In these times of cut-throat competition, every business wants to grow and expand its market. Though making your business global is not an easy task, before going global, a company has to follow the IEC registration process for obtaining an Import Export Code license for starting an import-export business in India. A ten-digit import export code is issued by the Director-General of Foreign Trade (DGFT). Importers merchant cannot import goods without the IEC registration, and similarly, the exporter merchant cannot avail benefits from the Director-General of Foreign Trade for the export scheme.
Overview of IEC Registration
Directorate General of Foreign Trade (DGFT) issues IEC Registration Certificate. DGFT is an agency of the Ministry of Commerce and Industries; DGFT is conscientious for governing laws about foreign investment and foreign trade in India. If a company wants to expand its business by indulging in import and export activities, it must obtain IEC registration issued by DGFT.
Import Export Code is a ten-digit code issued by DGFT. The primary purpose of Import Export Code registration is to ensure that the foreign trade activities are monitored and regulated by the concerned authorities. The Reserve Bank of India (RBI) has made it obligatory to provide Import Export Code (IEC) for all the traders at the time of payment transfer. IEC code registration is also essential for traders to gain certain benefits provided by the Government of India.
When is IEC Registration required?
Import Export Coder registration is essential for a business involved in the import or export of goods and services. When an importer has to pick shipments from the customs import export code is necessary as, without it, the shipment cannot get cleared.
Bank asks importer for Import Export Code registration in the process to transfer money to other countries.
The exporter needs Import Export Code Registration at the customs port to clear shipments.
Import-export code registration is required when an exporter receives payment from abroad directly into the bank account.
Authorities of other countries verify a trader by their IEC code registration.
Advantages of IEC Registration
What are the Documents Required for IEC Registration?
Most business owners might not be aware of the advantages of running a business in the foreign market. First, let us understand that by expanding the region of a business in the international market, a business can connect to customers and clients that may require the services that are not recognized in the domestic market. Not only this, but a business will also avail certain benefits offered by government schemes.
Isn't it beneficial and interesting, but before that, a business owner needs to know that running a business in the international market is complex, but it can be made easy just by following the prescribed procedure and submitting necessary documents.
Different businesses need to submit different documents which are described below:
Documents Required for IEC Registration of Sole Proprietorship
A digital photograph of the Proprietor in the prescribed dimension of 3x3 centimeters.
The proprietor needs to submit a certified copy of his/her PAN card.
Certified copy of Proprietors' passport (first and last page), Voter ID card, Driving License, or Aadhar Card (UID).
If the proprietor owns the business premise than the sale deed or latest electricity bill, which has the name of the Proprietor.
If the business premises is on rent or lease, the proprietor needs to submit a rental or lease agreement and NOC from the landlord.
Documents of Partnership Firm for IEC Registration
The managing partner needs to submit their digital photograph in the prescribed dimension of 3x3 centimeters.
Certified copy of managing partners' passport (first and last page), Voter ID card, Driving License, or Aadhar Card (UID).
Certified Copy of Partnership Deed signed duly signed by the managing partners.
If the business premise is self-owned, the managing partners need to submit the sale deed or latest electricity bill, and if the business premises is on rent or lease than the rental or lease agreement along with the NOC from the landlord.
Bank Certificate as per ANF 2A (1) or canceled cheque, which has the name of the applicant and Bank Account number.
Documents of LLP for IEC Registration
Designated partners or directors of LLP need to submit a digital photograph in the prescribed dimension of 3x3 centimeters.
Certified copy of the PAN card of the designated partners or directors.
Certified copy of any designated directors or partners' passport (first and last page), Voter ID card, Driving License, or Aadhar Card (UID).
Certificate of Incorporation issued by the Registrar of Companies (ROC).
If the business premise is self-owned, the designated directors or partners need to submit the sale deed or latest electricity bill and if the business premises is on rent or lease than the rental or lease agreement along with the NOC from the landlord.
Bank Certificate as per ANF 2A (1) or canceled cheque, which has the name of the applicant and Bank Account number.
Documents of Trust for IEC Registration
Signatory applicants or secretary or chief executive need to submit a digital photograph in the prescribed dimension of 3x3 centimeters.
Certified copy of Signatory applicant or secretary or chief executives passport (first and last page), Voter ID card, Driving License, or Aadhar Card (UID).
If the business premise is self-owned, the secretary or chief executives need to submit the sale deed or latest electricity bill and if the business premises is on rent or lease than the rental or lease agreement along with the NOC from the landlord.
Copy of Trust Deed or Registration Certificate of the society.
Bank Certificate as per ANF 2A (1) or canceled cheque, which has the name of the Registered Society or Trust and Bank Account number.
Conclusion
Import Export Code is a ten-digit code issued by DGFT. The primary purpose of Import Export Code registration is to ensure that the foreign trade activities are monitored and regulated by the concerned authorities. Different businesses need to submit different documents for IEC Registration.