Export Business generally means exporting or selling goods from the native place to a foreign place. The word export is generally used to display a business between two countries. For the growth of a nation exports are a key factor as that is what gives you profit and keeps your economy growing. In India, export businesses are an important sources of revenue both for the government and the people. Here is a deep insight on how you can start an export business in India.
Make your Mind on what will you export
You need to make up your mind on what will you export. It can be anything depending on your choice and feasibility study. Export business succeeds when the demand in the exporting country of your good is higher and the return is high as well. Some profitable products which you can export from India to other countries are rice, vegetables, fruits, medical equipments, textiles, etc.
Where will you Export
You need to figure out that where will you export your goods. Export gives better returns when you export your goods and services to a country that has higher per capita income so that you can sell goods on better margin. Also the demand should be high in place where you are planning to export. This can be well explored by consulting experts and visiting people of those countries. You can export products from India to all over the world but nearby countries like Saudi Arabia, UAE, Malaysia, Iran, Austalia, etc imports lots of products from India including rice, vegetables, spices and garments.
Documents required to start an export business
The most important thing is that you need to first setup your business. Get a name for your business, its logo, rule book and all other formalities. You will have to first get yourself registered into the GST regime for payment of tax. You need to also get yourself registered as an income tax paying citizen.
Documents required for starting your business:
PAN Card: You need to first get your own PAN card. If your business is sole proprietorship then an individual PAN card is okay but if it is a company then you will have to get a PAN card for your company from the income tax department.
GST Registration: GST registration can be done online by visiting the GST site. You need to register yourself with the required details like PAN card, Aadhar card, residential proof, photo, bank account, etc.
Current Bank Account: Open a current bank account for your business from the bank of your choice. You definitely need a bank for transfer of funds. If your business is going to be quite big then you can also open account in some international banks.
Get an Office: You need to have your office address for running your business. Based on employee number and your requirement you can either rent a space or can buy based on your budget.
Get Import Export Code – IEC
To export your goods to other countries you require an IEC. IEC is import export code that is generated from Director General of Foreign Trade (DGFT). IEC is a ten digit code, a must for exporting and importing goods and services between two or more countries. The IEC code has a lifetime validity. IEC is a must as importers will require it while transferring money abroad. Exporters need it while shipment. Banks will require IEC while either sending money abroad or while accepting money from abroad. IEC also gives benefit while passing your shipment through customs. So it is better that you have it if you are going to start an export business. It will take around 7-10 days to get an IEC.
Documents required to get Import Export Code IEC
- PAN card of the Business or in case yours if the business is of proprietorship
- Applicant’s photograph
- Cancelled cheque of the bank account of the business
- Rs 1000 as fees for application
You can apply for IEC online by visiting this website http://dgft.gov.in/
The Authorized Dealer Code:
If you are an exporter then you will be certainly exporting something by some means. The three common forms are sea, air and road. You need to get yourself registered at the route from where your goods are to be exported. In case of air shipment; you need to register yourself at the air customs and in case of sea, you need to register at sea port customs and similarly for road customs.
Register with Central Excise Department:
There are many duties on which excise tax is charged and there are many benefits which you can avail as an exporter of certain products. You can register yourself at the central excise department to avail benefits.
Get RCMC Registration:
RCMC stands for Registration Cum Membership Certificate. Government agencies support exporters in many ways for exporting certain goods. They encourage them by helping them through various ways. Even financial help is offered when required. To avail such benefits you need to register yourself to the RCMC. Based on what product you export you have to get the certificate from that particular authority. There are series of authorities like APEDA, CHEMEXCIL, CEPC, etc. from where you can register and get benefits.
Get a Custom House Agent:
Appoint a Custom House Agent who is a licensed person to do transaction with any business relating export and import at the custom station. A CHA makes your job quite easy as you don’t need to place your man at the station while exporting goods. There are many more benefits of custom house agent which you will get to know after you appoint him.
Make deals with importers in other countries
As you have to export your god to other countries you need to tie up with importers and dealers from other countries. It can happen one on one and it can also happen by joining some groups or through third person. There are different portals both online and offline where you can make contacts for your exports. For making such contacts you can have to travel to the destination of your export, meet with some people associated with the business, with some export agents, officials, etc. as they can make better opportunities for your business.
Join groups related to your area of export
As mentioned earlier, you can join groups, make close contacts with groups that deal in the similar area of business to explore more opportunities. Export profits grow when you have wide range of options available for your business. Such groups are interdependent groups that help each other for mutual benefits. The profit can be unpredictable sometimes so don’t miss opportunities to make contacts and associate with people.
Hire an Expert
Apart from the mentioned issues there are many more issues you may face where you may go blank as what to do. At that time you need advice from an able person on exports and imports. Don’t shy away from hiring such experts who are well versed in international business, export and import. Hiring such people may benefit you immensely from saving taxes, reducing export charges and maximizing profits. An expert may also help you in giving better export opportunities and expanding your export circle. This will automatically increase your profit margin as well as your export.
In last, the most important part is to grow with time and be up to date. With the changing times and new rules and regulation, tech savvy world and digitalization it is necessary to be in competition if you want to survive in this business. So tie up your lace and be ready to export from India.