Benefits of IE Code Registration
IE Code Importance
Any business wanting to commence with the import and export in India require an IE Code. The Director-General of Foreign Trade issues the Import Export Code and is essentially a 10 digit code with lifetime validity. The IE Code is a necessary document in the import and export business.
The Import Export Code is a criterion that helps the business to grow. With time the number of businesses wants to tap the global markets. Just like carrying business in India comes with a lot of rules and regulations. While carrying out business certain laws need to be adhered to. Import and Export are two important components of International business. There are certain licenses and registrations needed while making any exports or imports. The importers will not be allowed to send commodities whereas the exporter would not be able to claim the export benefits from the DGFT without the IE code. Also, the banks would require the IEC if you wish to send money abroad.
Once issued the IE Code is valid throughout the existence of the entity and there is no need to renew the code.
Importance of Import Export Code
Businesses have a great option to enter the international market with export and import of the products and the services they are involved in. The IE code is a major requirement while entering the international market as it supports the growth and the development of the business to a certain extent. There are various advantages of getting an Import Export Code here we have listed a few of them:
International market unlocks: As the IE Code is a requirement for the import and the export business they allow the products to reach the international market. IE code makes the entry of the Indian business in the international smoother and opens doors for growth and expansion.
Online registration: The process to find the IE Code is completely online and hassle-free with little document submission.
Less document requirement: To obtain IE Code in India very few documents are required. Here is the list of mandatory documents that are required for obtaining the Import Export Code.
- PAN of the applicant
- Canceled Cheque
- Passport size photo of the applicant
- Address proof of the applicant
Lifetime Validity: IE Code is a lifetime registration that is valid as long as the business is in existence. Hence, there are no issues with updating, filing, and renewing Import Export Code registration. The IE registration is valid till the business is in existence or the registration is not revoked or surrendered.
Reduces illegal goods transportation: The most basic requirement for the Import-Export code is that you need to provide authentic information. Without providing proper information IE code cannot be obtained. This criterion makes transportation of illegal goods impossible.
Benefits of the schemes: IE code has huge benefits for both importers and exporters. The registered business entities will be able to avail the benefits in form of the subsidies from the Customs, Export Promotion Council or other authorities. With LUT filing under GST, the exporters can make exports without paying the taxes. In case the exports are made with payment of tac the exporter can claim the refunds of the paid tax amount.
Compliances: Unlike other tax registration the person carrying import or export does not require to fulfill any specific compliance requirement such as the annual filing or the return filings.
The Import Export Code is a primary document that is necessary for commencing with Import-export activities. For exporting or importing any goods or services the IE code is to be obtained.IEC has numerous benefits for the growth of the business. Certainly, you cannot ignore the necessity of IE code registration as it is mandatory. You can apply for Import Export code through IndiaFilings and obtain it within 6 to 7 days.