The Export business is nothing but to explore a new horizon where you find an interesting place that accommodates different people staying together by limiting the world for you. .
The market scenario in our country has been witnessing major shifts in the recent economic scenario. There has been an exponential growth in the import and export industries.
Globalization has opened up new avenues for export and import of goods to and from India. India now deals in almost everything worldwide.
With such a flourishing export and import scenario, a number of entrepreneurs are shifting over to harness the benefits of this arena. We see a large number of start-ups that are trying their luck in the export and import business.
But, is the road that easy? Well, if you are planning to enter the area of export business from India, there are a few things you need to keep in mind. Because, if you do not weigh in the proper pros and cons in the business, you might end up in a fix!
In this blog, we will tell you all the basic information that you need to get started with your own export business in India. We will go step by step, so brace yourselves!
How to get started?
So, where do you start from?
Having an office? License? Investment plan? NO.
Let us discuss explore what you need to have step by step.
- Business Idea
Every business starts with an idea first. There are a variety of options when it comes to export business. You first need to decide what you would like to deal with. You may refer to your family, friends or other colleagues for more ideas on the same.
We will also discuss ideas for what to start within next blog.
- Business set up
Once you have decided WHAT you want to venture into, we would move on to the next step of HOW you do that. The first thing you would want is a set up for your business. And, how do you go about it?
One thing recommended is that in the initial stage, you opt for a sole proprietorship. You should go to the GSTIN registration.
Is the GST Registration mandatory to export products from India? The answer is yes and will explain about it in the next blog, keep following EximInsight.
If you would like to know more about the impacts of GST on Export Please read it.
Do not forget to get a catchy name and a logo for your business name. Try to hire a freelance professional designer to get you a logo as it would represent your thoughts and your business.
- Get a business PAN Card
Once you are through with your business name and GST registration, you need to get your business PAN card issued by the IT (Income Tax) Department.
Please note that your personal PAN card will not suffice for your business purposes.
- A current account with a commercial bank
After you get your PAN card issued, you must open a current account with any leading commercial bank in the name of your business. It would make it easier for you to keep a track of your transactions.
- The Import Export Code (IEC)
This is the most vital requirement for you if you are planning to opt for getting your import export business started in India. This code is very important to export goods and services internationally.
However, you need to keep in mind that you cannot use this code to deal in prohibited or restricted goods and services.
There are mainly three broader categories for products to be exported;
What are the free products?
Any product lies under the free category, it means the product is freely allowed to export from India.
What are the restricted products?
Products are allowed to be exported but with limited quantity.
Once the export of such products touches its limitation of supply restricted by the government, the same cannot be further exported for the year.
What are the prohibited products?
There is much product that cannot be exported from India to overseas. Prohibition of such products` export has been imposed but the government of India.
How can you know which product is in which category, we will explain in our next blog, please keep visiting EximInsight.
So, where do you get the IEC from?
You can apply for the Import Export Code from the DGFT website online. Below are the documents that you would require to get the IEC.
- Photograph of the business applicant
- Personal PAN card and also Company PAN card
- A canceled cheque from your business current account
You must also keep in mind that you can get only one IEC per PAN card. So, you must be very careful about these small details.
- Registration cum Membership Certificate
The next important step in the process of starting your own export business is obtaining the Registration cum Membership Certificate (RCMC).
This certificate is obtained from the various Export Promotion Councils and it gives you certain benefits to avail from the Customs and Central Excise authorities for the concerned goods and services exported or imported.
In India, there are about 26 such export promotion councils. You need to select the correct one according to the nature of your business requirement.
For further information please read “Registration-cum-Membership-Certificate (RCMC Certificate”
Once you are done with these steps, you can go ahead and get started with your import-export business. However, this is not the end but this the start. There are many avenues that you will have to explore so that you can get your business flourishing well.
Where do you attract more business opportunities from?
1- Online marketplaces are the most easily accessible and give you access to a wide range of products worldwide
You can have a look at below online marketplaces that will give you an insight which products you can go for.
In a new blog, we will also provide you the comprehensive insights on these marketplaces and how you can get benefited from them.
These websites give a tremendous opportunity to the exporters to list their business as vendors and connect with customers worldwide.
2- Making the most of international markets is something you must concentrate on. You can go for a trade in a good that is a deficit in a particular country. That will give you an edge over the other competitors.
3- Selecting the right product is also essential. You need to conduct a proper market study of the various goods and services that are in demand and look at their market behavior.
Some of the best export businesses include leather products, apparels, machinery, and medical appliances.
So, whatever your business goal be, a proper strategy and plan is the first thing you need to be prepared with.
Yes, it is true that opportunities are infinite in today’s market. However, execution and materialization of those opportunities are what will make you stand out from the rest in the market.
We hope the information given above will help you to feel encouraged about the booming import export business opportunities in our country. Check out our other blogs for more information on export business in India.
Please let me know if you are going to start thinking about starting your own export or import business today?