How to Start Import-Export Business in India?

How to start import-export business in India
How to start import-export business in India
Starting an import-export business in India — Euro Exim Bank

Import-Export Business — Introduction

· In recent years, entrepreneurship has become a mainstream career choice for thousands of Indians

  • This is because of the fact that setting up your own company gives you a greater degree of freedom and also helps you in contributing to society

· International trade is one area that provides excellent growth prospects to Indian entrepreneurs

  • Setting up your own business in the country has become much easier in recent times
  • Establishing an import-export business requires you to follow certain steps and acquire a few permissions

· This blog assesses the key steps that need to be followed in order to start an import-export business in India

Starting Your Own Import-Export Business

· Establishing your own import-export business is not as challenging as it sounds

  • You simply need to make sure that you have all the required documents and clearances in place

· The first step is to obtain a Permanent Account Number (PAN) card for your business

  • Additionally, all the partners in a business must have their own identity proofs in order to start a company

· Next, you need to decide on the type of business entity that you wish to register

  • There are a few options to choose from, including a sole proprietorship, a partnership, or even a private limited company. It would help if you chose the option that suits your needs

· Another important step is to register for a current account. Such a bank account is needed in order to transact with various parties, including your customers

· In addition to the above, you will also need to apply for an Import Export Code (IEC)

  • An IEC is mandatory for you if you wish to start an import-export business. This code includes ten digits, and it is issued by the DGFT (Director General of Foreign Trade)

· Once you have obtained the IEC, you need to decide on the product that you wish to import or export

  • It would be best if you were extremely careful in choosing the right product. Ideally, you should choose goods that are in high demand in the international market

· You will also need to acquire a Registration Cum Membership Certificate (RCMC). This certificate will help you in getting affiliated with a trade council, thereby improving your trade prospects

· Next, you need to decide on the markets that you would be targeting

  • It is advisable to choose markets that do not face major risks such as political risk and economic risk
  • The market that you choose should also be receptive to Indian traders

· Finally, you need to find the right buyers or sellers for your product. There are various traders active in each market, and you will need to be meticulous while making your decision

  • You could take the help of trade platforms in order to select the most appropriate buyer/seller for your product

· Once you have followed all of the above steps, you are ready to start trading. Import-export can prove to be a highly profitable business if you make smart decisions along the way

Conclusion

· To conclude, it is clear that the Indian startup industry continues to grow. In such a scenario, starting an import-export business can prove to be a great idea. If you are unsure about any aspects of trade, you can always seek help from external sources. Institutions such as Euro Exim Bank offer customised support in the form of financial instruments and bespoke trade advisory services. Euro Exim Bank offers financial instruments such as Bank Guarantees and Letters of Credit (LCs). Further information about Euro Exim Bank and its key product offerings is available here.

Written by

We deploy the latest technology to ensure uninterrupted payment processing and issuance of trade finance instruments from a single point within a shorter period

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store