India has massive growth in importing and exporting goods and services, including food items. As a result, there is a high demand for Indian products in the international market. Similarly, Indians are also attracting to global products. Thus, many entrepreneurs and startups began to venture into the import and export business in India. However, the correct information that is absent may turn the business experience into a nightmare.
The Indian government is promoting the import/export business, and despite the several steps taken, First, one needs a list of licenses and registrations to start India’s import/export business. Some of the detailed checklist of how to start an export/import business as per Indian government rules:
- Register the business as a legal entity: it is suggested to register your business as a company, firm before initializing anything. Business information may be a proprietor firm, partnership firm or a company.
- Registered business as Partnership firm: it has a minimum of two partners and has unlimited liabilities.
- Registered business as Proprietorship firm: it has the least cost of formation. Applicable for any individual business owner,
- Business registered as a private limited company: this is a popular way to registering a business in India. Businesses that aim to have large import/export items may register themselves as private limited companies.
- Registered as LLP: this registration is suitable for businesses if one wants to deal with international companies. The firm is registered under the central government ministry of corporate affairs.
- After the company registration, there is a requirement to obtain the pan card that is mandatory and issued by the income tax department.
- Need a bank account: after having registration and a PAN card, one needs to have a current account in the bank in the company’s name. This is a business account, and every transaction is recorded.
- Import-export code(IE code): a ten-digit code issued by the director-general of foreign trade to Indian companies and firms; this IE Code can be easily applied online at the DGFT portal. It is essential to note that only one IE code be allocated for one PAN.
- FSSAI food license: an export license is required for food products. For every manufacturer, trader, retailers, exporter and importer of food product and any raw material one need to acquire 14-digit FSSAI license for export or FSSAI registration no.
- GST registration: Indian exporters and importers need to have a GST number. One needs to save one tax for proprietor firms, as they only pay income tax on a slab basis.
- APEDA LICENSE
- Registration Cum Membership Certificate
- Have a custom clearance agent
We have mentioned the registration and licenses to initialize the import-export business in India remain constant. At the same time, there may be some specificity in every field of business. For example, in the export and import of food products, food business registration is required. FSSAI License Delhi has some defined standard procedures for all food operators. This makes it easier to apply for an applicable food license depending on the requirement of the business.