In this modern age, everyone wants to scale their business beyond the local territories and the state line. The ambition of doing business globally is much sought after, especially in India. However, it is to be understood that one cannot just simply start doing business with other countries. Certain laws and procedures have to be followed, and registration and license have to be availed. IEC license is mandatory and prerequisite if one wants to venture into importing and exporting from India. If anyone wants to start their business on a global scale, then it is crucial for them to have an IEC license. Then only they can start doing import export in India.
IEC is issued only by the Director General of Foreign Trade (DGFT). It is an import export license which has a 10-digit code and is valid for lifetime. Without IEC, the importer merchants cannot import the products and good without IEC and in the same way; the exporter merchant is not qualified for availing the benefits of the export scheme from DGFT without Import Export Code.
IEC Registration
Certain steps have to be followed for the registration of IEC such as
- An application form is to be prepared in the format of Aayaat Niryaat form no. 2A format. The application is then required to be filed with the respective Regional Office of DGFT.
- The mandatory and required documents have to be prepared such as identity and legal entity, address proof, bank details, and the certificate in respect to
- Once the application is submitted, the filing for DSC has to be done with DGFT, and the required amount of fee for the IEC registration is to be done.
- The approval of the application can take some time, but once it is approved by the government, then in soft copy, the IEC code is received from the government.
Certain specific documents have to be submitted as well because them the procedure cannot be completed.
- Copy of PAN card of the company, firms or of an individual’s.
- Copy of Individual’s Aadhar card, passport or voter id.
- Copy of Electricity bill or Rent Agreement of the premise.
- The Cancel cheque copy of the current bank account of the firm’s, company’s or of the individual has to be submitted as well.
The benefits of IEC registration
If one wants to venture into the business of import export on a global scale in India, then it is mandatory to have the IEC license. There are certain benefits associated with it as well such as it is helpful in growing the business and expansion of products, certain benefits can be availed from DGFT, Customs, etc. There is no need of filing the returns with DGFT anymore. The process of getting the license is quite easy and is availed within 10-15 days of application submission. It has lifetime validity, so there is no need for any renewal.
IEC is not compulsory for all the traders who have GST registration. In such cases, the PAN card of the trader is construed as IEC license for the purpose of export and import.
