The import and export business has gained accolades from all over India, especially since the emergence of E-commerce, enabling such companies to reach out to vast numbers of audiences via offering a platform to carry out their business. Recently, we have witnessed a spike in growth in the import and export of goods and services.
Many small and medium level business leaders and entrepreneurs are beginning this type of business as they apply IEC online to run a company at the comforts of their home or office. Additionally, economic policies have also spurred the popularity of such businesses. Nonetheless, as a novice entrepreneur, you must be aware of the procedure and documentation process required to initiate your own import and export business.
Starting with registration and get going with import and export business.
PAN card – you would require your PAN card issued by the income tax department for registration.
Registering your firm – you will have to get your business registered first with GOI (government of India). Regardless of your business structure, such as private limited company, limited liability company, or sole proprietorship. You can recruit a lawyer to serve this purpose and help you with the company’s registration process. You would require acquiring a value-added tax (VAT) or service tax registration certificate. Here is the guide that can help you in understanding the registration process.
Create a current bank account – you will have to open a separate existing bank account in order to execute business dealings.
Getting an import-export code (IEC) – import and export code is compulsory to initiate an import-export business in India, and it is issued by the government of India (GOI). You will have to apply for it at the official website named DGFT.
Here is the list of required documents needed while applying for it.
A. Obtaining a registration cum membership certificate (RCMC) – once you obtain the IEC, you are required to acquire the registration cum membership certificate (RCMC). The export promotion councils issue it. You can acquire the said certificate from one of any 26 export promotion councils. After you obtain RCMC and IEC, you would be able to initiate your import and export business.
B. Recruiting an E-commerce shipping company – you would also have to employ a logistics company responsible for delivering your products to their destination point across the globe. For instance, Ship rocket is one such courier aggregator platform that helps businesses by offering them various shipping partners to ship their products worldwide with the cheapest shipping charges.
It ranks 1st in India when it comes to shipping and logistics aggregator trusted by more than 25k brands. It offers its services with the cheapest rates, most comprehensive range, and efficient customer service that your business requires.
Reach out to customs clearing agent – you will have to take aid from customs clearing agent who would be your guide in the process for getting your stuff cleared at ports, transportation charges, customs duty charges, and so forth that are there in the import-export business.
C. Opportunities in the import-export business for entrepreneurs.
Initiating an import-export business is very lucrative for E-commerce businesses. The import-export economy is burgeoning as the government has launched various schemes benefitting entrepreneurs, including bringing on the partnership with LLP registration. There is a plethora of avenues that a business can explore.
Some of the famous examples of import-export businesses are listed below.
Investment in online marketplaces.
The online marketplace is an integral part of import-export businesses. By doing this, you can be an exporter to join in as a vendor and engage with customers worldwide.
Traversing the international market.
Every country has its own special and unique products and resources to offer and exported vice versa. You will have to explore what you can provide via export to the required country and return for what you want via import. For instance, if you sell Kashmiri pashmina shawls, you can initiate an export business for such products and sell them to countries with cold and inclement weather.
Selling and promulgating other products.
In this type of business, it is always possible to search for business opportunities via selling products that you solely do not manufacture independently. You can associate with other manufacturers to sell their products in the international arena or market. For instance,
– Tobacco and tea – both of them are produced in India widely and have a huge demand in a global market.
– Medical and leather products – India’s leather industry is well-known and that is why you can export such products, it could be toys, belts, or handbags, etc. Likewise, India is slowly becoming a significant exporter of medical equipment as well, such as bandages, gauzes, gloves, face masks, and so forth.
If executed with diligence and prudence, import-export businesses can always be profitable that can open up new avenues for your company.