For ambitious business owners, domestic markets are never limits. It is considered important to expand the limits of the business. But expanding globally is not without a precise strategy to...
Once you establish a business and initiate the process of obtaining the various license and requisite registrations, it is very much possible for an individual to get confused. A startup to which every single penny matters need to stay very diligent for its investments. IEC is something you must be wondering about when you are in the importing or exporting from India In this article we will discuss obtaining a license to import and export popularly known as IE Code.
What is Importer Exporter code?
It is a 10-digit unique code required to be obtained from Directorate General of Foreign Trade (DGFT). The IE code is issued and governed by the Ministry of Commerce and Industry, Government of India. An IEC is issued with lifetime validity and thereafter you are ready to take your business to the next level at a global level.
Who is required to obtain IE Registration?
- To clear his shipment from the customs, the customs authorities require IE code.
- For the purpose of certain dealings with the bank such as for the payment of money, other transactions with the Banks.
- An IEC is also required by the exporter at the customs port when the exporter sends the shipment.
- At the time of receipt of any money in foreign currency in his bank account, it is required by the Banks
In General Who All Is Required To Obtain IE Registration?
- Proprietorship /LLP /Partnership firm
- Government undertaking
- Registered trust and society
- Other entity
Exempted categories from obtaining IE Registration:
Following are the exempted categories to be exempted to obtain IEC:
- In case of the import/ export pertaining to the personal use and intended not for the commercial purpose.
- When the import/ export is done by the government department and notified charitable organizations.
IEC requirement in case of import or export of services or technology:
In such cases, the IE Code number is required to be obtained only in the case where the provider of service or technology provider is taking some benefit granted under the foreign trade policy or is dealing with specified services or specified technologies.
Documents required for applying for IEC Registration online:
Be ready with following documents, required for IEC Registration:
- PAN Card of the applicant issued by Income Tax Authorities,
- Current Bank account,
- Identity Proof,
- Passport Size photographs,
- Residential address proof,
- Details of your partners,
- Digital Signature,
- Banker’s certificate in the specified format
Process for Obtaining IE Code
- Obtain Class 2 or class 3 Digital signatures of the authorized person, attachments with the application shall be like PAN Card of the applicant, passport Size photograph of the applicant and canceled cheque /Bank certificate.
NOTE in case the applicant is NRI, RBI approval letter needs to be mandatorily.
- Visit the official website of DGFT, login into it through the PAN. An OTP shall be sent to mobile and e-mail for
- Fill in the form for IEC, submit it, along with the documents and attaching the DSC of the applicant, with the fees prescribed by the government.
IEC Certificate is issued within the 2-5 business days.
GST registration and IEC Registration
Let’s understand the connection:
The pendulum will swing one side to another side before it reaches the equilibrium state, well for now with the Implementation of GST and IEC have reached in harmony. The government of India through DGFT, for the purpose of facilitating for ease of doing business in India, vide its notification dated 12th June 2017, notified that any person having GSTIN can import or export, into or from India, by declaring the GSTIN at the time of import or export.
But what about the cases where one has not reached the threshold limit for the GST registration?
Well for such cases, they may use their PAN as their IEC for which application should be made to DGFT for authorizing PAN of Applicant as IEC.
So Get your IE code to expand your business globally through importing and exporting goods and services and yes don’t get stuck or lost due to the compliances, permissions, licenses from the government, just contact us.