IndiaFilings / Learn / Business Startup / Start Export Business
How to Start an Export Business - IndiaFilings

How to Start an Export Business

India is the 14th largest exporter in the world, exporting a wide range of goods and services. India's exports are growing each year and in a recent report by HSBC, India is set to be among the top 5 exporters in the world by the year 2030. With the Indian Government aggressively promoting manufacturing in India through campaigns like Make in India,  exports from India is set to grow at a fast pace over the coming decade. In this article, we look at the licenses and registrations required to start an export business in India.

[caption id="attachment_2043" align="aligncenter" width="817"]Top-Export-Destinations-From-India-in-2030 Top Export Destinations From India in 2030

Business Plan

Before starting any business, it is important to draw out a business plan and plan of action. For those starting an export business, it is important to cover the following aspects thoroughly:

  • Product or service to be exported
  • Souring of raw material for manufacturing or delivery of the product or service
  • Costing of input costs
  • Working capital requirement
  • Long-term capital requirement (loan or equity)
  • License or registration required for exporting
  • Market study
  • Customer study
  • Transportation and logistics

Once, the above information is gathered and profitability is estimated, the Entrepreneur can commence the activities required to secure the necessary registrations and licenses.

Business Registration

The first item on any plan of action for starting an export business is deciding and registering the business entity. In the case of export business, it is recommended that Entrepreneur launch their venture as a Private Limited Company. Private Limited Company offers the promoters of the business - limited liability protection, transferability, easy access to bank loans and more. Further, foreign customers or clients prefer or mandate dealing with a registered corporate entity in India. Proprietorships and Partnership firms are usually classified as an unregistered business. Therefore, the registration of a Private Limited Company is necessary while starting an export business.

Tax Registration

After completing the business registration process, obtain the tax registration in the name of the business entity. PAN or Permanent Account Number is the first tax registration necessary for any new business. After obtaining the PAN, the business can open a bank account and start the process for loan syndication or equipment or raw material purchases - to commence businesses. Goods or services exported from India do not attract GST. However, GST Registration may be required for the business as it would purchase raw materials from outside of the state and service tax registration may be required to bill domestic clients. Therefore, it is recommended that after opening the bank account, the necessary steps are taken to obtain the relevant tax registration.

Import Export Code (IE Code)

An Import Export Code or IE Code is a must for any business involved in the export of goods from India. The Directorate General of Foreign Trade (DGFT) gives a unique IE Code to the businesses to track imports and exports from India. The following documents must available for obtaining IE Code in the name of the business:

In the case of the applicant is a Company/LLP/Partnership Firm:
  • Name of the Company/LLP/Partnership Firm
  • Certificate of Incorporation / Partnership Deed
  • MOA & AOA of the Company, in case of LLP / Partnership Firm, the Partnership Deed
  • Directors/Partners Identity Proof
  • Directors/Partners Address Proof
  • List of Directors / Partners
  • Bank Reference Letter
In case of the applicant being a Person or Proprietorship
  • Name of the Proprietorship / Individual
  • Identity Proof
  • Address Proof
  • Bank Reference Letter

Other Licenses or Registrations

To start an export business, the above registrations and licenses may be sufficient in most states. However, based on the state, further registration such as shop & establishment act license, factory license, ESI / PF registration, etc., may also be required. Also, in case the business proposes to manufacturer and export items like food products, approval from FSSAI may also be required.

To start an export business in India, visit IndiaFilings.com or talk to an IndiaFilings Business Advisors.
IndiaFilings
Updated on: February 5th, 2020

Popular Post

Download ePAN Card – Get ePan from NSDL & UTIITSL
80 Small Business Ideas

Starting a small business can be a transformative venture, offering the exciting opportunity...

Nadakacheri – Income Caste Certificate Download Online in Karnataka
TDS Rate Chart for Financial Year 2025-2026 (Assessment Year 2026-2027)

Tax deduction at source, shortly and popularly known as TDS, was introduced by the Income Tax...

Divorce Rules in India: Everything You Need to Know
How To Download GST Registration Certificate Online?

Goods & Services Tax Certificate is issued to people who are registered under GST...

PAN Card Cancellation Online
Find Complete Details of GST Registration Procedure

GST registration applies to all individuals and entities supplying goods or services in India. GST...

Check Your PF Claim Status Online Using PF Tracking ID
Gift Tax in India: Applicability, Exemptions and Rules

Gift tax in India is applied when the value of the received gift exceeds ₹50,000 in the...

Check Your PF Claim Status Online Using PF Tracking ID
Old Regime vs New Regime 2025: Which Tax Regime is Better for You?

The Union Budget 2025 has brought significant changes to India’s personal income tax structure, raising the...

Check Your PF Claim Status Online Using PF Tracking ID
What is the minimum turnover for GST?

The Goods and Services Tax (GST) is an indirect tax system introduced in India in 2017. It functions...

Check Your PF Claim Status Online Using PF Tracking ID
How can I check if a trademark is registered?

A trademark search is simply checking if another person or organization does not already own the...

Check Your PF Claim Status Online Using PF Tracking ID
Section 194H of the Income Tax Act: TDS on Commission & Brokerage

Section 194H of the Income Tax Act in India mandates the deduction of Tax at Source (TDS) on commission or brokerage...

Check Your PF Claim Status Online Using PF Tracking ID
Section 80G Deduction - Income Tax Act

Section 80G Deduction is a facility available in the Income Tax Act which allows taxpayers to...

Check Your PF Claim Status Online Using PF Tracking ID
Crypto Tax in India: Taxation On Cryptocurrency

The Income Tax Department (ITD) has not provided specific guidance on crypto taxes for Indian investors. However...

Check Your PF Claim Status Online Using PF Tracking ID
Internal Audit Applicability Under Companies Act, 2013

Internal audit applicability is a critical concept for companies in India, impacting various...

Check Your PF Claim Status Online Using PF Tracking ID
Difference between Private and Public Company

In the business world, two main types of companies exist: private company and public company...

Check Your PF Claim Status Online Using PF Tracking ID
New GST Rules for Rent

Ministry of Finance vide a Notification No 05/2022- Central Tax (Rate) dated 13.7.2022 has issued...

Check Your PF Claim Status Online Using PF Tracking ID
GSTR-1 and GSTR-3B Due Date Extension - New Due Dates For January 2025

The Central Board of Indirect Taxes and Customs (CBIC) has recently announced an extension...

Check Your PF Claim Status Online Using PF Tracking ID
Different Depreciation Rates under Companies & Income Tax Act

Depreciation is a key concept in finance and accounting. It helps us manage how the value of...

Check Your PF Claim Status Online Using PF Tracking ID
Form 10IA - Section 80DD Deduction

Form 10IA of the Income Tax Department must be filed by taxpayers claiming income tax deduction...

Check Your PF Claim Status Online Using PF Tracking ID
GST on Used Cars: New 18% Tax Rate Explained

The Goods and Services Tax (GST) system in India has been a significant reform in the country's...

Check Your PF Claim Status Online Using PF Tracking ID
MSME Registration - Udyam Registration

India's Gross Domestic Product (GDP) benefits significantly from the substantial...

Check Your PF Claim Status Online Using PF Tracking ID
Section 43B(h) - New MSME 45 Days Payment Rule

The Finance Act, 2023 introduced the MSME 45-day payment rule under Section 43B(h) of the Income Tax Act...

Check Your PF Claim Status Online Using PF Tracking ID
Direct Tax Vivad Se Vishwas (DTVSV) Scheme, 2024

The Direct Tax Vivad Se Vishwas (DTVSV) Scheme, 2024, was announced by Union Finance Minister...