How to Start Import-Export Business in India?
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 the trade, you can always seek help from external sources. Institutions such as Euro Exim Bank offer customized 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.
