In this growing world of competition, everyone is trying to own their enterprise and become their boss but that’s not an easy job. There are many things that need to be taken into consideration for starting an enterprise and one such is the IEC Registration and License. Obtaining the Import-Export code registration is one such requirement one needs to fulfill for starting a small business of Importing or exporting from India. In this article, we will discuss How to obtain IEC Registration for Small businesses?
Authority That Issue Import Export Code?
The Import-export code is issued by the Director-General of Foreign Trade (DGFT) and it is a 10-digit code that has lifetime validity. The IEC registration for small businesses is for that individual who is looking to commence his own import/export business in the country.
When Import Export Code is required?
An IEC code is required in the following circumstances:
- When an importer makes transactions abroad through banks.
- At the time of receiving foreign currency in an importer’s account.
- When an exporter has to parcel his shipments abroad.
How can a small business obtain IEC Registration?
The following steps are to be followed to get IEC Registration:
Step 1: Prepare an Application form: In the specific format – Aayaat- Niryaat Form ANF-2A and then file it to the respective regional DGFT office.
Step 2: Prepare the requisite documents: documents concerning your identity, legal entity, address proof along with bank details, and the certificates in respect of Form ANF 2A.
Step 3: File the application: After filling the application form, you should immediately file it with DGFT via DSC and further make the payment.
Step 4: Obtain IEC: The last step is to obtain the IEC in a soft copy format from the government.
List of Documents Required for IEC
- Pan card of individual or firm or company;
- Copy of individuals’ voter ID or Aadhaar card or Passport;
- Canceled cheque copy of the current bank account of individuals or companies or firms’.
- Copy of rent agreement or electricity bill;
- A self-addressed envelope for delivery of IEC certificate through the post.
Benefits of IEC License
- Filing of returns not required: Filing of returns not required: There is no requirement of regular returns filing after getting an IEC license.
- Lifetime Validity: IEC Registration Certificate gives you a lifetime validity to your business that means no need for any renewal.
- Easy processing: Within 10-15 days processing of IEC registration is easily being done after the submission of the application.
- Expansion of business: IEC helps you to take your services and products to the next level and thus grow your business.
- Access to several Benefits: Companies can avail several benefits of their import/export from DGFT, customs, etc.,
IEC is not mandatory for traders who have already registered under GST, as per the latest notification issued by the government of India.
An IEC registration is capable of unlocking the huge potential of business growth and opportunities.
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