We have witnessed massive growth in the import-export business in India of late. Regarding this transition, there are increasing numbers of entrepreneurs or startups entering this region. However, many leaps in without weighing up the pros and cons transforms it into a horror scenario.
So how do you know when your company is ready to enter the market for import/ export? Here are a few things you need to get in order.
First, you need to have a company plan.
In the initial stage, it is recommended that you open a sole proprietorship by getting a GST registration with an appealing name and logo.
Get a business PAN card
Once you have obtained the registration required, you must have a PAN card issued by the Department of Income Tax.
Open a current account
You have to open an existing bank account with any financial institution specifically for your business after you acquire your business registration and PAN card.
Get the Import Export Code (IEC) authorized
This is one of the essential requirements for starting your import and export business. IEC is necessary for all situations, except for products or services, which are limited or forbidden. Registration with the Import Export Code (IEC) can be acquired by applying online through the DGFT website.
Receiving the Registration cum Membership Certificate (RCMC)
Upon receiving the IEC, you must obtain an RCMC, issued by the Export Promotion Councils concerned to obtain permission for import and export or any other advantage. There are about 26 councils for export promotion from where you can have an RCMC published. You can establish your import and export company from India after having the IEC and RCMC published. The IEC and RCMC released are applicable for all subsidiaries or licensed premises throughout India, and all registrations take just five to seven days to complete.
Opportunities with exporters
Importing and exporting products or services is an essential part of the economy of a country, and a country cannot expand without engaging with the other areas of the world; And, as stated already, there are several ways one can explore after entering import and export. Some of those continue to follow:
- Exploring of marketplaces online
This time, the internet serves as a bridge for exporters to sell their goods to consumer’s miles away.
2. Discovering markets around the world
Since each state has exclusive resources to export, it wants to import some resources. It would help if you considered what you can export to the country that needs it, and what you can import in return.
3. Exploring the product possibilities
It does not mean you cannot import a high demand item from abroad into India if you are selling an Indian-made product to the country. There are many markets for the company, which one can delve in.
While it costs nothing to come up with a plan, what will generate a profitable business is to implement and eventuate. Importing and exporting goods and services will indeed encourage trade, and will always allow you and your country to explore new opportunities.