In today's competitive world, many businesses want to expand beyond their domestic markets. Doing business globally is easier than ever thanks to technology and the internet. However, before you can start exporting or importing goods, you need to follow certain procedures and laws, and obtain various registrations and licenses. One of these requirements is the IEC (Import Export Code) license.
The IEC license is required for anyone who wants to start an import/export business in India. It is issued by the Director General of Foreign Trade (DGFT) and is a 10-digit code that is valid for life. It remains valid until the business ceases to exist or the registration is revoked or surrendered. Unlike other tax registrations, such as GST and PF registration, there are no annual filings or compliance requirements for IEC registration. Therefore, it is recommended that all exporters and importers obtain an IEC license after incorporation. It is a one-time process with no additional compliance requirements. Without an IEC license, importers cannot import goods and exporters cannot take advantage of DGFT export schemes. Since the introduction of GST, the IEC issued matches the PAN of the business. Yet, the IEC will still be granted separately by DGFT upon application. Firms seeking an IEC can have various structures: Proprietorship, Partnership, LLP, Limited Company, Trust, HUF, or Society. Engaging with export-import activities without IEC registration is not permissible in India and is henceforth deemed as a legal offence. Before bringing goods into India, the person bringing them in needs to make sure their business in India is registered for GST and has an IE code. These are necessary for getting the goods through customs. If they don't have both the IE code and GST registration, the goods could get stuck at the port and they might have to pay extra charges or the goods might even be destroyed.
In essence, anyone engaging in cross-border trade activities, whether it's importing or exporting goods or services, needs an IEC.
Essential Documents for Every Applicant:
Embarking on the rewarding journey of international trade in India necessitates the acquisition of an Import Export Code (IEC). This crucial document serves as your official authorization to engage in import and export activities, acting as a key to unlocking the vast potential of global commerce. This guide provides a comprehensive roadmap for securing your IEC efficiently and seamlessly.
Step 1: Obtain a Digital Signature Certificate (DSC)
Initiate the process by acquiring a Digital Signature Certificate (DSC) from a duly accredited certification agency. This electronically verifiable certificate serves as your digital identity, ensuring the security and authenticity of your application.
Step 2: Access the DGFT Portal
Navigate to the official website of the Directorate General of Foreign Trade (DGFT), the government body responsible for administering IEC registrations. Register for an account or, if already registered, login using your credentials.
Go to the DGFT website.
Click on the Services tab on the homepage.
Select the IEC Profile Management option from the drop-down list.
A new page will open. Click on the Apply for IEC option on the page.
Click on the Register option. Enter the required details and click on the Sent OTP button.
Enter the OTP and click on the Register button.
Upon successful validation of the OTP, you will receive a notification containing the temporary password which you can change after logging into the DGFT website.
After registering on the DGFT website, login to the website by entering the user name and password.
Step 3: Complete the Online Application Form
Click on the Apply for IEC option on the DGFT website dashboard.Click on the Start Fresh Application button. Carefully complete the form, providing accurate and detailed information regarding your business entity, legal structure, contact details, bank account particulars, and other relevant particulars. Additionally, upload the requisite documents, ensuring conformity with the prescribed format and specifications.
Step 4: Submit the Application Fee
Finalize the process by settling the application fee through the secure online payment portal. Utilize your preferred method, be it internet banking, credit card, or debit card.
Step 5: Monitor the Application Status
The DGFT will efficiently process your application. You can readily track its progress and stay informed throughout the review process by accessing the dedicated online portal.
Step 6: Receive Your IEC Certificate
Upon successful authorization, the DGFT will issue your IEC certificate and dispatch it electronically to your registered email address. Download and maintain a printed copy for future reference.
Once you've successfully obtained your IEC registration, you're all set to kickstart your export journey.
An IEC (Import Export Code) registration is a must for businesses that want to export or import goods. With an IEC, you can reach a global market and grow your business exponentially.
Benefits of Importer Exporter Code (IEC):
1. Global Market Access: IEC facilitates access to international markets for import and export activities, allowing businesses to engage in global trade.
2. Legal Recognition: It provides legal recognition and is a mandatory requirement for import/export businesses in India.
3. Availing Government Benefits: Registration with IEC allows businesses to avail benefits under various government schemes, incentives, and export promotion councils.
4. Expansion Opportunities: Having an IEC opens avenues for expanding business horizons by exploring new markets and opportunities worldwide.
5. Credibility and Trust: It enhances the credibility of the business in the eyes of international partners and banks, fostering trust in transactions.
6. No Requirement for Renewal: Once obtained, the IEC is valid for a lifetime and doesn’t require renewal, simplifying administrative processes.
7. Bank Transactions: It is required for foreign remittances and payments, making it essential for conducting international financial transactions.
8. Exemption from Certain Taxes: IEC holders can benefit from certain tax exemptions and incentives provided by the government for export-oriented businesses.
9. Easier Documentation: Streamlined documentation processes for customs clearance and other regulatory compliances, reducing procedural complexities.
10. Establishing Brand Globally: It aids in building a global brand presence by enabling seamless import/export operations.
According to the latest circular issued by the government, IEC is not mandatory for all traders registered under GST. In all such cases, the PAN of the trader shall be construed as a new IEC code for the purpose of import and export.
If you are interested in getting IEC registration through Ecfile, please visit our website or contact us for more information. We would be happy to help you get started.
Expert guidance: Our dedicated team is available to answer your questions and walk you through every step.
Transparent process: Track your application progress in real-time and stay informed.
No hidden fees: Pay a flat fee with no surprises, transparently outlined from the start.
Comprehensive document assistance: We help you gather and verify the required documents, minimizing errors and delays.
Customized solutions: We tailor our services to your specific needs, whether you're a solopreneur or a multinational corporation.
Beyond just paperwork, EcFile is your partner in success. We provide: