Starting an import export business in India allows entrepreneurs to trade goods and services globally. It is regulated under the Directorate General of Foreign Trade (DGFT) and requires proper registration, documentation, and compliance with tax and customs laws.
1. Select Your Product or Service Segment
The first step is identifying a viable trade category:
- Agricultural products
- Textiles and garments
- Handicrafts and artisan goods
- Engineering goods and machinery
- Pharmaceuticals
- IT and digital services
- Consumer goods and electronics
Market research is essential to assess demand, pricing, and competition in international markets.
2. Business Structure Registration
Choose a legal structure:
- Proprietorship (small scale exporters)
- Partnership Firm
- LLP (Limited Liability Partnership)
- Private Limited Company (preferred for global trade credibility)
A registered entity is mandatory for obtaining export-import code.
3. Obtain Import Export Code (IEC)
The IEC is a mandatory license issued by the DGFT.
Key points:
- Required for all import and export transactions
- Lifetime validity (no renewal required)
- Applied online through DGFT portal
- PAN-based registration
Without IEC, no customs clearance is permitted.
4. GST Registration
- GST registration is mandatory for export/import businesses
- Exports are considered zero-rated supply under GST
- Input tax credit and refund facility available
- LUT (Letter of Undertaking) is required for export without paying IGST
5. Open a Current Bank Account
You must open a current account in the business name.
Bank requirements:
- IEC certificate
- GST certificate
- Business registration proof
- KYC documents
This account is used for foreign currency transactions.
6. Understand Export Import Documentation
Key documents include:
- Commercial Invoice
- Packing List
- Shipping Bill
- Bill of Lading / Airway Bill
- Certificate of Origin
- Insurance Certificate
Proper documentation ensures smooth customs clearance.
7. Compliance with Customs and DGFT
- Follow Foreign Trade Policy guidelines
- Classification under HSN/SAC codes
- Compliance with customs duty regulations
- Adherence to restricted/prohibited goods list
8. Logistics and Shipping Setup
You will need:
- Freight forwarders
- Customs clearing agents (CHA)
- Shipping companies
- Warehousing solutions
Efficient logistics reduces delays and costs.
9. Finance and Incentives
Exporters may benefit from:
- RoDTEP (Remission of Duties and Taxes on Exported Products)
- Duty drawback schemes
- Export promotion capital goods (EPCG) scheme
- Government subsidies for exporters
10. International Marketing Strategy
- Trade platforms like Alibaba, IndiaMART
- B2B portals and global marketplaces
- Participation in trade fairs and exhibitions
- Digital marketing for global reach
Conclusion
Starting an import export business in India requires proper legal registration, IEC code, GST compliance, and strong logistics planning. With structured execution and global market research, it can become a highly scalable and profitable international trade venture.