Import Export Business: Overview, Documents Required & Procedure

India’s growing presence in the global marketplace has made the import export business an increasingly attractive venture for entrepreneurs and established companies. By facilitating the exchange of goods and services across international borders, this sector plays a vital role in driving the country’s economic growth, generating employment opportunities, and fostering innovation. For Indian businesses, understanding the regulatory landscape, securing the necessary documentation, and following the correct procedures are essential to establish a successful import export company. This article provides a comprehensive overview of the import export business in India, detailing the key documents required and outlining the step-by-step procedures to help you embark on your global trading journey with confidence.

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What is Import Export Business?

An import export business involves buying and selling goods and services across international borders to meet market demand and capitalise on global opportunities. It requires a deep understanding of international trade regulations, market trends, and logistics, as well as the ability to build strong supplier and customer relationships. In India, this sector spans a wide range of products—from agricultural commodities and textiles to electronics and speciality goods - supported by government schemes and export promotion councils to boost competitiveness and global reach. The Directorate General of Foreign Trade (DGFT), under the Ministry of Commerce and Industry, regulates and promotes import-export activities by issuing Importer-Exporter Codes (IECs) and implementing the Foreign Trade Policy. 

Benefits of Starting an Import Export Business

Below, we have provided the major benefits of starting a import and export business:

• Increased Market Reach: Access customers and suppliers worldwide, expanding beyond the limitations of the domestic market.
• Higher Profit Potential: Tap into international demand and benefit from favorable pricing and currency exchange rates.
• Diversification of Revenue Streams: Reduce dependence on a single market and spread business risks across multiple regions.
• Access to New Technologies and Products: Import advanced technologies and innovative products to stay competitive and enhance offerings.
• Improved Economies of Scale: Operate on a larger scale, lower per-unit costs, and increase overall profitability.
• Contribution to Economic Growth: Generate foreign exchange, stimulate related industries, and support national economic development.
• Job Creation: Create employment opportunities in areas such as logistics, manufacturing, marketing, and finance.
• Foster International Cooperation: Promote cultural exchange, strengthen diplomatic ties, and encourage mutual growth between countries.

Types of Import Export Business

These are the typical types of Import Export Business one can undertake and execute the operations:

• Export Trading Company (ETC): An Export Trading Company acts as an intermediary that identifies international market opportunities and connects domestic producers with foreign buyers. ETCs handle the complexities of export logistics, documentation, and compliance, making it easier for manufacturers to access global markets without building their own export infrastructure.
• Export Management Company (EMC): An Export Management Company serves as an outsourced export department for local manufacturers. EMCs manage the entire export process—including market research, buyer identification, negotiations, shipping, and regulatory compliance—allowing producers to focus on their core business while expanding internationally.
• Import-Export Merchant: Import-export merchants operate independently by purchasing goods directly from manufacturers and selling them in foreign markets. They assume full commercial risk, manage inventory, and handle all aspects of logistics, aiming to profit from price differences between countries.
• Export Trader (Trading House/Export Agent): Export traders facilitate transactions between domestic suppliers and international buyers, sometimes taking ownership of goods or acting as agents for a commission. Their expertise lies in sourcing products and navigating the complexities of cross-border trade to ensure smooth transactions.
• Export Manufacturer: Export manufacturers are businesses that produce goods specifically for export. They leverage their production capabilities to meet international demand, often adapting products to suit foreign market requirements and regulations.
• Service Exporter: Service exporters provide intangible offerings such as IT, consulting, financial, or logistics services to clients in other countries. This segment is increasingly important in India’s export landscape, contributing significantly to foreign exchange earnings and global business integration.
• Import Business (by Product Type): Import businesses can also be categorised by the types of goods they bring into the country, such as consumer products, industrial materials, capital goods, or food items. Each category requires specialised knowledge of sourcing, compliance, and market demand to ensure successful operations.

What is the Minimum Investment for Import Export Business in India?

The minimum investment for import export business in India generally ranges from ₹40,000 to ₹1.5 lakh, depending on the product, business model, and scale. Lower investments are sufficient for service-based or intermediary roles, covering essentials like business registration, IEC application, and basic marketing. Trading in physical goods requires more capital for inventory, packaging, and shipping. Starting with a focused approach and scaling up gradually helps manage risks and keeps initial costs manageable.

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Documents Required to Start an Import Export Business

To legally operate an import export  company in India, several key documents are required to ensure compliance with customs, tax, and regulatory authorities:

• Importer Exporter Code (IEC): A mandatory 10-digit code issued by the Directorate General of Foreign Trade (DGFT), required for all import and export activities.
• Business Registration Certificate: Proof of business establishment, such as a proprietorship, partnership, LLP, or company registration.
• Permanent Account Number (PAN) Card: Issued by the Income Tax Department, this is required for business identification and tax purposes.
• Current Account in Business Name: A bank account opened in the name of the business for handling international transactions.
• Commercial Invoice cum Packing List: Details the goods, their value, and packaging information for customs clearance.
• Bill of Lading or Airway Bill: A transport document issued by the carrier, confirming shipment of goods.
• Bill of Entry (for Imports) / Shipping Bill (for Exports): Customs documents required for the clearance of goods into or out of India.
• Import or Export License (if applicable): Required for restricted or regulated goods as specified by Indian authorities.
• Certificate of Origin: Certifies the country where the goods were manufactured, often needed for preferential duty benefits.
• Insurance Certificate: Proof of insurance coverage for goods in transit.
• Registration-cum-Membership Certificate (RCMC): Issued by relevant Export Promotion Councils for availing export incentives and benefits.
• Foreign Exchange Control Form: Required for certain transactions to comply with RBI and FEMA guidelines.
• Additional Product-Specific Certificates: Such as health, inspection, or technical standard certificates, depending on the nature of the goods.

Learn more: Documents Required for Import Export Business in India

How to Start an Import Export Business in India?

Starting an import-export business in India begins with identifying the right product, understanding international market demand, and complying with government regulations. You’ll need to register your business, obtain an Import Export Code (IEC), and understand the legal and logistical requirements. Once the basics are in place, you can begin setting up either an import or export operation, depending on your business goals. Let’s get into the  procedure for starting the import and export business separately.

Procedure to Start an Import Business in India

Starting an import business in India involves a series of structured steps to ensure legal compliance and smooth operations. Here’s a simple guide to the import business seup process:

• Conduct Market Research: Identify products with demand in the Indian market and research potential international suppliers. Understand import regulations, customs duties, and any restrictions on the goods you plan to import.
• Choose a Business Structure: Decide whether to operate as a sole proprietorship, partnership, LLP, or private limited company. Register your business and obtain a PAN card in the business name.
• Open a Current Bank Account: Set up a current account in your business name to handle all import-related transactions.
• Obtain Importer Exporter Code (IEC): Apply for an IEC from the Directorate General of Foreign Trade (DGFT). This unique 10-digit code is mandatory for all import activities in India.
• Register for GST: Obtain GST registration for your business, as it is required for tax compliance on imported goods.
• Comply with Customs and Trade Policies: Register with customs authorities, obtain an Authorized Dealer Code (AD Code) from your bank, and familiarize yourself with India’s EXIM policy and customs procedures.
• Secure Additional Licenses (if required): Depending on your product, you may need extra licenses or certifications, such as FSSAI for food items or specific approvals for restricted goods.
• Establish Supplier and Logistics Network: Build relationships with reliable international suppliers, freight forwarders, and customs brokers to ensure efficient and cost-effective import operations.
• Arrange for Import Documentation: Prepare all necessary documents, including purchase orders, invoices, bills of lading, insurance, and customs clearance paperwork.
• Plan Inventory and Distribution: Organize warehousing, inventory management, and distribution channels to deliver imported goods to your target market efficiently.

Procedure to Start an Export Business in India

Setting up an export business in India follows a similar framework but with a focus on reaching international markets. Here’s how to get started:

• Establish Your Business Entity: Register your business as a sole proprietorship, partnership, LLP, or private limited company, and obtain a PAN card.
• Open a Current Bank Account: Create a current account in your business name for handling export transactions.
• Obtain Importer Exporter Code (IEC): Apply for an IEC from the DGFT, which is essential for any export activity from India.
• Register for GST: Get GST registration for your business to comply with tax laws on exported goods and services.
• Register with Export Promotion Council: Obtain a Registration-cum-Membership Certificate (RCMC) from the relevant Export Promotion Council to access export incentives and support.
• Select Products and Target Markets: Choose products with export potential and research suitable international markets. Analyse demand, competition, regulations, and market entry requirements.
• Find International Buyers: Identify and connect with potential overseas buyers through trade fairs, online platforms, export promotion councils, and digital marketing.
• Arrange Logistics and Shipping: Coordinate with freight forwarders, shipping companies, and customs agents to manage the export logistics, packaging, and transportation.
• Prepare Export Documentation: Complete all required export documents, such as commercial invoices, packing lists, shipping bills, certificates of origin, and insurance certificates.
• Comply with Customs and Foreign Exchange Regulations: Ensure your shipments meet Indian customs requirements and follow RBI and FEMA guidelines for receiving export payments.

Procedural Difference Between Import and Export Business 

In the table below, we have provided the procedural differences between import and export business in India:

Policies under Import-Export Business in India

In the following, we provided the list of policies under Import-export business in India:

• Foreign Trade Policy (FTP): India’s Foreign Trade Policy, formulated by the Directorate General of Foreign Trade (DGFT), provides the regulatory framework for all import and export activities. The latest FTP emphasizes trade facilitation, digitalization, and the development of export hubs, and classifies goods under Free, Restricted, Prohibited, and State Trading Enterprise (STE) categories for both imports and exports.
• Export and Import Classification: All merchandise goods are classified using the 8-digit ITC-HS code system, with Schedule I governing imports and Schedule II governing exports. This standardized classification streamlines procedures, reduces ambiguity, and aligns India’s trade system with global norms
• Foreign Exchange Management Regulations: The Reserve Bank of India (RBI) oversees foreign exchange transactions related to trade. The Draft Trade Regulations and Directions 2025 aim to simplify and consolidate all instructions for authorized dealer banks, enhance ease of doing business, and provide operational flexibility for handling export and import payments.
• Export Promotion Schemes: Policies such as the Export Promotion Capital Goods (EPCG) Scheme and various sector-specific incentives are designed to support exporters by reducing costs on capital goods imports and encouraging value addition in India.
• Customs and Trade Facilitation: The Central Board of Indirect Taxes and Customs (CBIC) implements measures to streamline customs clearance, reduce processing times, and support the ‘customs ONE’ plan to boost India’s share in global trade.
• Export Promotion Mission: Recent budgets have increased allocations for export promotion, with targeted support for high-growth sectors such as electronics, pharmaceuticals, engineering goods, and chemicals, aiming to strengthen India’s position in global value chains.
• Digital Compliance and Documentation: The move towards digital filing of export declarations, use of electronic shipping bills, and simplified reporting requirements reflect the government’s push for digitalization and reduced paperwork in trade procedures.
• Special Provisions for Sensitive Goods: Items such as Special Chemicals, Organisms, Materials, Equipment, and Technologies (SCOMET) are regulated under specific provisions to ensure compliance with international obligations and security concerns.

Schemes for Import-Export Business in India

Here is the list of schemes designed for import export business in India to ease the process:

• RoDTEP (Remission of Duties and Taxes on Exported Products): This scheme refunds embedded central, state, and local taxes that are not reimbursed under any other scheme, effectively reducing the cost of exports and enhancing competitiveness.
• EPCG (Export Promotion Capital Goods) Scheme: EPCG allows exporters to import capital goods at zero customs duty, provided they fulfill specific export obligations. This helps Indian businesses upgrade technology and improve export quality.
• Advance Authorisation Scheme: Under this scheme, exporters can import raw materials and inputs duty-free, provided they use them to manufacture products for export. This reduces production costs and boosts export margins.
• Export Promotion Mission (2025): Announced in the Union Budget 2025-26, this new mission aims to provide easy credit, enhance factoring services, and help MSMEs tackle non-tariff barriers in overseas markets. The mission is expected to roll out new schemes focused on credit access and financial support for exporters, especially MSMEs.
• Trade Infrastructure for Export Scheme (TIES): TIES provides financial assistance for the development of export infrastructure such as testing labs, cold storage, and logistics hubs, supporting smoother and more efficient export operations.
• Duty Drawback Scheme: This scheme refunds customs duties paid on imported inputs used in the manufacture of exported goods, ensuring that Indian products remain cost-competitive in global markets.
• District Export Hubs and Towns of Export Excellence: These initiatives support the development of localized export clusters, providing targeted support and infrastructure to boost exports from specific regions or sectors.
• Market Access Initiative (MAI): MAI supports exporters in accessing new markets through financial assistance for participation in trade fairs, market research, and branding activities

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FAQS

1. What is an import-export business in India?

An import-export business in India involves trading goods or services across international borders, where businesses either bring foreign products into the Indian market (import) or sell Indian goods and services abroad (export).

2. Is an Importer Exporter Code (IEC) mandatory for import and export in India?

Yes, obtaining an IEC from the Directorate General of Foreign Trade (DGFT) is mandatory for all businesses engaged in import or export activities in India, except for goods imported for personal use or exempted categories.

3. What are the key documents required to start an import-export business in India?

Essential documents include the IEC, business registration certificate, PAN card, GST registration, current bank account, and product-specific licenses if required. For each shipment, documents like commercial invoice, packing list, bill of lading/airway bill, and certificate of origin are necessary.

4. How much does it cost to start an import-export business in India?

The initial investment typically ranges from ₹25,000 to ₹1.5 lakh, depending on business structure, registration, documentation, and the scale of operations.

5. What are the main government bodies regulating import-export in India?

The Directorate General of Foreign Trade (DGFT) oversees licensing and policy, while the Reserve Bank of India (RBI) regulates foreign exchange, and the Central Board of Indirect Taxes and Customs (CBIC) manages customs procedures.

6. Are there any government schemes or incentives for exporters in India?

Yes, schemes like RoDTEP, EPCG, Advance Authorisation, and the Duty Drawback Scheme offer incentives such as tax refunds, duty exemptions, and financial support to boost exports.

7. What are the main challenges faced by import-export businesses in India?

Key challenges include complex regulations, high transaction costs, logistical delays, infrastructure bottlenecks, and navigating high tariffs and protectionist policies.

8. What are the major steps to start an import business in India?

Choose a business structure, register your business, obtain IEC and GST registration, open a current account, secure necessary licenses, and comply with customs and documentation requirements.

9. How do I find international buyers or suppliers for my import-export business?

You can connect with buyers and suppliers through trade fairs, B2B portals, export promotion councils, and digital marketing platforms.

10. Do I need product-specific licenses or permits for certain goods?

Yes, some goods require additional licenses or permits (such as FSSAI for food, or BIS certification for electronics), depending on government regulations for restricted or sensitive products.

DINESH P Expert

Updated on: June 3rd, 2025