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How to Start an Import export Sole Proprietorship business in India

We have much covered already on Sole Proprietorship which you can check out here http://www.startupfreak.com/tag/sole-propreitor/  And if you wish to start your business in import export sector then this section will be of help

What is Import/Export Business ?

import-export-sole-proprietorImport/Export Business also called as International trade is the exchange of capital, goods, or services across international borders or territories.  As the owner of an import export company, you can work as a distributor by focusing on exporting and importing goods and services that cannot be obtained on national soil or those that are cheaper when imported from other countries (e.g., Chinese electronics).

 

So basically you will be either importing/exporting two things

  1. ‘Services ‘ (ex: Web designing, software development etc)  “OR”
  2. ‘Goods’ (ex:Fashion,electronic Products etc)

Import/Export of Services

If you are planning to start you business in importing/exporting your services offerings then following things will be required for you to get started

  • PAN Card of the Sole Proprietor – PAN Card in the individual’s name will be enough for filing tax
  • Bank Account in the name of your Sole Proprietorship business
  • If you are collecting tax either from the customers or your employees then a TAN is Must and complete procedure to apply TAN is explained in simple terms here –http://www.startupfreak.com/how-to-get-tan-number-in-india/
  • If you are buying or selling taxable goods within a state, then VAT registration should be obtained. And if you are buying or selling taxable good across different states then you have to obtain CST registration.
  • Professional tax if hiring employees
  • For exports of services, Indian service tax is not applicable. To avail this you need to keep all the FIRC (Foreign Inward Remittance Certificates) which your bank will send you each time you receive money from abroad into your account (if your bank does not send the FIRC automatically, you need to request your bank to send you the same). The FIRCs will prove to the service tax authorities, that all your income was generated from exports of services and hence the Indian service tax is not applicable.

Import/Export of Goods

When you want to do international trade for Goods/Products then apart from all the above mentions registrations you need to obtain a unique 10 digit Importer Exporter Code also, without which you cannot carry on the import and export activities. DGFT – Director General of Foreign Trade and Ministry of Commerce in India are the two higher authorities that administered the process of issuing IE code to the respective applicants.

Steps to Start Importing/Exporting your Products

1. Selection of Products and Target Market/Countries

Decide on the Products you will be trading and get the ITC-HS codes for your Products which you can get from here http://www.dgft.org/itc_hs_code.html  ITC-HS Codes or better known as Indian Trade Clarification based on Harmonized System of Coding was adopted in India for import-export operations. Indian custom uses an eight digit ITC-HS Codes to suit the national trade requirements. To help you decide with the best target market for your Product you can refer to the Annual Statistics of Foreign Trade here http://www.dailyexportimportdata.com/Menu/Frame.asp?Frame=Ftsa

2 . Obtain Importer Exporter Code (IEC)

More details here – http://dgft.gov.in/  Apply for it online here http://dgftcom.nic.in/ieconline.htm. Importer Exporter Code Fees  250( Approx) It takes from 2 Days to 10 days to obtain you IE Code.

3.  Other Registrations

  • Once you get your Importer Exporter Code, you need to register your IEC and Authorized dealer code details with the port through which you are exporting or importing. If you are going to export by sea, you need to register with sea port customs and if export by air, with airport customs.
  • If your product falls under excisable goods [Read What is Excise Duty], you need to register with nearest central excise department to claim necessary export excise benefits under your goods exporting. The registration has to be done within the jurisdiction where your shop is located.
  • If you are manufacturer and exporter then many Government agencies support such export to boost Indian economy and will assist you with all kinds of support including financial. You can obtain Registration Cum Membership Certificate (RCMC)  from Export Promotion councils.
  • Register with Sales Tax Authorities

All the Best!

 

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3 comments

  1. Good article. Additionally, companies such as Global4PL, also helps businesses in getting all necessary import/export licenses or permits.

  2. R LAKSHMI NARAYANAN

    RESPECTED SIR/MADAM,

    GOOD DAY. .

    WE ARE NARAYANAN CONSULTANCY IN BANGALORE , WITH PROFESSIONAL LEADERS AD HAVING A PRACTICAL EXPERIENCE IN THIS FIELD FOR MORE THAN 25 YEARS.

    WE HEREBY TAKE UP THE FOLLOWING WORKS.

    1. OBTAINING IMPORT – EXPORT CODE NUMBER FROM DGFT.

    2. SEZ , EOU SETTING AND ESTABLISHMENTS OF NEW UNITS.

    3. CENTRAL EXCISE REGISTERATION/ CERTIFICATE FOR THE MANUFACTURING COMPANY /TRADER.

    4. SOURCING FOR NEW COMERS THOSE WHO ARE NEW TO THE FIELD.

    5. FOR OBTAINING SMALL SCALE INDUSTRIES CERTIFICATE FROM DIC.

    6. VAT REGISTERATION.

    WE HELP/ GUIDE THE NEW COMERS TO THIS FIELD IN EVERY ASPECTS.

    AND HELP / GUIDE IN ALL ASPECTS WORKS WOTH RESPECT TO EXPORT – IMPORT.

    KINDLY CONTACT US @ 07204292820 / 08904788518.

    OR MAIL US @ LN140559@GMAIL.COM
    / RLNARAYANAN140559@GMAIL.COM

    PLEASE NOTE :-

    TIME PASSERS CAN NOT BE ENTERTAINED .

    THIS IS FOR THOSE WHO ARE VERY SERIOUS ABOUT THEIR BUSINESS/ COMPANY IN THE FIELD OF EXPORT – IMPORT .

    REGISTERATION WITH US IS MANDATORY.

    * terms & conditions apply.

    * A UNIQUE CONSULTANCY PROVIDING SERVICES AROUND INDIA*