Sole proprietorship is the easiest form of firm to create. Sole proprietorship can be formed by anyone and get an IEC code in India. It is a type of Business that has a single owner who pays income tax on the profit earned on Business. Sole proprietorship is a popular business form due to its simplicity, ease of setup, and nominal cost and has no separate identity under the law.
Import is an international as well as domestic form of business in which exchange of goods and services across the international borders takes place. It is a one the most rapid of Business in International trade. This Trade exists because one group or a country has a supply of some commodity or merchandise that is in demand by another.
Import Export Code (IEC) is a unique code issued by Director General of Foreign Trade, Ministry of Commerce. It is compulsory because without this you will not be entitled to Import and Export Business. It is required for the limited services where it requires specific service or technology.
Process of getting the IEC code in India
Registration of your Proprietorship is a good practice since it is an unregistered form of business, but it has to be registered by seeking the local license. If you are dealing in products i.e. selling goods, then you need registration under VAT. If you are a service provider then you need to be registration under Service tax.
Open a Current Account after getting the proprietorship registration. A Current account can be opened with any bank in India. It is important because cancelled cheque is the mandatory requirement in getting the IEC.
Collection of Mandatory Documents is necessary before you going forward with the IEC application, make sure you have the required documents:
Apply for Digital Signatures after collecting the mandatory documents. Apply for digital signatures certificates. Since the IEC code is completely online, one must secure a digital signature to sign and submit the online Import Export Code (IEC) application.
Apply for IEC Code after collecting all the requisite documents and digital signatures. Apply for IEC code in India. An application should be filed with due care to avoid any chance of being rejected.
Export is a term which means shipping of goods and services out of the jurisdiction of the country. People mainly involved in this type of Business are called the Exporter. Selling of goods improves the gross output of the country. Export is an activity requires the involvement of the customs authorities in both the country of export and the country of import. There are different types of trade barriers caused due to government laws, regulations, and policy.
In many countries, internet has bypassed involvement of Customs because of the low individual values of these trades. Since International trade has been a theory of economic thought. Export has an important role in the international trade and commercial policies. There are different methods to export such as
Export business involves a plan. Following are the plans that can be used in Export Business.
Process involved in starting of export Business
There are mainly 3 types of Export Business
Business registration-In this process you need to obtain licenses and permits from the country where you want to explore your Business. This is the first action plan after the decision of type export business. It is recommended to start the business with private limited venture which offers the promotion because of easy protection and easy to access loan. Private limited Company is the most preferred type of firm for export Business.
Tax Registration-After Business registration, Tax registration can be obtained by Business entity name and PAN. Once the PAN has been obtained Bank Loan syndication, Raw Material, and other equipment can be easily purchased. Good and services do not attract VAT/Service Tax.VAT registration is required in case of purchase from another state.
Importance of IEC - It is the code compulsory for any legal export Business. IEC license is required for specific service and also identification of the export business. It is not compulsory in those conditions in which export is for personal use and charitable organization approved by Central Government.
Focus on the early stage of your business by choosing a target niche. In the export vast range of industries are chosen for the benefit of the business and establish a reputation. Export can be of out-of-season produce and inexpensive foreign staples.
Establishment of Foreign contact –This is a time-consuming process in which you need to compile contacts. Place calls and mail marketing materials directly to sales and purchasing managers in each company.
Determine the needs of each of your contacts and begin to make connections. Compile a list of interest of people involved in doing business with you in the previous step. Communicate with purchasing and sales managers in each company to discover which products they have to offer to foreign buyers and which products to purchase from a foreign source.
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Import Export is a one the most rapid of Business in International trade. Import and Export Trade exists because one group or a country has a supply of some commodity or merchandise that is in demand by another. This has been done as the world becomes more and more technologically advanced, as we shift in subtle and not so subtle ways toward one-world modes of thought, international trade becomes rewarding, both in terms of profit and personal satisfaction.
Import Export Code (IEC) is a unique code issued by Director General of Foreign Trade, Ministry of Commerce. In India, IEC is compulsory because without this you will not be entitled to Import and Export Business. IEC is required for the limited services where it requires specific service or technology.
IEC is not required for goods imported or exported for personal use which is not connected with trade, manufacture or agriculture. This is also not required in case when government ministries or departments, or certain notified charitable organizations.
Procedures of Import Export Code
There is requirement of consumer for business to, live long and prosper. Planning must be done to target market to determine potential clients. This also includes geographic area you will draw .Basically these are important in phase of mega-trader building project. Market can be boosted by proper research of company for profit.
IEC (Import Export Code) license is a code which is required by a person for exporting or importing goods. It is a 10 digit code which is issued by the Directorate General of Foreign Trade (DGFT), Ministry of Commerce and Industries, Government of India. It is a prerequisite for a businessman who is into a business of import and export.
Therefore, it is inevitable requirement to obtain Import Export Code (IEC). Following is the process:
These are common documents which are applicable in case of all type of applicant, but there are some other documents which are also required:
Instruction to fill form:
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