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How to do the Import Export Business in India?

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New entrepreneurs entering into the industry of import-export has a lot of questions regarding its initiation.

The documents required and the guidelines that one should follow during the process have been listed down:

I. Setting up the business entity

Create a business setup. For starting the import-export business one needs to determine the form your business will take on the basis of proprietorship. You can establish a sole proprietorship firm, a partnership firm, an LLP, a private limited company, or a public limited company.

II. A PAN Card is a must

It is a mandatory step to obtain a PAN card from the income tax department. The process of attaining a PAN card is quite similar to that of applying for a personal pan.

III. Open a current account

After the completion of business registration and acquiring the PAN card, opening a current account is necessary. You need a current account to transact with customers and vendors. Depending on the business entity the requirements for opening a current account may vary.

IV. Issuing an IEC(Import Export Code)

IEC is essential to have if you’re looking for an import-export business in all cases except in case of restricted or prohibited goods or services. Requirements for IEC:

1.) Company PAN Card

2.) Applicant’s photograph

3.) Copy of a cancelled cheque from the business’s current account

V. Getting an RCMC (Registration Cum Membership Certificate)

Registration with the export promotion councils gives exporters access to events and assistance to diversify their business and is also necessary for availing certain benefits under India’s Foreign Trade Policy. To register with them, RCMC is necessary. There are around 26 such councils from where you can get an RCMC issued.

VI. Examining the right market for export

There are some factors that a new exporter must consider such as demand for the product, trade barriers, profitability, political environment, etc. The import-export of goods and services cannot grow without interacting with other parts of the world. Examine the market to proceed with the business effectively.

VII. Finding the customer for your product

After choosing the product and the market, it’s important to discover the customer for your product. There are many ways by which you can collect leads for your product such as creating a website, registering on buyer-seller platforms, participating in trade fairs and exhibitions, using government bodies like export promotion councils, etc.

Every step is prominent enough to be involved in the process. The proper implementation of these steps will make you ready to start the import-export business in India.

Starting an Import-Export (EXIM) business in India can be highly rewarding if you understand the regulatory framework, licensing process, product strategy, and international trade requirements.

Here’s a step-by-step guide to start and run an import-export business legally and successfully in India:

📦 Step-by-Step: How to Start Import-Export Business in India

✅ 1. Set Up a Legal Business Entity

Choose a structure:

✔ Register the business with the Ministry of Corporate Affairs (MCA) if required
✔ Get a PAN number in your business name

✅ 2. Obtain GST Registration

✅ 3. Get an Import Export Code (IEC)

IEC is mandatory for any import/export in India.

How to Apply:

✔ Valid for lifetime
❌ No need for renewal

✅ 4. Open a Current Account with Authorized Dealer Bank

✅ 5. Choose Your Product or Service

For Export:

For Import:

Use DGFT, ITC (HS) Code and EXIM policy to check if:

✅ 6. Understand International Market & Trade Terms

Research:

Tools:

✅ 7. Register with Export Promotion Council (Optional but Recommended)

For exporters, registration with EPCs (like APEDA, FIEO, EEPC) gives:

✅ 8. Customs Clearance and Logistics

For export/import, you’ll need:

Use CHA (Custom House Agent) or a logistics partner if needed.

✅ 9. Understand Payment Methods

Mode Risk Used for
Advance Payment Low for exporter High-risk for importer
Letter of Credit (LC) Medium Secures both parties
Documents Against Payment (DP) Medium Common in regular trade
Open Account High for exporter For trusted partners only

✅ 10. Claim Export Incentives

Available under:

Apply via DGFT portal.

🧾 Summary: Key Registrations for EXIM Business

Registration Purpose
IEC Code Mandatory for import/export
GSTIN Required for taxation
PAN Business identity
Bank A/c For international trade
EPC Registration Optional, for support & incentives

🚨 Tips for First-Time Exporters/Importers

✅ Start small with sample orders or third-party logistics
✅ Use valid contracts with Incoterms and arbitration clauses
✅ Be aware of anti-dumping duties, foreign trade policies, and customs rules
✅ Stay updated via DGFT notifications and RBI forex circulars

📌 Final Thought

Starting an import-export business in India is 100% legal and profitable if you:

Would you like:

Let me know—I’ll customize the help based on your business idea or product!

Export Import Procedures : Documentation and Logistics

How to do the Import Export Business in India?

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