IEC registration is crucial in India. In this age of cut-throat competition, everyone wants to grow their business beyond the limits of the local market. However, doing business globally is not just a cup of tea for everyone. Before going global, need to follow a number of procedures and laws in place and get a separate registration and license. When we are thinking of importing or exporting from India, IEC (Import Export Code) License is essential. IEC (Import Export Code) is require by anyone who wants to start import / export business in the country. It is issue by DGFT (Director General of Foreign Trade). IEC It is a 10-digit code that has lifetime validity. Primarily importing traders cannot import goods without an export code and similarly, the exporting trader has to use IEC. Cannot avail benefits from DGFT for export scheme etc.
The Directorate General of Foreign Trade (DGFT), Ministry of Commerce and Industry issues IEC registration. Indian companies need to register with the IE if they want to expand their business through imports and exports. The Import Export Code is a ten digit code issue by the DGFT, the purpose of the Import Export License Certificate is to regulate and monitor foreign trade activities in India.
IEC Registration
IEC to conduct import-export activities in India Registration is mandatory, IEC No business can engage in import-export activity without a license. In addition, if a business wants to entertain the benefits provided by the government, then the IEC Registration is require. The Reserve Bank of India has made it mandatory for all traders to provide their Import Export Code during any payment transfer.
In the current era of increasing competition, industries, available in the local market to sustain their survival, are moving out of their local presence. With the back-to-back innovations and the generation of new ideas in the business, the emergence of e-commerce merchants, it seems important to manage the business operating locally within the globe by stepping abroad.
There are many ways to move beyond the local level, such as affiliation for foreign brands, opening a franchise abroad, starting a subsidiary or branch office abroad, or through an import-export business. Doing business globally is not as easy as it may seem.
Once given the Import Export Code (IEC) can be use by its entity in its existence and does not require any renewal. When the organization is IEC, obtain the organization at that time may be involved with any issues in the import-export requirements.
Features
Potential Global Exposure: IEC enables businesses to expand their potential reach by moving from local markets to national markets and from above and international markets.
Benefits by Government: Government of India always helps in promoting exports from the country. To this end, the DGFT, Customs and Export Promotion Council, provides companies with export scheme benefits that enable and encourage exports through IPC code registration.
No Problem of Renewal: The IE code issued by DGFT is valid for the entire lifetime of the applicant and therefore there is no need to repeat your import-export license, leaving you with only one time registration cost.
Annual compliance: IEC in protest of tax returns. Number-assisted transactions and shipments do not need to be re-produced anywhere. There is no annual mandatory compliance for transactions made through IEC registration
Anyone, Anywhere: As mention earlier, no business entity is required to register an IE code; anyone can be involve in the import-export of goods.
Documents required for IEC registration:
- Scanned copy of inclusion / establishment / registration for specified entity. This supporting document is mandatory for registered society, HUF, partnership, trust, others.
- Scanned copy of photograph (passport size)
- Proof of Company / Individual / Partnership Firm / LLP
- Person’s ID Proof – Aadhar Card, Passport, Voter ID, Mobile No. And email id
- You must have a current or savings bank account with a bank that contracts and transacts on a foreign exchange.
- You need to have scanned copy of rent / lease deed, sale deed, electricity / phone bill for verification of address
- If the applicant is a non-resident Indian (NRI) or has a non-resident interest in the company / firm, you need to submit a scanned copy of the RBI approval letter.
- You must have a ‘Banker’s Certificate’ in the prescribed format or have a scanned copy of the ‘Cancelled Check’ on the name of the entity or a print of that person’s name.
Steps involved in IEC registration:
First, need to prepare the application form in the specified format – Import Export Form no. Format 2A and file it in the respective regional office of DGFT.
Second, need to prepare documents related to identity and proof of address along with bank details and certificate regarding legal entity and ANF2A.
Once the application is completed, need to file with DGFT through DSC (Digital Signature Certificate) and pay the required fee for IEC registration.
Finally, the application is approve, will receive a soft copy from the government. The code will be receive.
IEC Benefits of registration
1. Expansion of business
IE code helps take services or product to the global market and grow business.
2. Gain many benefits
Companies can avail many of their import / export benefits from DGFT, Export Promotion Council, Customs, etc. Based on registration
3. No filing return
Ie code is not require to pay any compensation. Once allocated, there is no need to follow any kind of procedures to maintain its validity. Even for export transactions, there is no need to file a refund with DGFT.
4. Easy processing
It is very easy to get IE code from DGFT within 10 to 15 days after submitting the application. No export or import proof is require to obtain IEC code.
5. No renewal required
The IE code is effective for the lifetime of the entity and does not require renewal. Once it is receive, it can be use by the entity against all export and import transactions.