Nowadays, everybody wishes to expand the business globally and generate as much revenue as possible. Undoubtedly, the business world has become quite competitive and hence, the idea of starting the...
Import Export Code or IEC is a ten digit code which is issued by Directorate General of Foreign Trade (DGFT), Government of India and Department of Commerce. All the Indian Companies that intend to carry Import Export business must obtain the IEC Code. One can avail several benefits with IEC License code under the schemes like SEIS and MEIS. IEC is crucial for those Entrepreneurs who seek to outreach the national boundaries and commence business on a global scale. Though the IEC Code Registration process is alike for all types of business structures, yet its documentation differs. This write-up will provide exclusive information about the procedure, benefits and other aspects related to IEC Code for Partnership Firm.
What is IEC Code License?
IEC refers to a ten-digit identification number that one needs to attain to carry out the business of selling of goods & services in the international market. There are the fundamental features of Import Export Code which are given below:
- IEC is compulsory for every importer and exporter in India.
- Once a Firm acquires an Import Export Code, it doesn’t have to be renewed again since the code is valid for a lifetime.
- Any proprietor can obtain IEC Code in his/her name without even registering the business.
- Export Promotion Council, DGFT and Custom facilitate additional benefits to the Registered IEC holders. Moreover, nobody can claim the revenue without IEC Code.
- No return filing is required for IEC and import/export transactions are also not required to be filed under DGFT.
Reasons to register under Import Export Code
A Partnership Firm engaged in import-export business should register under IEC due to the following reasons:
- IEC reinforces a Company and ensures the organization’s growth by penetrating in international markets.
- Business entities with IEC Number leverage many subsidies provided by DGFT, Custom and Export Promotion Council  .
- IEC Code Registration is easy and time-efficient; therefore, the applicants can get IEC Number within a couple of days. Further, it holds an unlimited validity which is like a bonus that eliminates the need to spend on Code renewal.
- An IEC Code for Partnership Firm provides legal protection which enables to carry import-export activities without much hindrance.
- Unlike other Government Registrations, there are no post-compliances or mandatory filing to DGFT Department in case of IEC Registration.
Documents required for IEC Code for Partnership Firm
Documentation plays a substantial role in Registration process of IEC. In case, an applicant has a Partnership Firm and want to apply for IEC Code; it requires the documents mentioned below:
- A passport size photo of the Managing Partner;
- PAN card copy of the Partnership Firm;
- ID proof such as Passport, Driving License, Voter id, PAN or Aadhaar Card of the Managing Partner who has signed the Application;
- Bank Certificate or a cancelled cheque with the printed name of Partnership Firm and Bank account’s number.
- Sale Deed if the partners own the business premise or Lease/Rental Agreement, in case the office is leased/rented. The Firm must also affix the latest Electricity or Telephone Bill with the Registration Form.
Conditions under which a Partnership Firm needs to get IEC Code
DGFT mandates Partnership Firms to register their IEC Code number in cases like:
- If the Firm is interested in starting an import-export business, then IEC Registration is utmost essential.
- During the clearance of shipments from Custom Authorities, a Firm requires IEC Code Number.
- A bank demands IEC Number in case an importer makes the payment abroad from his bank.
- When an exporter gets the payment for his shipment in foreign currency, then also an IEC Number is demanded by the exporter’s bank.
When is Import Export Code not required?
As per the latest circular issued by Directorate General of Foreign Trade, IEC Code is not necessary for the cases prescribed below:
- IEC Number isn’t mandatory for those traders who are registered under GST. In such cases, the PAN Card of the trader shall be considered as new IEC code for import and export activities.
- Any Department of Indian Government or Ministries along with Charitable Institutions can conduct import and export without IEC Code Registration.
- When the goods are imported or exported for personal purposes, Import Export Code is not required whereas, all the firms have to procure IEC Code as they trade the goods for commercial purpose.
Attributes to consider before applying for IEC Number
Several applicants of IEC Code commit some trivial mistakes that can affect their business majorly. Thus, keep the attributes mentioned below in mind to mitigate such situations:
- Do not apply for multiple IEC Codes with the same PAN card.
- Always provide authentic and accurate information/documents while registering an IEC, since severe actions shall be imposed against the entity for false information.
- The online IEC Registration is very feasible because it enables the applicant to save draft the Application and can file the partial-completed Form later on.
- Keep a hold of the ECOM number and consumer number until you get the final IEC Code.
- Update your profile under DGFT website once IEC Code has been allotted to you.
The process to apply for IEC Code Registration in India
Follow the simple steps mentioned below to attain IEC Code for Partnership Firm:
- Visit the official portal of DGFT to file IEC Number Form.
- Now enter your valid PAN details to login and select the option IEC Online Application.
- Fill IEC Application in the format of Aayaat Niryaat Form 2A or (ANF 2A) and upload the required documents.
- Proceed further to pay the prescribed Registration IEC fee of INR 500.
- Once you are done with all the prerequisites to get IEC Code, you can check your Application status with the reference number generated online.
- If the Authorities of DGFT feel satiated with all the provided information, then it will issue IEC License Number within 10 to 15 days.
IEC Code is crucial for every Partnership Firm that is engaged in import or export for commercial purposes. Doing international trading of goods and services without an IEC License shall be regarded as unauthorized, thus levied with heavy penalties. Moreover, the unregistered business entities cannot avail the perks granted by Government to IEC Registered Firms.
Acquire IEC Code to enlarge your business on an international level with the help of Swarit Advisors. We are legal experts in providing solutions for IEC Code Registration.