How to get an IEC Registration Process in India?by Aalia Singh SEO Executive
In this highly competitive environment, everyone wants to grow their business beyond the domestic market. Before going global, there is a need to follow several processes and laws to get different registrations as well as licenses.
Online IEC Registration Process is one such license required to import or export your products from India.
What is Import Export Code?
Import Export Code (IEC) is required by any person who is looking to start their import or export business in India. Director-General of Foreign Trade (DGFT) issues the certificate. IEC is a10 digit code that has lifetime validity. Exporters, as well as importers, cannot avail of any benefit without ten-digit IEC.
IEC is required for the following situation –
- The custom authorities require IEC when an importer needs to clear his shipments.
- The bank requires IEC when the importer needs to send the money.
- The custom port when exports need to send their package.
- When exporter receives money from a foreign country directly into their bank account, the bank requires the IEC.
What are the features of IEC Registration?
The essentials of the Import-Export Code is the following:
- Expand business: Business is extended and developed by going global for selling products and services outside India using the Import-Export business that will overall create the growth of the company.
- Government's Schemes benefit: The Government of India supports the entrepreneur for exporting the products out of India and thus having IEC code, exporters can easily claim advantages from customs, DGFT export promotion schemes, export promotion council, etc.
- Subsidies: Based on the IEC Code business engaged in import and export activities, it takes advantage of fare supports provided by the Government.
- Return filing: There is no requirement for following certification of any return. No compliance is required to be developed for keeping the IEC License valid and therefore, it is just a one-time expense with no additional filling
Can Do you start the Import-Export business without obtaining a license?
Any individual or company or sole proprietor engaged in the business of import-export does not need to obtain an Import-Export Code license. It is an essential recognition provided by the Government to the exporters as well as importer of goods and services. Though, if the value of the product transacted is low, the authority can permit first export after imposing nominal charges.
What is the validity for IEC Registration Process?
The ten-digit IEC code has the validity of a lifetime. Therefore, there is no hassle of updating, renewing, or filing for IEC Registration. The validity is till the business exists, or the registration is revoked or surrendered. There is no compliance requirement like annual filing in the case of import export code registration.
What are the Eligibility criteria to obtain IEC Registration Process?
Business registration dealing with export or Import of goods should register for IEC, irrespective of the size of the business.
IEC Registration Processes not required for Import or export of personal use products because they are not connected with trade, manufacture, or agriculture. Setting up a business is not required to apply for IEC.
Who are exempted from IEC Registration Process?
The following category of people cannot take IEC registration-
- Import and export of goods for personal use
- Import and export by the central Government for defence purposes or other lists specified under Foreign Trade Order, 1993.
What are the documents mandatory for IEC Registration Process?
Following documents are needed for IEC registration in India-
Type of company
What is the IEC Registration Process procedure?
Following is the procedure for IEC Registration Process online-
What Are the Precautions that should be taken while filling For IEC Registration Process?
- No need to apply for additional IEC in India against the same PAN
- You need to be specific while providing information about the business. The applicant can be punished for delivering actionable and incomplete information.
- It is essential to update business information once in every year after receiving e-IEC. The update shall be provided on the DGFT.
What are the Advantages of IEC Registration Process?
The advantages of IEC Registration is-
International market reach
IEC helps you to take your business to the global level, and it will increase the growth as well as revenue.
No annual maintenance
There is no need for any yearly maintenance fee once you have obtained IEC.
IEC is permanent documentation having lifetime validity.
No risk of illegal transportation
IEC is centralized, which helps the officials to manage the cross border business.
The IEC registered firm can avail of the benefits, as well as subsidies, declared bu the customs.
No need to file again
There is no need for filing any annual fining or return
What are the standards for IEC Registration Process?
- IEC holder should not apply more than one IEC against the same PAN card and business.
- Every applicant should provide authentically information to avoid any penal and legal actions for furnishing the wrong or incomplete information.
- On receiving IEC code, applicants are required to furnish their details on the DGFT web portal. In the case where any changes are being made, needed to update the on the web portal.
Obtaining IEC becomes mandatory for commencing import-export business. Online IEC Registration Process makes the process more simplified and hassle-free. There is no need to file for the renewal of IEC because the code has lifetime validity. DGFT has various regional offices in the whole of India. In case of any query, contact Corpbiz.
Created on Jul 2nd 2020 01:25. Viewed 244 times.