website similar name so he bought xyzooverseas.com Then he had issue, his customer were searching his company with xysoverseas.com and the other company was geting business for free. So he change name of company to xyz ooverseas – Waste of time, money and business too.

Did you you find this point helpful, I will be happy and encouraged to share more helpful tip and tricks.

3. Opening Bank account :

Opening Bank account :

No, not a saving account. A Current account., This account is business transection only. It is necessary you open bank account, as you would need a AD code; while you go to apply for IEC code. In the next step you will know How to get IEC code.

Tip : Current account should be opened in a bank with is Authorized to deal with Foreign exchange. Thats with (AD – Authorized Dealer code is all about) Bank will issue you a letter once you tell them you want to open IEC code. Now day all things are online.

Depending on bank they will take their own sweet time. Private bank are faster, but now days they are also toooo busy.

I am planning to make separate section of selecting AD Bank for Export business. Different bank have various Bank charges for inward remittance ( Foreign exchange you receive In bank is called inward remittance), LC handling charges, Document handling charges, BRC charges, charging for transmitting SWIFT message and more importantly How to negotiate Currency rate with Banks.

4. Apply for Company PAN Card :

You can Do it your self, by visiting  NSDL website. and filling the Form 49A from the menu. You can also visit income tax website for updated rules and procedure.

5. Get Digital Signature :

Which class of digital signature is required for IEC code or Digital signature required by DGFT is mentioned in pdf published by DGFT on its website, as the regulation change from time to time. It is best to visit the DGFT website to know update.

6. You can apply for IEC code online :

How to apply IEC code? You need to have Company name, Company Pancard, Digital signature to apply for IEC code. Visit DEFT IEC profile management page for details.

Step-by-Step PDF guide to apply IEC code online is also available on the site. you can download study and then apply. It has screenshot of every step. So it is easy to understand. see a sample below :




7. GST registration :

Most of the item do not attract Export Tax. Infact, you get refund of GST if you have paid will purchase of goods or raw material of good to be exported.

Thus is it will benefit to reduce your input cost.


8. RCMC – Registration Cum Membership Certificate :

This is not mandatory for all of the exports. Again you need to know what kind of product you intend to export. This is membership certificate given to exporter by respective Export promotional council (EPC). The list of various registered EPC as per category can be found in the link.

Example : Apparel export promotion council, an Engineering export promotional councile etc.

If you have consistent exports or for some products like Agri export you need a Registration with APEDA you can get RCMC upfront

The major benefit is to avail Export benefit from government of India.

- Market development assistance – MDA

- Export incentive from government.

- Sales promotion, update on global activities etc.


Once you have followed above Steps to Register as Exporter in India, you are all set to Invoice your goods and official start sales.

Conclusion :

So to Start export Business from India you need to have:

  1. Product to export.
  2. Legal business entity
  3. Documents required to start exports.
  4. International business website. (your own or though trade portal)
  5. Export market survey.
  6. Marketing strategy for export business
  7. Sales policy for Exports – calculating pricing for exports, Warranty etc
  8. Payment terms for exports – DP, Letter of Credit, Document though bank etc.
  9. Export documentation & custom procedure
  10. Export credit guarantee, GSP form for preferential tariff for custom exemption etc.


Now, you have a Products for export from India, you must have done market survey for exports and decided Countries to export from India. You now need to know Finding Buyers for export from India, List of products to export from India. Step-by-step guide for export market survey, Market analysis for export, Competitor analysis etc.

You can also visit www.vivaanconsultancy.com if you need any professional services




Comments

  1. This is my test comment. To check, when you comment i get and every one can seeit.

    ReplyDelete
  2. Good information, thanks. Additionally if you're exporting agri products, the RCMC is valid for 5 years and the exporter needs to renew this certificate every year. The renewal is done by paying a minimal fee to the parent organization. The member organizations also offer training programs for exporters and importers, free trade fairs, etc.

    ReplyDelete
  3. This comment has been removed by the author.

    ReplyDelete

Post a Comment