Registrar of Companies for an Export License
In today’s competitive business environment, expanding the business beyond the domestic market and stepping into the global trade platform becomes necessary. Import and export activities across international borders allow businesses to scale up and profit.
Before going global with export activities, one must know the systems and procedures in place. You must also follow the process and requirements for obtaining various registration and licenses.
This article gives export authorization and licensing guidelines by answering some of the most relevant questions that help you understand the process and make informed decisions.
Which License Is Required for Export in India?
As per the Foreign Trade Policy, the Import-Export Code (IEC) is required to execute export activities from India. This IEC is a crucial identification number that authorizes import and export in India. However, to export items under the restricted category, Indian exporters require an export license and IEC. For a better understanding, let’s find the difference between the two.
What Is the Difference between an IEC and an Export License?
The Import-Export Code (IEC) is a unique identifier that permits individuals to engage in import and export operations in India. It is issued by the regional office affiliated with the Director General of Foreign Trade (DGFT), which operates under the Ministry of Commerce, Government of India.
An export license is a form of notification that communicates the legal restrictions linked to export operations. It becomes relevant when the imported or exported materials are subject to ethical and environmental concerns. The export license provides guidelines to ensure such activities comply with legal obligations. Determining whether the goods intended for export require an export license before initiating the export process is crucial.
How Do I Know If My Shipment Needs an Export License?
The Indian Trade Classification (ITC) is an organization that classifies export goods into three categories, namely freely exportable, restricted, and prohibited. An export license is required to export goods under the restricted category.
Once you have decided to ship your items, you must check whether your products fall under the restricted category, and accordingly, you must obtain a license as required. This license is issued after a careful review of the details provided.
What Is the Procedure for Applying for an Export License?
Applying for an export license in India is simple and can be quickly done online. Follow the steps below to complete the application process.
Step 1: Visit the DGFT website
Step 2: Go to the ‘Services’ section on the homepage
Step 3: Select ‘online ECom application’
Step 4: Choose the type of license you require, such as a ‘Restricted item import license/Restricted export item’
Step 5: Complete the application form by providing the required information
Step 6: Apply and save a copy in PDF format
Step 7: Email the PDF copy of the application to email@example.com
It is essential to note that there are specific requirements that you must meet to obtain an export license in India. Therefore, it’s crucial to research and ensure you comply with all relevant regulations and procedures. This will help you avoid potential delays or issues in the application process and increase your chances of success.
What Is the Requirement for an Export License in India?
The Foreign Trade Policy (FTP) considers some of the goods as restricted or prohibited, and for the export of such goods, the exporter needs an export license. The export license is issued based on the product category and destination country and allows the export of products from India without any hassles.
The essential documents that you need to apply for an export license are as follows:
- Profile of exporter in ANF -1 form
- Application for the export license of restricted items in ANF-2N form
- Copy of import orders from the importer or an agreement between the exporter and importer
- Application fee receipt
- PAN card
- Identity and address proof
- Bank certificate
How to Register for an Import and Export Code?
Now that we have discussed registering for an export license let’s move on to the import and export code registration process. Registration for an IEC is a simple online process and can be completed in a few steps. The step-by-step procedure is outlined below:
Step 1: Visit the official website of the Directorate General of Foreign Trade (DGFT)
Step 2: If you are a new user, click on the ‘register’ button to create a new account by providing your basic details such as name, email address, and phone number
Step 3: After successful account creation, again login to the DGFT website using your registered email ID and password
Step 4: On the homepage, click on ‘online IEC application’, which will redirect you to the IEC application form
Step 5: Fill in the IEC application form online with all the required details, such as the name and address of the firm or individual, PAN, bank account details, and contact information
Step 6: Pay the IEC application fee online through any of the given payment options
Step 7: After filling out the application form, uploading of necessary documents, and payment of the application fee, click on the ‘submit’ button
Step 8: After applying, you can track the status of your application online.
What are the Requirements for Applying for IEC?
There are specific prerequisites for applying for IEC, as mentioned below.
- A valid Permanent Account Number (PAN) issued by the Income Tax Authority of India.
- A bank account in the name of the company or individual.
- The business should be registered under the Registrar of Companies (ROC).
- The applicant should submit the relevant documents such as identity proof, address proof, incorporation certificate, canceled cheque etc.
Additionally, you may need to know the expenses and duration involved in acquiring the IEC.
What is the registration cost and time duration for getting an Import-Export Code in India?
The government fee for registering the Import-Export Code (IEC) is Rs. 500/-, and a professional fee of Rs.999/-to be paid. So the total cost is Rs.1499/-only. There are no extra fees associated with this procedure.
In general, the IEC is issued within 20 working days. The time may extend depending on the complexity of the destination location and the sensitivity of the items to be exported.
FAQS: Registrar of Companies for an Export License
In which case the import-export code is not required?
Ans. The Import Export Code (IEC) is optional if someone imports or exports goods for personal use only and not for commercial purposes. Import and export done by departments and ministries of the government of India, as well as notified charitable institutions, also do not require an Import Export Code.
What items require an export license?
Ans. The products that fall under a restricted category of goods require an export license. These products include cashew seeds and plants, seeds of all forestry species, rice bran chemicals, vintage motor components, artworks, antiques, and culturally significant goods.
Is it necessary to renew the import-export code?
Ans. Yes, as per the government notification released in 2021, all persons with an IEC must renew the code annually. The IEC renewal can be done online using Aadhaar-based OTP authentication. The purpose of this annual renewal of the IEC is to have correct and updated information about the business and the users of the DGFT portal.
Is IEC Mandatory for the Export of Goods?
Exporters in India are required to obtain authorization for exports. As per the Foreign Trade Policy (2015-2020) and Foreign Trade (Development and Regulation) Act 1992, it is mandatory to get an Import Export Code (IEC) from the Director General of Foreign Trade (DGFT) for the export of goods from India.
Obtaining an export license from the Registrar of Companies is necessary for any business looking to engage in international trade. While the process may seem overwhelming initially, it can be successfully navigated with the proper guidance and resources.
If you need assistance with the process, Instafiling specialists are here to support you every step of the way. Don’t hesitate to get in touch with us for help obtaining your export license and ensuring your business’s success in the global market.
Contact us today, and let us help you get started.
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