Import Export License Registration- An Overview
Import Export License Registration is crucial to avail of a 10-digit Import Export Code that is imperative for all import-export business owners in India. The code is published by the Ministry of Commerce and the Director-General of Foreign Trade (DGFT). Once you avail the code, you will never need to renew it. Importers require this code because it is necessary to transfer money to foreign financial institutions and clear their shipments and customs. Exporters need it to receive foreign income and send shipments. Evidently, since the primary operations require the code, it is only possible to operate as an importer/exporter in India with this code.
Advantages of Important Export License for Business
Besides primary operations, below are some of the additional benefits of the export-import license online application procedure:
Niryat Bandhu Scheme
The Director-General of Foreign Trade introduced this scheme to facilitate learning and availing an export and import management certificate. You can apply for this certification using your import-export license for business.
Availing Government Schemes
The license for export business is very beneficial to avail various government schemes. These include subsidies and benefits introduced by Export Promotion Council, Customs, or other authorities. For example, an exporter is not required to pay the tax if he signs a letter of undertaking under GST. If he still had to pay the tax underlying any law, he is free to avail of a refund on the same.
Increased International Market Potential
You need to complete an export-import license online application procedure to operate an import-export business in India, which limits you to the domestic market. However, with a functional import export license for business, you can take your business to the global market opening doors to new growth opportunities.
Risk of Illegal Transportation
With the promotion of import-export license registration, the government is trying to regulate the industry better to eliminate fraudulent or illegal activities. In addition, more registrations mean better management and supervision of cross-border activities. This will also facilitate operations for businesses as they will not deal with fraud.
Least Compliance
Unlike all other laws in the country, import export license for business requires no compliance after a successful registration. It is hence easier to maintain the company after the necessary formalities.
Validity of Import Export License Registration
As mentioned earlier as well, there is no need to renew the import-export license for business after a successful application, as it is valid for life.
Who Requires an Import Export License?
An individual, partnership firm, company, or limited liability partnership firm can complete an export import license online apply procedure if they are involved in any import-export activities. It is necessary to obtain an import-export code even if you are not engaged in export-import activities at present but plan to do it in the future.
What Do You Require to Apply for an Export-Import License?
You must have the following prerequisites to apply for an import-export code (IEC):
- Since the IEC is issued in the name of the applicant, ensure that you already have a bank account under your name or your firm's name.
- You will also require documents like address proof, business entity details, and identity proof to submit to the DGFT office.
- For this procedure, the PAN number provided by the Income Tax Department is essential.
- Your business must be registered officially under the Registrar of Companies.
Steps to Online Import Export License Registration
There are only a few steps in the export-import license online application procedure, and they are listed below:
- Visit the official portal of the DGFT website.
- If this is your first time, click Register and fill out your contact information, including name, phone number, and email address.
- After registering, log in to the official portal and select "online IEC application".
- You'll be taken to the application form, and you must fill in all the necessary information, including your name, address, PAN card number, bank account information, and more.
- Make your application fee payment using your preferred method of payment.
- After paying the fee and sending all required documents, double-check your information and press the submit button.
- You can now track your application's status. Once approved, you will receive an import export license for business on your registered email address.
Exemption of Import Export License
The following do not require an import-export code:
- Someone who is exporting or importing goods for personal use and not for business activities.
- Official departments or ministries of state and central government.
- If the individual exports or imports goods to/from Myanmar or Nepal, and the consignment does not value more than INR 25000.
Conclusion
Here, we have mentioned all the crucial information about obtaining an import export code online. If you still require more help with the procedure, contact Lawgical India, and our team of legal experts will help you through the entire process. Contact us to learn more about our services.
